Diversified conglomerate Videocon Industries is understood to be making moves to acquire the 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 know of the development said.
This, however, does not include the lighting and healthcare products businesses of Philips India, the source said.
Philips India spokesperson said: “We do not comment on speculation.”
Sources said if the acquisition took place, it would help Vidoecon expand in home appliances, as Philips is a popular brand in the segment. Other products include LCD TVs, DVDs, home theatre systems and audio systems.
Philips, the Netherland-based consumer durable major, which is operating in India for more than 80 years, has earlier said it was strategically shifting its focus to healthcare and life-style segment to promote its products in the country.
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“Voluntarily, we have taken a position that Philips as a 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, it already has 35 per cent market share and in healthcare segment, it is trying to increase its market share.
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.