Videocon, 2 Korea companies plan JV

The Dhoot family-controlled Videocon International is looking at forming a financial collaboration with two Korean companies, Daehung Electronics and Teravision Corporation, for the manufacture of electrical capacitators.

The new company "" where Videocon and Daehung will hold 40 per cent each and Teravision Corporation 20 per cent "" will be called Daehung Electronics India. It will be registered in Aurangabad where Videocon already has its base of operations.

When contacted, Venugopal Dhoot, chairman and managing director of the Videocon Group, confirmed the development. The proposal is yet to receive clearance from the foreign investment promotion board (FIPB). Neither Daehung nor Teravision have any other collaborations with Indian companies in the same field.

According to the FIPB documents in possession of Business Standard, new facility will be set up for the purpose with an annual capacity of around 16 crore units of film capacitators, metallised capacitators and tact switches. It is not known whether these capacitators will be manufactured for the domestic market or for export purposes.

The company hopes to begin production in August, 2004 and will employ around 80 people initially. Videocon currently has a collaboration with Japanese electronics company Toshiba for the manufacture of televisions.

The company is the sole domestic manufacturer of glass shells for colour picture tube and is a supplier to most CTV manufacturers in the country.