VIDEOCON

Introduction of the Company

Videocon is the very popular and very reliable company in consumer durable sector. It
was established in 1987 by late Mr. Nandlal madhavlal dhoot. In those time it entered in
the market with color and B/W Televisions and Washing Machines. The year 1989-1990
saw the advent of Home Entertainment Systems, Electric Motors and AC. Refrigerators
and Coolers by Videocon came in the year 1991. In 1995 Videocon entered into the
manufacturing of Glass Shells for CRT and in 1996 came with Kitchen Appliances and
Crude Oil. In 1998 Videocon ventured into Compressors and Compressor Motors. It took
over Philips Color TV plant in 2000 and 3 plants of Electrolux India in 2005. In the same
year Videocon acquired Thompson CPT. We can get compete information by going
through company's profile. Shri Nandlal Madhavlal Dhoot, the founder of the Videocon
Group, completed his education in Ahmednagar and Pune. He was a successful sugarcane
and cotton cultivator. As a next logical step to vertical integration, he boldly took upon an
entrepreneurial venture by importing machinery from Europe to set up the Gangapur
Sakhar Karkhana (Sugar Mill) in 1955. Those were the times when the village did not
even have electricity. Thus was unleashed an Industrial Revolution.The die was cast.
Over the years, Nandlalji's path-breaking attitude found expression in a myriadways,
earning him the well-deserved reputation of the pioneer of industrial activity in
Marathwada India.In early 80's Nandlalji initiated his three sons - Venugopal, Rajkumar
and Pradeep into business.Through a technical tie up with Toshiba Corporation of Japan,
he launched India's first worldclasscolor Television: Videocon. Today, Videocon is
household name across the nation- India'sNo. 1 brand of Consumer Electronics & Home
Appliances, trusted by over 50 million people toimprove their quality of life.
Group Profile
Company Profile

Today the group operates through 4 key sectors:

Consumer Electronics, Home Appliances & Compressor manufacturing in India

We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our
consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators,
Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy
with the largest sales and service network in India. Refrigerator manufacturing is further
supported by our inhouse compressor manufacturing technology in Bangalore.
Display industry and its components

With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube
manufacturers in the world operating in Italy, Poland and China, continuing to lead through new
innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.
Colour Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a high level of
experience and technical expertise operating through Poland and India. Videocon will leverage on
this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing
increasing efficiencies and lowering costs.
Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest operating costs in
the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in
this sector globally.
Brief History

Videocon Leasing & Industrial Finance Limited, was incorporated on 4th

September, 1986 as Adhigam Trading Private Limited. In terms of the necessary
resolutions passed under Sec. 21 of the Companies Act, 1956, the name of the
Company was changed to Videocon Leasing & Industrial Finance Limited on 14th
February, 1991. The Company received a fresh certificate of incorporation from the
Registrar of Companies, Gujarat at Ahmedabad on 14 th February, 1991.Adhigam
Trading Pvt. Ltd. (ATPL) was promoted by Mr. Indrakant T. Parikh and Naishad I.
Parikh in September,1986 as a private limited company and was initially engaged in
the business of trading in paper tubes. In September,1988 the Company decided to
diversify in the business oflease financing, hire purchase and investment
activities.The Management of the Company underwent a change in the year 1990-91
by way of transfer of equity shares to the Videocon Group. 1,00,000 Equity Shares
of Rs. 10/- each of Adhigam Trading Private Limited were purchased by the
Videocon Group at a premium of Rs. 3/- per share in April, 1991. The total
consideration of Rs. 13 Lakhs was paid by
cheques.
THE COMPANY & THE VIDEOCON GROUP
As detailed earlier, during the initial years the Companies in the Videocon Group
had placed business with VLIF leading to growth in its lease financing activities.
The group companies have increased the fund base of the Company by infusing
funds in form of share capital and unsecured loans. As detailed in the Capital
Structure, the promoters currently hold 75% of the paid up capital of the
Company.The composition of promoters holding is Videocon International Limited
14,90,000 Shares (13.1% of VLIF's Capital), Videocon Appliances Limited 12,500
Shares (0.1%of VLIF's Capital), the Dhoot Family and their friends & associates
70,10,000 Shares (61.8% of VLIF's Capital). As detailed earlier, the post issue
holding would be of the order of 25.50% of the post issue capital of Rs. 33.375
Crores (assuming that all the OCDs are converted @ Rs.150/- per Share and Equity
Shares are issued against all the outstanding warrants).
2005
Videocon acquires entire stake of Electrolux India on July 07, 2005 Videocon
Industries Ltd has informed that the Company has completed placement of
94,10,145 Global Depository Receipts (GDRs) at the price of US$ 10 per GDR,
aggregating to US$ 94.10 million on Private Placement Basis to AB Electrolux
(Publ). Each GDR represents one underlying equity share of the Company.

