55081127 videocon project

8/2/2019 55081127 Videocon Project

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MARKETING ANALYSIS

ON

Submitted in partial fulfilment of the requirement for the award of

Bachelors of Business Administrative

(BBA)

Made By: Under Guidance of:

Mrinal kakkar Ms. HIMANI GROVER

BharatiVidhyapeethUniversity

School of Distance Education

Academic Study Centre- BVIMR, New Delhi


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ACKNOWLEGEMENT

Project work is never the work of an individual. It is more a combination of

ideas, suggestions, and contribution and work involving many jobs. One of the most

important parts of writing a report is the opportunity to thank all those who have

contributed to it. The list of expression of thanks, no matter how extensive, is alwaysincomplete and inadequate. This acknowledgement is no exception.

I want to express my sincere gratitude towards Ms HIMANI GROVER who

provided me with her expert guidance and invaluable suggestion.

I would like to thank my classmates and all those who directly or indirectly

helped me in one or the other way in the successful completion of the project.


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TABLE OF CONTENT

CHAPTER 1: INTRODUCTION OF COMPANY:-

1.Nature of business.2. Types & ownership pattern.3. Organization structure.4.Production structure.5. Organizational strategies.

CHAPTER 2: INDUSTRIAL ANALYSIS:-

1.Industry overview :- (Growth rate of industry, contribution to GDP).2. Current Issues :- (From newspaper, Journals-for company and

industry).

3.Key competitors.4.Environment scanning:-political environment, economic

environment, socio-cultural environment, technological


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environment, environmental issues (Green environment) and legal

environment.

5.Porters five forces model of competition-Michael Porter.

CHAPTER 3: MARKETING STRATEGIES:-

1.Products of company.2. 4Ps (Product, Price, Place & Promotion).3.STP (Segmentation, Targeting and Positioning).4.

Distribution channels.

5.Promotion strategies.

CHAPTER 4: FINANCIAL ANALYSIS:-

1.Sources of finance.2.Ratio analysis Any 5.3.Net profit/balance sheet (from annual report) Analyses.

CHAPTER 5: KEY LEARNINGS FROM THE COMPANY AND

RECOMMENDATIONS:-

1.Performance Analysis of the Company.2.Market share/growth rate of company.3.SWOT Analysis of the Company.


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CHAPTER 6: Findings

CHAPTER 7: Conclusions and Suggestions

Bibliography

Reference Books, Journals, Newspapers, Web Sites, Reports etc. are to be

listed out here.

CHAPTER 1: INTRODUCTION OF COMPANY:-

1.Nature of business.2. Types & ownership pattern.3. Organization structure.4.Production structure.5. Organizational strategies.

INTRODUCTION

Videocon Industries Ltd. was one of the initials companies that made it to the World.

Videocon Electricals captured the initial Indian Electrical market and topped the charts for its


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products such as Refrigerators, television etc. before other players such as Samsung,

Whirlpool etc .entered Indian market. Videocon was one of the first Electronic Company to

Collaborate with Japanese Toshiba Ltd as early as 1985.

It is one of the biggest Indian Electrical brands not only in India but also globally. Indeed,

Videocon is one of the fastest paced Electrical Products worldwide. Videocon thus posed an

exciting opportunity to study a brand that is automatically associated with youth and

technology.

Videocon deems it a privilege that it is in a position to prolong instances of joy and spirit.

And lend muchneeded variety and flair in everyone's life.

An Indian multinational, a global force in display technologies and a group on the threshold

of even bigger things.There are new horizons to breach, new frontiers to conquer and simply

no pause buttons on the Videocon play. Expect the unexpected, the uncharted and the

unlimited.

NATURE OF BUSINESS

Manufacturer & Exporter of Conventional Colour TV and LCD TV Receiver Sets, D2h

Set Top Box, VCD/MP3 Players, Air Coolers, Music Systems, Airconditioners, Home

Theaters like Refrigerators, Automatic & Semi Automatic WashingMachines, Dish Washers,

Microwave Ovens, Mixer, Grinders and Water Purifier like TV, DVD/MP3 & Audio

Components, Glass Shells for Colour Picture Tubes, Populated PCBs, Tunners, Monitors for

Computer, Compressors and other Electronic Assemblies and Sub-Assemblies like Digital

Diaries, Kiddy PC, Data Projector, Power Inverter, Digital MP3 Player and Palm Top like

ISP, Content and Web Solutions. Crude Oil Extraction 50000 Barrels per Day.

