Comments on: Videocon to acquire Onida – Rumor http://aavaas.com/2007/11/05/videocon-to-acquire-onida-rumor/ A Platform for Indian Homemakers Tue, 07 Feb 2012 23:26:05 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: do not drink and drive http://aavaas.com/2007/11/05/videocon-to-acquire-onida-rumor/comment-page-1/#comment-108682 do not drink and drive Sun, 26 Jun 2011 11:47:19 +0000 http://aavaas.com/?p=285#comment-108682 do not drink and drive...! do not drink and drive…!

]]> By: Shalina Sundaram http://aavaas.com/2007/11/05/videocon-to-acquire-onida-rumor/comment-page-1/#comment-95549 Shalina Sundaram Fri, 03 Jun 2011 18:36:49 +0000 http://aavaas.com/?p=285#comment-95549 I wasnt aware of the many ripples and depth to this story until I surfed here through Google! Great job. I wasnt aware of the many ripples and depth to this story until I surfed here through Google! Great job.

]]> By: 30 most read articles on Aavaas – 2007 | aavaas http://aavaas.com/2007/11/05/videocon-to-acquire-onida-rumor/comment-page-1/#comment-22532 30 most read articles on Aavaas – 2007 | aavaas Tue, 06 Apr 2010 17:50:10 +0000 http://aavaas.com/?p=285#comment-22532 [...] Videocon to acquire Onida – Rumor [...] [...] Videocon to acquire Onida – Rumor [...]

]]> By: Williams http://aavaas.com/2007/11/05/videocon-to-acquire-onida-rumor/comment-page-1/#comment-262 Williams Tue, 06 Nov 2007 12:23:33 +0000 http://aavaas.com/?p=285#comment-262 Videocon as a company is much more financially sound than Onida. They are better diversified and are present in multiple segments. Their market capitalisation is pretty impressive - >$4 Billion. By comparison Onida is a really tiny player with scarce access to capital. Except for their brand which does have some equity with consumers, they really are hard up right now. So the news is not surprising, really. Let's see what happens... Videocon as a company is much more financially sound than Onida. They are better diversified and are present in multiple segments. Their market capitalisation is pretty impressive – >$4 Billion.
By comparison Onida is a really tiny player with scarce access to capital. Except for their brand which does have some equity with consumers, they really are hard up right now. So the news is not surprising, really.
Let’s see what happens…

]]> By: Sudarsan http://aavaas.com/2007/11/05/videocon-to-acquire-onida-rumor/comment-page-1/#comment-265 Sudarsan Tue, 06 Nov 2007 10:05:51 +0000 http://aavaas.com/?p=285#comment-265 I forgot to add, Sony/Samsung have their own display and retail show-rooms, but they do not carry other brands and give the retailers a good margin. In the case of NEXT it is a multi-brand retail store, so Videocon dealers/retailers need not take a positive note of NEXT. Performance of Videocon's other acquisition "Planet M" is yet to be seen. BTW, we still have a 15 year-old 21" Videocon colour TV in good working condition (Toshiba picture tube) ;-) I forgot to add, Sony/Samsung have their own display and retail show-rooms, but they do not carry other brands and give the retailers a good margin. In the case of NEXT it is a multi-brand retail store, so Videocon dealers/retailers need not take a positive note of NEXT.

Performance of Videocon’s other acquisition “Planet M” is yet to be seen.

BTW, we still have a 15 year-old 21″ Videocon colour TV in good working condition (Toshiba picture tube) ;-)