Videocon takes over Hyundai Electronics

2007
 - Videocon Industries has bought Planet M, the music and entertainment retail arm
of media house Bennett, Coleman & Co, for Rs 200 crore.
2010
A Rs.1,600-crore plant for colour television sets and other electronic consumer
durables will be set up by Videocon at Manamadurai in Sivaganga district.

Major Achievements
The largest panel production facility in the world under one roof providing very high
economies of scale.
One of the world's largest and most respected CRT glass manufacturers.
Firing the largest furnace of its kind in the world with a tank size of 3300 sq ft.
One of the few companies in the world to convert sand to TV.
One of the largest and most acknowledged CPT manufacturer in the world.
Manufactured India's first rust-free Washing Machine.
Mr. P.N.Dhoot, President of Videocon Group, awarded "MAN OF ELECTRONICS"
2005.
CNBC AWAAZ has awarded Videocon as India's most preferred Washing Machine
Brand
Videocon takes over Electrolux India.
Videocon group, through offshore entity, has acquired the French conglomerate,
Thomson's worldwide Color TV Picture Tube manufacturing units.
Chairman of Videocon group, Mr. Venugopal Dhoot honored with the “Marathwada
Bhushan”
Videocon emerged once again as India's most Trusted Consumer Electronics & Home
Appliances Brand
India's First Rust Free Washing Machine launched by Videocon.
Board Of Directors

Venugopal N Dhoot
Chairman

K. R. KIM
Vice Chairman and CEO
Videocon Industries Limited
Board of Directors
Mr. Venugopal N Dhoot
Mr. Pradeepkumar N Dhoot
Mr. K C Srivastava
Mr. Satyapal Talwar
Mr. S Padmanabhan
Maj. Gen. S C N Jatar
Mr. Arun L Bongirwar
Mr. Radhey Shyam Agarwal
Ms. Gunilla Nordstrom (Nominee - AB Electrolux (Publ) )
Dr. B N Singh (Nominee - IDBI Limited)
Mr. Ajay Saraf (Nominee - ICICI Bank Limited)

Research & Development

The company gives utmost importance to the R & D
activities, which are carried out, at in-house R & D
center. company carries on new innovations in product
development, cost reduction, quality improvement,
process implementations, process controls.
 
 
1) Specific areas in which R & D is carried out by the
company
 
During the year, the company has carried out Research and
Development in the following areas.
Home theaters - High-end models and HTIB Models.
Larger Screen Television i.e. 32 inch and 38inch.
True Flat Televisions.
Plasma Televisions.
Cosmetic design and new out look to the TVs.
Manufacturing of components for CTV, Refrigerators and Air conditioners.
Efforts to reduce power consumption of all its final products.
 
2) Benefits derived as a result of the above R& D.
 
The company has derived the following benefits as a result of the Research and Development:
Development of new design in product and launch of various new models.
Able to compete with the foreign players in the Indian Markets by cost reductions and offering
innovation features and to maintain market leadership in Television under Videocon umbrella.
Increase in Productivity.
Reduction in power consumption of some of the products.
3) Future Plans of action
 
In the coming days company is aiming to achieve development in the following areas through
Research & Development:
Manufacturing of components for consumer Electronics Products.
Multimedia TV.
Plasma Televisions.
Launching of New Brands & Sub-brands under Videocon umbrella.
Composite Home Entertainment system with internet adaptability.
To work on better features, better quality & improved reliability with reduced/low prices.
Your company always attempts to use the latest and advanced technology in production process.
Keeping pace with the technological developments, the company keeps on adding sophisticated
equipments with focus on automation to minimize manual intervention in the manufacturing
process thereby ensuring quality of the final products.

