INDIA BUSINESS WORLD - AUGUST 2006
THE MONTH THAT WAS...

VIDEOCON SETS SIGHTS ON THAI CRT

FURTHERING its global consolidation strategy, consumer durables heavyweight Videocon Industries is reportedly in talks to acquire Thailand 's Thai CRT, among the world's largest television picture tube makers. Videocon is driving a hard bargain for the Rs 1,700-2,000 crore company, which is in the red due to unmanageable operation costs.

Videocon chairman and managing director Venugopal Dhoot confirmed that talks were on but declined to give details. Sources said pricing issues are being ironed out. The acquisition would catapult Videocon into the world's top component supplier club. Videocon has an installed capacity of 22 million cathode ray tube (CRT ) units while Thai CRT boasts of over 7 million.

Thai CRT was set up in 1986 with promotional privileges from the Royal Thai Government's Board of Investment to become the country's first CRT maker for colour TV manufacturers. Thai CRT shareholders include The Siam Cement Public Company, Mitsubishi Electric Corporation ( Japan ), Mitsubishi Corporation ( Japan ), Crown Property Bureau, Thai Colour TV manufacturers, and member companies in the Federation of Thai Industries' Electrical, Electronics, and Allied Industries Club.

The Siam Cement Public Company, with a stake of more than 50-60%, is the largest shareholder in the company. In earlier acquisitions, Videocon took over Thomson's colour picture tube plant, Electrolux's Indian manufacturing facility and the brand's marketing rights in Asia . It is understood to be close to buying Daewoo Electronics and is bidding for US digital imaging and electronics major Polaroid.

The total global CRT market is around 135 million units and over 95% of the total televisions sold in India is CRT-based. Although high-end flat screen televisions, plasma and projection sets are selling in big numbers, industry majors say CRT TVs will continue to enjoy a large consumer base.