Whatever Role Life Gives You, Play it Big. Videocon way baby ..

When Motorola want to turn off their Singapore-based activities, Videocon must be aware about this. For everybody who don’t know what kind of company Videocon is may read this first:

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.

Videocon has four key sectors:

1. Consumer Electronics, Home Appliances & Compressor manufacturing in India
2. Display industry and its components
3. Colour Picture Tube Glass
4. Oil and Gas

And we should add the one below as number 5th;

1. Mobile phone (if it really happen)

How much does Motorola will cost Videocon? Not bad, about $3.8 billion. That’s almost 95 percent out of Videocon’s total budget. Well, how could such a not-so-rich company want to buy the old (80 years), sick and tired Motorola’s mobile device business. Detail will not available through a man like me. But perhaps we would know the question why?

As India mobile phone’s market gone wild in a positive way, every body who have a chance to join in this league seems to jump directly in to it. You know, 55 million handsets are consumed in a year in India and the market is estimated worth at about $2.5 billion.

At the same time, one of the player a.k.a Motorola, is being sick. In India, it is being highly pressed by Nokia and Co’s (Samsung, LG, SE, Huawei, ZTE). Videocon see this as a chance. With a good and remarkable name in their homeland as the maker of popular consumer electronic and the new player in telecommunication, Videocon want to make Motorola as their wireless business catapult.

Rhavi Bhagavan, a vice president at Galileo Global Advisors via Chicago Tribune said that this acquisition will bring Videocon into a new market for them i.e. non-India market.

However, let me refresh your mind with this entertaining reason:

If Videocon still ambitiously want to acquired Motorola with their tiny budget like that, I bet this is probably because their CEO, Venugopal N Dhoot had been influenced by Yash Raj movie entitled; Chak de! India.

You ask me how come? No big deal, one of Videocon’s endorser is Shahrukh Khan. The main actor in that movie and from their official web sites we would know that Videocon people is the fans of Shahrukh. Yeah … Viva India.

Source: Chicago Tribune and Trading Markets

Image courtesy of Service Delight

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 Print Posted by Wim Permana on April 3rd, 2008