Customers
The customers of Videocon are everyone as it has a wide range of products. It not only
deal with household thing but it also deals with the industrial products too.
The customers of Videocon are not only on India but its network is all over the world.
Videocon business is globally expanded all over the world. The major countries where
Videocon have their business are :-
India
OMAN
UAE
RUSSIA
BANGLADESH
CHINA
ITALY
And its total employees are more than 25000.
Product Range
Color television:-

LCD:-

Plasma:-

DVD player :-

Multi- media Speakers:-

Refrigerator:-

Washing Machine:-

Microwave Ovens:-
Air conditioner:-

Various brands which are takeover by Videocon

Sansui – Sansui is very famous in color TVs and DVD player etc. it has very good share
in urban and rural market.
Electrolux – Electrolux is also well known brand in refrigerators.
Akai – Akai has a very huge market share in rural market. Because its price is very low
and quality is very good.
Kelvinator –Kelvinator is also very popular in home appliances and other equipments.
Kenstar – Kenstar is one of the major brands in coolers and it is very good image in
market.
Vision & Mission
Videocon’s mission: a reflection of continuity and change
Videocon’s mission expression has been crafted to envelope both extant
and emerging realities:
“To delight and deliver beyond expectation through ingenious strategy,
intrepid entrepreneurship, improved technology, innovative products,
insightful marketing and inspired thinking about the future.”
A breakdown of the statement above reveals a ‘means and end’ approach, where the end
is articulated at the beginning with the means linked to it.
“To delight and deliver beyond expectation…”: the end
This segment not only underlines the importance of the ultimate goal - customer
satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate
processes and principals, which have contributed to building a robust, dependable
Videocon value chain (‘deliver’). As a result of its focus on developing loyal customers
and reliable associates, Videocon is able to exceed expectations.
“…through ingenious strategy…”: the means
In the cutthroat world of today, it is only by taking recourse to advance planning and
strategy that a business can hope to survive. Although textbook strategy has its uses,
reproducing it in verbatim for the real world would be foolish because of the absence of
textbook conditions. Thus, there is a need for a bounded rationality, a spontaneity and
improvisation that is flexible enough for scenarios both imaginable and unimaginable.
Videocon’s ingenious manoeuvres are actually flexi-strategy that abstracts from shifting
ground conditions and decides game-plans, or sometimes changes the rules of the game.
“…intrepid entrepreneurship…”: the means
An enterprise with the odds stacked against it makes great business sense. This is
because higher the obstacles, lower the number of players likely to be active in that field
- thus, fetching extraordinary returns. The only requirement is a bold and confident
attitude willing to brave the odds. Videocon’s foray into oil and gas is a bold and
intrepid endeavour that arises from immense faith on the surefooted competence of the
company’s in-house managerial talent.
“…improved technology…”: the means
Technology is no more a premium input; it has become the bare minimum in recent
years. Rapid advances have only fuelled this phenomenon. Videocon is extremely
vigilant in shunting out dated technology and replacing it with the best-in-class offers of
the times.
“…innovative products…”: the means
Product development, innovation and customisation are the tools Videocon uses to stay
ahead of the competition. This ibecause a continuous stream of innovative products
excites the market and enhances brand recall. A strategy that Videocon banks on a lot,
especially on the domestic front.
“…insightful marketing…”: the means
The market share battle scene has long shifted from technology and processes to the
psyche of the customer. This means that those with deeper insights into the elusive mind
of the buyer are likely to dominate. Videocon is reinforcing marketing strengths to read
better the pulse of the market and help create products that map perfectly into customer
preferences.
“…inspired thinking about the future.”: the means
The future is unpredictable, but not doing anything about it is fraught with grave risk.
Videocon extrapolates future trends on the basis of current changes in technology and
preferences as well as sheer gut feel. Fine-tuned business instincts are worth their
weight in gold, lots of it. The company has perfected its practice almost into an art form
with some calculated gambles like oil and gas proving to be absolute money-spinners.