1050MW Power Generation. Videocon LCD TV, Videocon Air Conditioners, Videocon

Refrigerators, Videocon Washing Machine.

Type and Ownership Pattern


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Consumer Electronics, Home Appliances & Compressor manufacturing in

India

Videocon enjoys a pre-eminent position in terms of sales and customer satisfaction in many

of our consumer products like Color Televisions, Washing Machines, Air Conditioners,

Refrigerators,M

icrowave ovens and many other home appliances, selling them through aMulti-Brand strategy with the largest sales and service network in India. Refrigerator

manufacturing is further supported by our in-house compressor manufacturing technology in

Bangalore. Videocon has the largest distributed manufacturing base across India 12

facilities. It has the Capacity to manufacture 4 million CTVs, 2.5 lacs washing machines, 1

mn. DVD players, 4.8 mn refrigerators.

Displayindustry anditscomponents

With the Thomson acquisition Videocon has emerged as one of the largest Color Picture tube

manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead

through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9

format CPT.

ColorPictureTubeGlass

Videocon is one of the largest CPT Glass manufacturers in the world with a high level of

experience and technical expertise operating through Poland and India. Videocon will


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leverage on this synergy after the Thomson acquisition to internally source glass for its CPT

manufacturing increasing efficiencies and lowering costs.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest operating costs

in the world producing 50,000 barrels of oil per day. The group has ambitious plans for

expansion in this sector globally.

LOGO LOGIC

This is the new Videocon symbol. It reiterates the ethos of a company dedicated to

maintaining the highest international standards of excellence through quality, technology and

innovation. For over a decade now, Videocon has been bringing the latest and very best in

Consumer Electronics and Home Appliances. Successfully adapting the best of

internationaltechnology to suit Indian needs, and crafting it to improve the quality of life as

million of satisfied customers will agree.

The new symbol of Videocon asserts its passion for global impact, and the two Es on either

side represent the Groups wide spectrum of interests ranging from Electronics to Energy.

Along with the steely glint, this communicates the group's global ambition, its strength,

sterling credentials and innovative drive. A symbol that proclaims a paradigm shift.A sign

that represents the new force that is Videocon.Thus recapitulating our principle of reaching

out and touching the lives of millions of people Worldwide.

OWNERSHIPPATTERN


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Sr.

NoCategory of shareholder

Number of

shareholders

Total number

of shares

Number of shares

held in de

materialized form

As a %

of (A+B)

As a % of

(A+B+C)

(A)Shareholding of Promoter and Promoter Group

(1) Indian

(a) Individuals/ Hindu Undivided

Family

13 1619838 1292950 0.87 0.73

(b) Bodies Corporate 44 153823583 152711452 82.6 69.57

Sub-Total

(A)(1)

57 155443421 154004402 83.47 70.3

(2) Foreign

(a) Individuals (Non- Resident

Individuals/ Foreign Individuals)

0 0 0 0 0

(b) Bodies Corporate 0 0 0 0 0

(c) Institutions 0 0 0 0 0

(d) Any Other (specify) 0 0 0 0 0

Sub-Total

(A)(2)

0 0 0 0 0

Total Shareholding of

Promoter and Promoter Group

(A)=

(A)(1)+(A)(2)

57 155443421 154004402 83.47 70.3

(B) Public shareholding

(1) Institutions

(a) Mutual Funds / UTI 21 36571 35228 0.02 0.02

(b) Financial Institutions/ Banks 36 304403 291166 0.16 0.14

(c) Insurance Companies 5 5600352 5599752 3.01 2.53

(d) Foreign Institutional Investors 95 13467563 12706367 7.23 6.09

Sub-Total

(B)(1)

157 19408889 18632513 10.42 8.78


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(2) Non-institutions

(a) Bodies Corporate 1927 5516620 4962476 2.96 2.5

(b) Individuals

(i) Individual Shareholders holding

nominal share capital up to Rs. 1

lakh

342862 4685290 2998613 2.52 2.12

(ii) Individual Shareholders holding

nominal share capital in excess

of Rs. 1 lakh

19 1171618 1171618 0.63 0.53

(c) Any Other (specify) 0 0 0 0 0

Sub-Total(B)(2) 344808 11373528 9132707 6.11 5.15

Total Public Shareholding (B)=

(B)

(1)+(B)(2)

344965 30782417 27765220 16.53 13.93

TOTAL(A)+(B) 345022 186225838 181769622 100 84.23

(C) Shares held by Custodians and

against which Depository

Receipts have been issued

2 34867863 34862403 0 15.77

GRAND TOTAL

(A)+(B)+(C)

345024 221093701 216632025 100 100

Organisational structure of Videocon


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Production structure


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Cost cutting Videocon was better positioned to shift the activities to low-cost locations and

also it could integrate the operations with the glass panel facility in India with the CPT

manufacturing facilities acquired from Thomson S.A. Videocon wanted to leverage its

position in the existing parts of the business and this acquisition would give it a strong

negotiation position and could reduce impact of glass pricing volatility. Videocon could also

reduce the costs by upgrading and improving the existing production lines.

