VIDEOCON HITS THE HINTERLAND
Article Abstract:
The market share of Videocon International (VI) has declined to 22 percent from 27 percent in colour televisions (TV). its operating profit margins have fallen to 5.9 percent in 1998 from 7.5 percent in 1995. Its net profit had increased to Rs125.04 crore in 1997-98 from Rs82.3 crore in 1996-97. It gives a commission of Rs1,500-2,000 per TV set to its dealers, compared to Rs1,000 of Akai. VI sells more than 5 lakh black & white TVs per annum. The Videocon group's investment of Rs300 crore in real estate and other deals has declined considerably. VI has a research and development wing which has developed receivers, transformers and sound systems to suit the Indian conditions. VI offered a money back scheme for its Bazooka TVs. It sold 50,000 sets in a month under the scheme, resulting in 37 percent of the sales in the last quarter. It is trying to reduce cost by re- designing its production line to produce 18-20 products and models. The promoters, the Dhoots, have made an open offer for a 2 percent stake in VI at Rs140 per share. VI plans to buy Philip's factory in Calcutta. It has made capital investments and its depreciation has increased to Rs70 crore from Rs25 crore. Videocon Appliances, engaged in the manufacture of air- conditioners, refrigerators and washing machines, had posted a net profit of Rs15.1 crore in 1996-97 from Rs34.8 crore in 1995- 96. Videocon VCR, which makes video cassette players and recorders, has posted a net profit of Rs8 crore in 1996-97 (Rs37 crore in 1995-96). Videocon Narmada Electronics, which produces glass shells for picture tubes, incurred a loss o Rs7.7 crore in the 6 months ended September 1997. The Dhoots plan to merge this company with VI. (rk)
Comment:
Reports decline in market share to 22% from 27% in color television market
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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THE PICTURE GETS SHARPER AT PHILIPS
Article Abstract:
Philips India, the Rs1,556 crore subsidiary of Dutch company Royal Philips Electronics N V, has plunged into red with incurring a loss of Rs14 crore during 1997-98. Its television market share of 11 percent four years ago has dropped to 6.4 percent now. In lighting products, it holds a market share of 32.5 percent. During 1997, it sold 690,000 television sets. Around 500,000 of these were low value black and white sets. Even in the audio market, its market share of 35 percent includes cheaper products. Now Philips has taken up a lot of steps to improve its bottomline. It has centralised the company's marketing under a national sales manager. It has introduced a series of new products. A flat, ultra thin, 42- inch television with 15 speakers, costing Rs8 lakh, a new series of large screen televisions, a multimedia home theatre and a new range of compact disc(CD) mini systems will soon hit the market. Its new 21-inch model PT 240 B is said to be selling very fast. It has launched the new palm top computer - Velo, costing Rs35,000, a pen-based personal companion - Nino - for Rs25,000 and a digital video disc player, priced at Rs40,000. It has also invested in upgrading its showrooms and in training salesmen. A Philips Customer Club is being launched. Philips' manufacturing costs are 14 percent and employee costs 7.2 percent compared to 6 percent and 1.5 percent respectively of BPL. To cut costs, it has shed 1,500 employees in the last two years under a voluntary retirement scheme and another 650 employees will retire this year. The Salt Lake colour TV factory in Calcutta has been sold to Videocon. Industrial electronics factory at Loni, near Pune, is up for sale. Philips with all these has earned a profit of Rs2 crore for the first half of 1998-99. (um)
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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DCM HOPS BACK
Article Abstract:
DCM Shriram Industries has achieved a turnaround in performance in 1997-98. It posted a profit of Rs2.5 crore in 1997-98. The rise in net profit is attributed to the improved performance of its rayon chord division. The company exports about Rs9 crore worth rayon tyre chord per month. DCM also owns an yarn division which is performing well. It is likely to post a profit of Rs25 crore for 1998-99. (gs)(vr)
Comment:
DCM Shriram Industries has achieved a turnaround in performance in 1997-98.
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1999
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