Social responsibilities
Hospitals :
In the memory of our founder Videocon runs a world class hospital with the latest
equipments, MRI, CT scan machines run by dedicated doctors specializing in Cancer
and heart surgery. The hospital is 100% charitable and caters to the people in Indian
villages which cannot even support their families let alone afford medicines.
To pay homage to our beloved chairman late SHRI NANDALALJI DHOOT /
(KAKASAHEB) we have arrange Bhajan program & blood donation on date 26th April
every year. Most of our employees participate in blood donation camp. In year 2004 &
2005 90 to 110 employees have donated blood. The blood donation camp is arranged at
our Dhoot Hospital Blood Bank.
Schools
The group runs a world class school dreamt by our LATE founder in the village of
Gangapur, dedicated to giving high quality high school education to underprivileged
girls inspiring them to aim higher and work for the development of the country.
Creative quality circle team won manufacturing trophy for excellence case study in 3rd
convention held at Jawaharlal Nehru Engineering College Aurangabad and
distinguished award in 17th National Convention at Madurai between 04/12/2003 to
07/12/2003.
BHARARI Team won distinguished award in 3rd convention of at Jawaharlal Nehru
Engineering College Aurangabad and also won excellence award in 17th national
convention at Madurai between 04/12/2003 to 07/12/2003.
Best of the best trophy in mini convention at Jawaharlal Engineering Collage on
17/02/2005.
MANTHAN: QC team IGQA Dept won distinguished award in 18th national
convention held at Ruparel College from 27/12/2004 to 30/12/2005.
Charities :
To pay homage to our beloved chairman late SHRI NANDALALJI DHOOT /
(KAKASAHEB) we have arrange Bhajan program & blood donation on date 26th April
every year. Most of our employees participate in blood donation camp. In year 2004 &
2005 90 to 110 employees have donated blood. The blood donation camp is arranged at
our Dhoot Hospital Blood Bank.
Environment :
The Company consistently pursues reduction in energy consumption in its
manufacturing process on an ongoing basis.An overall awareness has been created
among the employees/workers to avoid wastage of water and power by shutting the
power off when not in use. A parameter has been developed in office atmosphere to shut
power off for some part of day so as to take up manual work and complete the manual
activity during that part of the day. The lighting fixture in the administrative areas has
been optimized. A Quality team has been appointed to closely monitor the consumption
of fuel and lying emphasis on non-conventional energy sources.
The group takes environment conservation seriously. It is working to equip its facilities
with methods that help recycle CRT glass, curb carbon emissions and other pollutants.
Videocon's India glass plant has supported plantation of over 2,00,000 teak tr 
ORGANISATION CHART
Observation
When we entered in the industry there are many workers and employer working in the
industry.We observe that it is not very big industry as like durovalves and Larsen &
toubro company. We saw there are many process used for making air coolers of kenstar.
And the employer provide information to us how air cooler is made. First of all they told
to us many information about their kenstar air cooler and manufacturing process like
packaging, branding, grading, assembling, pricing etc. We observe in the industry the co-
ordination between employer-employee is good and their management is very good.In
this industry also no one can enter without the permission from prior authority. We
observe in the industry when air cooler is being made and it was wonderful to see the
employee working in the industry and their speed was like a machine. We observe that
kenstar is not a totally a Videocon brand it is a part of Videocon. We went to see the
assembling unit of kenstar air cooler which was run and handled by Rajkumar
Engineering Pvt. Ltd. We also observe the kenstar raw material comes from New Delhi
and Faridabad. One thing we observe there management planning, controlling,
staffing,etc was stupendous.

