You are here: Home » Companies » News
Business Standard

Videocon ups Hyundai Elect stake to 100%

Prabodh Chandrasekhar  |  Mumbai 

Videocon Industries Chairman Venugopal Dhoot has taken full control of Hyundai Electronics by raising his stake in the company to 100 per cent from around 70 per cent now. He has bought the 30 per cent stake from Hyundai Korea.
Dhoot confirmed the development to Business Standard but refused to divulge further details on the deal. According to market estimates, Dhoot has paid close to Rs 50 crore to Hyundai Korea for acquiring the stake.
Videocon will keep the rights to market some of its televisions, LCDs, DVDs, refrigerators, microwave ovens and digital cameras under the Hyundai brand name.
In return, the company will pay Hyundai a certain per cent as royalty on sales. The development will help Videocon consolidate its position as a major player in the consumer electronics segment in the country, analysts said.
Videocon has recently announced its acquisition of the Electrolux consumer electronics business in the country and Thomson's colour picture tube business.
Sources said Videocon had well laid out plans to make Hyundai an accepted brand in the consumer durables segment in India. It is a already a well known brand in the auto segment.
Hyundai Electronics India will invest Rs 100 crore in setting up a manufacturing facility in Uttaranchal. The capacity at the proposed plant would be 1.2 million units for CTVs, 0.3 million for DVD players, and 0.2 million units for air conditioners.
"Hyundai Electronics is aggressively planning to expand its dealership network in the country. So far, the company has a network of 2,000 dealers in the country. This will will be expanded to 3,500 by September 2005," said Subir Palit, chief operating officer, Hyundai Electronics India Ltd.
Hyundai Electronics was established last year. According to Palit, in less than a year of the company's presence in the country, Hyundai has been able to capture a market share of 4 per cent in the colour TV market and 8 per cent in the flat television market.
"Till March 2005, Hyundai was able to garner sales of Rs 100 crore. We expect that the sales revenue will rise to Rs 500 crore by March 2006," said Palit.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, August 03 2005. 00:00 IST