Consumer electronics major Videocon has firmed up an plans to set up a manufacturing base at Sharjah in the United Arab Emirates (UAE).
The group is planning to set up a Rs 300 crore greenfield facility in the desert city to manufacture colour televisions, refrigerators, washing machines and air-conditioners, Venugopal N Dhoot, chairman of Videocon International, said. All products manufactured at the new facility will be sold under the Videocon brandname.
The company has no plans to make or sell its other brands such as Toshiba, Akai or Sansui (which have been licensed from these companies) in the UAE market in the near future, Dhoot added.
Videocon already has an assembly line for colour televisions in Dubai. "This fresh investment is aimed at expanding our presence in the Arab market. Depending on the demand growth, we will also tap neighbouring markets," he said.
Dhoot refused to divulge details about the volumes and manufacturing capacity of the plant. He also did not throw any light on the source of the capital he intended to invest in the new venture.
The group, which has diversified interests in power, entertainment as well as consumer electronics, has manufacturing operations in China too.
The company's Chinese unit manufactures Internet-enabled televisions, a part of which it wants to import and sell in India.
Videocon is also buying out its Italian partner's stake in Necchi Corporation, an Italy-based compressor maker.
While end products such as air-conditioners and refrigerators are being manufactured in Italy. The plant and machinery for compressor manufacturing have been shifted to Bangalore, where Applicom India, a 100 per cent subsidiary of the Videocon group, manufactures compressors for exports to Europe, and consumption in India.
Videocon also markets its colour televisions in the European markets. It is also looking at countries in South-east Asia and CIS for possible entry through a joint venture or acquisition.
