Search the Internet          Tips  Sites: Finance, Investment

Videocon bags Rs 5-billion TV order from Russia, CIS

Partha Ghosh

Videcon International on Thursday received Rs 5-billion worth orders for television from companies based in Russia and the Commonwealth of Independent States.

The deal will involve the manufacture and exports of around 7 million television sets to these countries over a three month period.

Videocon chairman Venugopal N Dhoot, confirming that the deal was signed today, said he had offered "a good price which was cheaper than the offer of Chinese companies".

"I cannot tell you the exact pricing. But the Russians came here and were also convinced about our quality."

Among the buyers are Rolson Max Co, Russia ($40 million), Ausa Internet - Belgrade Ugoslavia ($10 million), Photone Uzbekistan ($30 million) and Sochwell Fond, Russia ($20 million).

These companies will outsource 20-inch and 21-inch colour televisions from Videocon's Aurangabad factories and sell them in their respective country under the Videocon and Kenstar brandnames.

Dhoot claimed the Videocon brand was popular in Russia, while Kenstar, being a European brand, "commanded good equity in the other countries".

In India, Kenstar is a white goods brand, while Videocon is the second largest colour television brand.

The export order will result in Videocon's exports turnover nearly doubling from Rs 5 billion in the fiscal 2001-02 to Rs 10 billion in 2002-03.

Videocon's annual turnover is also likely to touch Rs 50 billion in the next fiscal.

Dhoot, however, declined to comment on this. Videocon has set up a manufacturing facility in mainland China to manufacture Internet televisions. Half of the produce is proposed to be sold in the Chinese market at competitive prices.

Powered by

ALSO READ:
The Rediff Budget Special
The Rediff-Business Standard Special
Money

Tell us what you think of this report