Videocon Mulls $40m Venture In Vietnam

Videocon International is investing $40 million in a new venture in Vietnam to manufacture a wide range of electronic appliances. The Rs 1,562.3 crore company (1995-96 net turnover) has submitted an application to Vietnam's ministry of investment and planning.

The plant will have a capacity of 8.9 lakh units and will make colour televisions, air-conditioners, washing machines, refrigerators and VCRs.

During the first two years of operations, the company aims at 35 per cent indigenisation which is excepted to increase to 75 per cent in the next five years. The plant will be located in the Dong Nai province and will employ 700 people. The plant will cater to both - the domestic and export market. This marks Videocon's first foray in the international markets. new units or in joint ventures. Apart from Vietnam, the domestic consumer durable major has also been eyeing Italy and some Middle-East countries.

 

In India, Videocon claims to be among the top three in washing machines, colour televisions and refrigerators.

It has lately been facing stiff competition from multinational companies like Akai, Sony, Samsung and GE.