4P’S
PRODUCT
There is wide range of products manufactured by Kenstar. We went to see the assembling
unit of Kenstar coolers which was run and handled by Rajkumar Engineering Pvt. Ltd.
In that unit, there were two types of coolers being assembled, one by the model name:
Double Cool DX CW 0121; and other by the name: Turbocool DX 9704 C. The raw
materials for the products come from New Delhi and Faridabad.
First we will start from the ‘Double Cool DX CW 0121’ model. There is a water tank in
which the motor is fitted, that happens to be the most important part of the cooler and has
an output of 107 watts. The fan is screwed with the grill in front. And, then the cover on
the sides is set on which the controlling system is fixed. With the controlling system set
the wiring in the cooler is done which makes it in a working condition. Then the back
cover and the top is fitted which leads the cooler to the inspection department. Each
cooler is inspected until everything is good. The unit which has no problems goes for
packaging and is ready for sale.

The following are some features and specifications of the above product:
Cooling capacity: 30 Sq. Mtrs.
Suitable for dry and arid climates
Ideal for living rooms, bed rooms, offices and restaurants
Water tank capacity 45litres for longer cooling
High impact resistance ABS engineering plastic body
Trolley (optional)

Now, let us see how the other model ‘Turbocool DX 9704 C’ is assembled.
First the water tank is set and all the wing panels and motor is fixed into the structure.
The fan is screwed inside the cooler and then the wires are connected between the motor
and the fan. The side panels of the cooler are set on the sides of the water tank. And, then
the main frame of the cooler is fixed with the controlling unit. The wires are connected to
the controls. And, the main section of the assembling process, ‘Inspection’ is done and
until the product is perfectly ok, then only it is send for packaging. After the packaging
the product ready to hit the stores.
The following are some features and specifications of the product:
Larger cooling capacity: 60 Sq. Mtrs.
Suitable for dry and arid climates
Ideal for banks, halls and offices
Water tank capacity 40 litres for longer cooling
High impact resistant ABS engineering plastic body
Trolley (optional) 6 blade powerful fan

PRICE
The pricing of the product has to be competitive in order to gain larger market share and
be ahead of ‘Symphony’ the biggest competitor of Kenstar. The price of the coolers
ranges from Rs. 2500 to Rs. 4000. Whereas, the costing of the product is around Rs. 1200
to Rs. 1500 as told by the representative in the company. But, then also customers buy
the products of Kenstar as with high price it also provides with a quality product which
lasts long. This has led Kenstar be the No. 1 company for coolers in India.

PLACE
The unit visited by us is situated in Ahmednagar, Maharashtra. It’s quite a big unit with
lot of space in the plant as well as space for storage of the product. It had a line layout for
the machinery and the production was semi-automated. As the products used to travel
from one assembling process to another through conveyer belts and there were even
workers who were fitting the parts into the structure.

PROMOTION
This is the most important thing that is done to sell the product. Today, more is spend by
a company on promotion and advertising than even on research. Similarly, Kenstar also
spends a lot on the promotion of the product and not only through electronic media, but
also by paper media. And, their promotional strategy is good can be said from the fact
that they are the No. 1 company in the country in manufacturing coolers.

SWOT ANALYSIS
STRENGTHS
The major strengths of Kenstar are the quality product which it provides to the customers.
Having manufacturing units in 7 districts in India adds to the wide market area it covers.
The company even exports the product outside the country to the places like Dubai and
Saudi Arabia. The management also is one of its strength because it is due to the
management only that Kenstar is the No.1 Company in the market of coolers. As there
was very good management in the plant. The work was being done very effectively,
efficiently and lot of discipline was also seen there. The example for this is that when we
were present then also the work was being done smoothly.
WEAKNESSES
There were very less weaknesses to be seen there in the plant. But, what I feel is that the
price of the coolers can be considered as a weakness. As the majority of the market for
this product are the low middle class and middle class people. So, in order not to put
much pressure on them and increase their sales Kenstar should get the price down.
OPPORTUNITY
The biggest opportunity for Kenstar is to lower the prices as it is a time of
recession\recovery the people will start buying more of its coolers than of its competitors.
But, this is possible only when it is first company to do so, i.e. before its competitors.
THREATS
Kenstar being the No.1 Company has to go through many threats. The first being that
every company keeps in mind about the strikes and labour problems. Secondly, the threat
from its competitor ‘Symphony’ which even makes world class coolers and is in 2 nd
position for the same. Thus, if we look at the threats, we will find the same faced by
every other company on this planet.