Vertical Integration The acquisition helped Videocon in vertically integrating its existing

glass-shell business where it had been enjoying substantially high margins.[8] Videocons

glass division had the largest glass shell plant in a single location. This gave the company an

unrivalled advantage in terms of economies of scale and a leadership position in the glass

shell industry. The acquisition also gave Videocon a ready-market for its glass business and it

was part of Videocons long-term strategy to have a global vertically-integrated

manufacturing facility.

Rationalization of Product Profile Videocon modified its product profile to cater to thechanging market needs like moving away from very large size picture tubes to smaller ones.

Apart from the overall strategy Videocon also had a plan on the technological front. It wanted

to improve the setup for the production line and line speed post-merger. Its focus was to

increase sales while reducing the costs and thereby improving the productivity of the existing

line. The company also wanted to foray in a big way into LCD panels back-end assembly. On

the sales front the company wanted to leverage on the existing clients of Thomson and build

relation as a preferred supplier to maximise sales. Also, Videocon could benefit from OEM

CTV business with the help of Videocons CTV division, invest for new models and

introduction of new technologies.

Videocon has not been able to turn the plant around in Italy still. However it is getting

support from the local governments (which want to prevent job cuts) in form of grants. The

government is in fact trying to set up a Greenfield venture in form of a LCD manufacturing

facility in partnership with Videocon. The banks are also supporting Videocon and with help

from all these quarters Videocon expects to turn around the plant in Italy.[13] The Thomson

plant has not turned around in Mexico as well and in fact production has been reduced over

there.InPoland,the situation is more promising and Videocon hopes that plant over there will

get in black in the very near future.[14] However the surprise has been in the Chinese market

.Despite facing a highly competitive market Videocon has managed to turn a plant around

while the other is on its way. In China Videocon is adopting a different strategy for

manufacturing CTVs as the local players dominate the market .It plans to supply these players

by taking advantage of low-cost nature of mainland(the number targeted by it about 6 million

CPT,s)


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VIDEOCON STRATEGIES

y Multi-brand strategy

Videocon International was the first Indian company to adopt the strategy of multi-brands.

Apart from its mid-priced brand Videocon, the company now hawks Toshiba, a premium

brand, and the low-priced brands Akai and Sansui. The multi branding technology paid off as

Videocon managed to hold on to a combined market share of around 19.6 percent, with LG at

25.9 percent and Samsung at around 13.8 percent.

Overall, the shift in the power to trade is probably one of the defining developments. It is

important since the TV companies themselves have taken it seriously and embarked on

crafting longer-term strategies to accommodate this development. The effectiveness of their

strategy and the responses of the other players promise to deliver a few more years of

enterprising developments in the Indian TV market.

y Backward Integration

Videocon integrated backwards by getting into manufacture of components such as electron

guns, metal parts and deflection yokes for CTVs and compressors, and electric motors and

plastic components for households appliances such as washing machines, refrigerators and

Air conditioners. The group integrated further to get in to manufacture of glass panels and

funnels, the key components for the manufacture of color picture tubes.

Videocon enjoys a unique synergy in the global CTV business from glass to CRT (Cathode

Ray tubes) to CTVs. - (From Sand to CTV). Together with other components for householdsappliances. This high degree of backward integration bestows upon the company a unique

benefit over competition.

y Videocon's Revenue mix


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Performance Measures


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CHAPTER 2: INDUSTRIAL ANALYSIS:-

1.Industry overview :- (Growth rate of industry, contribution to GDP).2. Current Issues :- (From newspaper, Journals-for company and

industry).

3.Key competitors.4.Environment scanning5.Porters five forces model of competition-Michael Porter

Industry overview

COMPANYS PROFILE

Today the group operates through 4 key sectors:

Consumer Electronics, Home Appliances & Compressor manufacturing in India

We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer

products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave

ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest

sales and service network in India. Refrigerator manufacturing is further supported by our in hous

compressor manufacturing technology in Bangalore.


