Analysis of Company

Submitted to:

Prof. Mr.Srinivasan

Submitted from:

Sunny Agarwal
Videocon Industries:

Videocon is an industrial
Conglomerate with interests all
over the world and based in
india. The Group has 17
manufacturing sites in India and plants in China, Poland, Itlay, and Mexico. It is also the third largest
picture tube manufacturer in the world. The Videocon group has an annual turnover of US$ 4.1 billion,
making it one of the largest consumer elextronic and home appliance companies in India. Moreover the
Videocon group operates through six key sectors which are as follow:

(1) Consumer electronics: In India the group sells consumer products like colour televisions,
washing machines, air conditioners, refrigerators, microwave ovens and many other home
appliances, selling through a multi-brand strategy with the largest sales and service network in
india. Videocon group brands include Akai, Electrolux, Hyundai, Kelvinator, Kenstar, Kenwood,
Next, PlanetM, Sansui, Toshibha, Philips(TV products), etc.
(2) Mobile phones: In November 2009 Videocon launched its new line of Mobile Phones.
(3) Colour Picture tube glass: Videocon is one of the largest CPT glass manufacturers in the world,
operating in Mexico, Itlay, Poland, and China.
(4) Oil and Gas: An important asset for the group is its Rawa oil field with one of the lowest
operating costs in the world producing 50.000 barrels of oil per day.
(5) DTH: In 2009, Videocon launched its DTH product called D2H. As a pioneering offer in the Indian
DTH market, Videocon offered LCD and TVs with built-in DTH satellite receiver with sizes 19” to
32”.
(6) Telecommunication: Videocon Telecommunication Ltd has licensed for mobile service
operations across India. It launched its service on 7 march 2010 in Mumbai.

The table below listed shows the detail of the Videocon Industries which are as follows:

Videocon Industries

Type Public(Bse:511389)
 Industry Conglomerate
Founded 1979
Founder(s) Nandlal Madhavlal Dhoot
Headquarters Aurangabad, Maharashtra, India
Key People Venugopal Dhoot(Chairman)
Products Consumer Electronics, mobile phones,
wireless,internet,petroleum,satellite television,
power
Revenue US$ 4 billion(2010)
Net Income US$276 milion(2010)
Website www.videocon.com

Swot Analysis:

Strenghts:

1. Videocon has largest distributed capacity manufacturing base across india with 17 facilities and
plant in china, Poland,Italy, Mexico.
2. Manufacturing capacity is 1,40000 units.
3. Videocon has a network of 400 plus service and 85 mobile service vans to give better service to
their customers.
4. Tie up with the matsushita electric company of japan add to the goodwill of Videocon.
5. Customers are aware about videocon’s products.
6. Company has good brand name.
7. Strong backward integration.
8. Videocon has largest distribution manufacturing based across in india.
9. Large brand basket.
10. Multi brand basket
11. 3rd Largest picture tube mainufacturing in india.
12. Cheap price.
13. Globally acceptance.

Weakness:

1. Less investment on advertisement of Videocon CTV.

2. Fewer margins to the distributor/dealer.
 3. Weak promotional strategy of CTV.
4. No proper approach to largest customer.
5. Wide brand basket, which might lead to conflict of interest unless effictevely managed.
6. CRT technology is losing popularity.
7. Less focus on unconventional channel.
8. Not providing good service.
9. No exclusive show rooms.

Opportunities:

1. Videocon takes over the Electrolux.

2. Videocon buy Thomoson color picture tube manufacturing plant.
3. Videocon international is going global.
4. Videocon exploring whole new segment.
5. During the climate of jaipur becomes hotter day by day and coolers do not fully satisfy the
customers requirement. This provides a great opportunity for ac manufacturers.
6. Growing semi urban market.
7. Industry is in increasing phase.
8. Price has come down; now more and more people are going for it.
9. Due to financial facilities even the medium segment is going for it.
10. Purchasing power of people is increasing day by day. Moving into new attractive market
segments.
11. Focused on unconventional channels.
12. Mergers joint venture of strategic alliances.

Threats:

1. Entrance of global competitior like china.

2. Brand loyalty is more of LG and other company.
3. Market condition like slumps in market.
4. A new competitor in your home market.
5. Competitor has a new innovative substitute product or service.
6. Increased trade barrier.
7. Brand trade barrier.
8. Brand reputation is not good.
9. Competition in global CPT market especially from integrated players such as LG, Phillips,
Samsung, and Malsushita is intense.

Product Current Scenario:

 VIDEOCON INDUSTRIES LTD. PRODUCT REPORT
Product Name Yea Month Sales UOM Sales Product
r Quantity Value Mix
(Crores)

TV Sets, VCR, Audio And Sub-assemblies 2009 12 34137037 Numbers 5,210.16 55.53
Audio & Other Electricals & Electronic
Appliances 2009 12 5807763 Numbers 2,389.13 25.46
Metric
Oil Crude 2009 12 452115 Tonnes 968.88 10.32
Air Conditioners 2009 12 437662 Numbers 671.26 7.15
Gas Natural 2009 12 141657384 Cu Metres 93.67 0.99
Service Income 2009 12 0   48.17 0.51

Profit Magin:

(RS. In crores)

Profit Sep’09 Sep’08 Sep’07 Sep’06 Sep’05

margin
Net Profit 400.66 982.11 855.22 818.50 427.68

As from the product details and profit margin the company is not performing well because profit is
not obtained as for the previous four years.Moreover in sep’05 the profit is 427.68 crores and rises in
sep’08 but in sep’09 the profit is decreased. So main conclusion frames that company is there for
enhancing profit but due to this company has struggle more and should determine according to the
swot analysis.