I / New Delhi July 08, 2007
| Aiming at an over three-fold jump in revenue to $10 billion, consumer durables major Videocon Group today said mergers and acquisitions will be key to its plan and it was hunting for prospects in Europe and US. "We are a $3 billion group now... We intend to become a $10 billion group. We have a corporate plan and we will realise it in the next 5 years," Venugopal Dhoot, chairman, Videocon Group told PTI in an exclusive interaction. He said the group's ambition would be possible only by mergers and acquisitions -- a route through which it became the owner of French firm Thompson's picture tube business and Swiss company AB Elextrolux' Indian subsidiary. "Our liquidity position is very good and we have $300 million in cash in our balance sheet," he said, while hinting the group could spend as much as $5 billion on its M&A activities. "We are in an acquisition mode because it has lot of advantages... And it takes you through a fast route. Exponential growth is possible only through mergers and acquisitions," he said, adding a core team of 20 people was on job for identifying and studying targets. Asked about funding acquisitions, Dhoot said money was not an issue but getting a good company for takeover was. "Once a good project is identified funding is easily available considering the image Indian companies has developed in the recent past. We are getting good valuations," he added. Dhoot said geographies could be anywhere, and the group was already looking at the US and European countries. "China is also a good place for expansion. But I think the best opportunity exist in India and after that Brazil and Mexico," he added. |
