The Rs 4,000 crore Videocon group is planning to set up a plant in Bahrain at an estimated Rs 300 crore to manufacture consumer durables.
The investment in the Bahrain plant will be routed through the two companies Videocon Appliances and Videocon VCR.
"The plant will manufacture the entire range of consumer durables ranging from television and washing machines to airconditioners," V N Dhoot, chairman of the group, said.
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The boards of the two companies are meeting on August 19 to decide on two separate issues on non-convertible debentures aggregating to Rs 110 crore. Videocon Appliances is planning to float a Rs 60 crore issue, while Videocon VCR is planning to come out with a Rs 50 crore issue. The debentures to be placed privately will part fund the Bahrain plant.
The balance $40 million has already been raised and deposited with American Express Bank, Dhoot said.
Videocon has a strong presence in consumer durables. However, of late the company has been shifting focus to petroleum. The Dhoot family set up Videocon Petroleum to channelise investments into the sector and is also planning to list the company on the New York Stock Exchange.
This company will also be the vehicle for bidding for the government's stake in either Hindustan Petroleum Corporation or Bharat Petroleum Corporation, which are slated for divestment.