Videocon likely to set up Dubai unit

Consumer goods maker Videocon Industries plans to invest more than Rs 1,000 crore ($230 million) to set up a new manufacturing unit in Dubai, according to Chairman V N Dhoot.

"We have been invited by the Prime Minister of UAE (United Arab Emirates) and the ruler of Dubai, H H Shaikh Mohammed Bin Rashid Al Makhtoum, to set up a unit for manufacturing consumer durable products," Dhoot said today on the sidelines of a business conference.

He said he would hold further discussions during a visit to Dubai next week. A UAE delegation headed by the prime minister is in the country.

Videocon had sought tax incentives and partnership with the government for the proposed venture, Dhoot said.

He said he would meet government officials next week to discuss the proposed venture, which would help Videocon tap the West Asian consumer goods market.

However, it is understood that Videocon Industries will also go beyond durables in the current stage of expansion. Dhoot added, "We will discuss possibilities in power, oil and real estate to take forward our international expansion plans."

The company already has a unit in Oman called Middle East Appliances. In recent times, Videocon has been spreading its geographic presence at a rapid pace. Last month, Dhoot announced fresh investments of Rs 6,100 crore in setting up an LCD (liquefied crystal display) television manufacturing facility in Italy.

In October 2006, the Videocon-Ripplewood consortium bid $752 million to buy a stake in the ailing South Korean electronics company, Daewoo. In 2006, Videocon took over the loss-making Electrolux Kelvinator India, a subsidiary of AB Electrolux, Sweden, in a cashless transaction, wherein AB Electrolux agreed to subscribe to Videocon's GDR (global depository receipts) issue worth about Rs 406 crore as part of the deal.

In June 2005, Videocon Industries acquired France-based Thomson's picture tube manufacturing business along with its units in China and Poland in a deal valued at $1315 crore.