Videocon tweaks plans to sell majority stake in Next

Durables to oil major Videocon group has tweaked its plans to sell stake in its electronics and durable retail chain Next.

The group plans to sell 26% stake in the chain to pave the buyer to buy the majority, 51% eventually, after the government allowed 51% stake in the multi brand retail, said its chairman Venugopal Dhoot today.

Earlier, the group wanted to sell 40% in the chain by Diwali this year. Now, it plans to conclude the deal to sell 26% by December this year.

“When the buyers get 40%, they would be sleeping partners. Since government has allowed 51% in multi brand retail, we would sell 26% stake first and then give them rights to go up to 51%,” Dhoot said.

Already its banker Morgan Stanley has got interests from two US retailers and two European firms to buy the stake, Dhoot said.

“We are looking at foreign retailers with deep pockets who would grow the business and enlarge the markets for eight of our existing brands,” Dhoot said.

Videocon has eight brands including Videocon, Sansui,Kenwood, Electrolux, Kelvinator among others.

Next has 700-odd stores and did a profit of Rs 26 crore on a topline of Rs 2,000 crore for the period ending December 2011. The group is looking at a profit of Rs 50 crore in 2012, Dhoot said.