Videocon eyeing Philips' consumer products biz in India

Diversified conglomerate Videocon Industries is understood to be making moves to acquire consumer electronics business of Philips India.
    
"The company is looking at acquiring consumer products vertical of Philips India. The due diligence has just started," a source in the knowledge of the development said.
    
This, however, does not include the lighting and healthcare products businesses of the Philips India, the source said.
    
When contacted, Videocon Group chief Venugopal Dhoot declined to comment.
    
Philips India spokesperson said, "We do not comment on speculation."
    
Sources, however, said if the acquisition takes place, it will help Vidoecon expand in home appliances, as Philips is a popular brand in the segment. Other products include LCD TV, DVD, home theatre system and audio system.
    
Philips, the Netherland-based consumer durable major, which is operating in India for more than 80 years, has earlier said that it is strategically shifting its focus on healthcare and life-style segment to promote its products in the country.
    
"Voluntarily, we have taken a position that Philips as company would be working towards projecting itself as a health and wellness company," Philips Electronics India managing director and CEO Murali Sivaraman had said last year.
    
The company is now focusing more in the lighting and healthcare segment. In lighting segment, it already has 35 per cent marketshare and in healthcare segment, it is constantly trying to increase its marketshare.
    
Videocon had recently failed to acquire Finland-based consumer electronic maker Elcoteq. Last September, both the companies had announced that they have signed a non-binding Letter of Intent for negotiating and finalising a potential Definitive Transaction Agreement.
    
Earlier in 2007, Videocon's attempt to acquire Korean consumer electronic firm Daewoo for $700 million also didn't frutify.