Videocon aims big, eyes US foray

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"My dream is to enter the US market... We would like to enter the market as soon as we are ready. Probably in two years' time. Once we enter the market we will ring the Nasdaq bell," Videocon group chairman Venugopal Dhoot said.

Videocon, which has enlarged its base in consumer electronics and appliances in India through its acquisition of seven international companies like Thomson, Toshiba, Akai, Kenstar, Electrolux, and Hyundai, plans to enter the US market through the Mexico route where it already has a plant set up.

"You cannot go haphazardly or half heartedly in the US market, because it is 'the market.' It is 40 percent of the world's market. So when you want to enter the US market you have to be very cautious," Dhoot said.

In an exclusive interview with PTI, Dhoot said that Videocon aimed to grow and expand through the inorganic route i.e. merger and acquisition. "We are a $3 billion group now... we intend to become a $10 billion group. We have a corporate plan and we will realize it in the next five years," Dhoot said, adding that mergers and acquisitions will be key to its plan and it was hunting for prospects in Europe and US.

"Our liquidity position is very good and we have 300 million dollar in cash in our balance sheet," he said, while hinting the group could spend as much as five billion dollars 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.

"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, however, stressed that Videocon would not go out just for the sake of acquisition.

"It depends on how good a project is. What is the assured long term profitability and market," he said.

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