issue: March 2005 APPLIANCE Magazine New Delhi Report Videocon's European Venture	Share  Printable format  Email this Article  Search
By Adite Chatterjee, New Delhi correspondent, APPLIANCE magazine The Videocon Group has unveiled plans to set up a manufacturing hub in Europe.

Videocon recently announced that it would be taking over a color picture tube (CPT) unit owned by the French company Thomson in Anagni, Italy. The plant has a capacity of 3 million CPTs per annum with annual sales of between 200 million euros and 250 million euros (approx. U.S. $324.2 million). The group plans to eventually use the unit as a European hub for manufacturing consumer products and components. Thomson has confirmed that it would be selling the plant to the Indian appliance company, as it plans to exit the low-margin color television manufacturing business.

Meanwhile, in the domestic market, Videocon is planning to invest Rs 1.2 billion (approx. $34.6 million) this year. This will include capital expenditure of Rs 1 billion (approx. $23.1 million). The company has recently launched a new sub-brand called X-Lent. The company sold 850,000 CTVs this year and is targeting sales of 1.1 million units this year.