]]> By: Vivek http://aavaas.com/2007/11/05/videocon-to-acquire-onida-rumor/comment-page-1/#comment-263 Vivek Tue, 06 Nov 2007 09:44:17 +0000 http://aavaas.com/?p=285#comment-263 Just read this : http://www.vccircle.com/2007/11/06/videocon-buys-music-retail-chain-planet-m-for-rs-200-crore/ <blockquote>"Consumer durables company Videocon Industries has bought out Planet M, the music and entertainment retail chain owned by the Delhi-based media house Bennett, Coleman & Co, for Rs 200 crore ($50 million). The acquisition has been done by NEXT, Videocon’s retail chain for consumer electronics and home appliances (Via Business Standard). Planet M’s current turnover is around Rs 150 crore, which Videocon Chairman V N Dhoot plans to boost to Rs 1,000 crore by expanding to 1,000 Planet M stores all over the country. Currently, Planet M has 150 stores across 42 cities. Videocon group plans to invest Rs 500 crore in the music retail chain business. Bennett, Coleman has sold Planet M as part of the group’s plans to exit non-core businesses. The other major players in music retail are RPG Group’s Music World, Mumbai-based Rhythm House and Groove. Videocon had been aggressive on the M&A front. In 2005, the group had acquired Electrolux India and the French giant Thomson’s colour picture tube manufacturing units. However, its plans to acquire the consumer durable assets of the troubled Korean chaebol Daewoo did not succeed."</blockquote> Just read this :

http://www.vccircle.com/2007/11/06/videocon-buys-music-retail-chain-planet-m-for-rs-200-crore/

“Consumer durables company Videocon Industries has bought out Planet M, the music and entertainment retail chain owned by the Delhi-based media house Bennett, Coleman & Co, for Rs 200 crore ($50 million). The acquisition has been done by NEXT, Videocon’s retail chain for consumer electronics and home appliances (Via Business Standard).
Planet M’s current turnover is around Rs 150 crore, which Videocon Chairman V N Dhoot plans to boost to Rs 1,000 crore by expanding to 1,000 Planet M stores all over the country. Currently, Planet M has 150 stores across 42 cities. Videocon group plans to invest Rs 500 crore in the music retail chain business.
Bennett, Coleman has sold Planet M as part of the group’s plans to exit non-core businesses. The other major players in music retail are RPG Group’s Music World, Mumbai-based Rhythm House and Groove.
Videocon had been aggressive on the M&A front. In 2005, the group had acquired Electrolux India and the French giant Thomson’s colour picture tube manufacturing units. However, its plans to acquire the consumer durable assets of the troubled Korean chaebol Daewoo did not succeed.”

]]> By: Sudarsan http://aavaas.com/2007/11/05/videocon-to-acquire-onida-rumor/comment-page-1/#comment-264 Sudarsan Tue, 06 Nov 2007 08:24:54 +0000 http://aavaas.com/?p=285#comment-264 This rumour is interesting because, Onida seems to be a stronger brand today than Videocon. Be it TV or Split A/C. So the market can react better to Onida acquiring Videocon than vice-versa. If the acquisition is for technology, I am wondering what does Videocon see in Onida, on the technology. Background: Today CRT technology is on its exit (including Plasma), making way for LCD. So CRT prices are slashed by quality brands like Sony (29" Wega at Rs.17K today) and players like Onida (29" at Rs.12-14K). Today Onida and Godrej get split A/C from the same source in China (possibly Voltas too), and LG/Samsung is giving a good fight on the feature, price and marketing front (carefully avoided comparing to the high-end segment of Carrier, O-General, Hitachi, Daikin etc). So there is nothing attractive from an acquisition standpoint. In the case of previous acquisition of Videocon, ie. Electrolux, atleast its a modest brand-name, still nothing much happened on the business front for Videocon. To me, Videocon Top-Management is falling short of ideas, especially good ones. This rumour is interesting because, Onida seems to be a stronger brand today than Videocon. Be it TV or Split A/C. So the market can react better to Onida acquiring Videocon than vice-versa.

If the acquisition is for technology, I am wondering what does Videocon see in Onida, on the technology.

Background: Today CRT technology is on its exit (including Plasma), making way for LCD. So CRT prices are slashed by quality brands like Sony (29″ Wega at Rs.17K today) and players like Onida (29″ at Rs.12-14K).
Today Onida and Godrej get split A/C from the same source in China (possibly Voltas too), and LG/Samsung is giving a good fight on the feature, price and marketing front (carefully avoided comparing to the high-end segment of Carrier, O-General, Hitachi, Daikin etc).

So there is nothing attractive from an acquisition standpoint. In the case of previous acquisition of Videocon, ie. Electrolux, atleast its a modest brand-name, still nothing much happened on the business front for Videocon. To me, Videocon Top-Management is falling short of ideas, especially good ones.

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