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Display industry and its components

With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube

manufacturers in the world operating in Italy, Poland and China, continuing to lead through ne

innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.

Colour Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a high level of experience

and technical expertise operating through Poland and India. Videocon will leverage on this synergy

after the Thomson acquisition to internally source glass for its CPT manufacturing increasing

efficiencies and lowering costs.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest operating costs in the

world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this

sector globally.

Current issue of Videocon

Videocon V1688 Twist & Turn available in market

Description:

Videocon V1688 Twist & Turn is the new stylish and well designed mid-range mobile phone by

Videocon which has just been launched in the market. The mobile comes loaded with lots of attractive

and impressive features as well as dimension. This mobile is priced at Rs. 6,995/- in Indian market

which is affordable than othermobiles having same features.


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Videocon V1688 Twist & Turn is the 90 degree roted full QWERTY keyboard impressive mobile

phone that has 3.2 inches touchscreen display screen. This display screen of the device generates

resolution of 320x480 that shows pictures of better quality.

This amazing designed mid-range mobile has all the music features such as MP3 andMP4 with

formats of 3GP, AVI, RMVB video etc. It is boasted with a 2 mega pixel of camera that can capture

photographs at resolution of 1600x1200 pixels and video recording at format of 3GP and 15fps. It is

also loaded with dual speakers for loud music and a 3.5 mm audio jack.

The mobile supports Java language, EDGE & GPRS and stereo Bluetooth streaming (A2DP), while

comes pre-loaded of popular social networking sites likeMSN, Yahoo, Facebook and Skype. The

mobile comes pre-installed a 2GB microSD while its memory can be upgraded up to 4GB through

using a memory card.

The mobile, Videocon V1688 Twist & Turn, supports dual SIM (GSM+GSM) that provides excellent

networking facility. This impressive handset is corporated with a solid 1000 mAh battery that allows

long talk and standby time. The mobile is available in Red, Yellow and Silver colour shades.

Important Competitors

LG ELECTRONICS

LG Electronics rightly understood the consumer motivations to create magnetic

products, price them strategically, position them sharply and keep making the

magnetism more potent. Having understood the finer differences in consumer

motivations, it opted for sharp- arrow reasons-to-buy differentiation over the

blanket-all approach taken by most of the other players. It is an aggressiv

marketer. It focuses on low and medium price products.

SAMSUNG

Initially the strategy of Samsung in India was to create premium image by

emphasising global brand. After facing stiff competition from another Korean major-

LG, Samsung also started playing price game. In 2004 it reverted back to its premiu

positioning, although it resulted in some loss of market share. In line with the Global

Digital Initiative of the Parent Company, Samsung India is seeking to acquire digital


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leadership in India by introducing its digital ready televisions like the 40" LCD

Projection TV, 43" Projection TV and the Plano series of Flat Colour televisions.

ONIDA

Its popular devil ad although had engendered a strong emotional pull towards the

brand, technologically it represented no advancement. The company plugged the gapby touting its digital technology. Like Videocon, it has also been able to hold its

market share. The world-class quality of Onida has enabled the company to make a

breakthrough on the export front. It has technical tie- up with the Japan Victor

Company, better known as JVC. So focused is Onida on positioning itself on the

premium, high- tech plank that it is even planning to push its own envelope on

obsolescence, much. The strategy is aimed at further broad basing the produc

offering of the company, which has largely dominated the top-end of the television

market, across multiple market segments.

VIDEOCON

Videocon has always been a price player and has an image of a low price brand. Thi

entails providing more features at a given price vis--vis competitors. It has taken

over multinational brands to cater to unserved segments, like Sansui- to flank the

flagship brand Videocon in the low to mid priced segment, essentially to fight agains

brands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like

Aiwa.

Videocon is one of the largest manufacturers of television and its components in

India and thus has advantages of economies of scale and low cost due to

indigenisation. It has the widest distribution network in India with more than 5000

dealers in the major cities. It also has a strong base in the semi-urban and rural

markets. Due to its multi-brand strategy, it has at present multiple brands at the same

price point. This has led to a state of diffused positioning for its brands. It has also le

to a cannibalisation of sales among these brands. The flagship brand Videocon has

lost market share due to the presence of Sansui in the same segment. Because o

reduction in import duties on CPT the cost advantage of Videocon is also on the

decline. Hence it is facing rough weather and also trying to boost exports.

Besides understanding the strategy adopted by different players, several other factors-

industry growth, concentration and balance, corporate stakes, fixed cost, and product

differences need to be analysed to determine the extent of rivalry between th

existing Players.


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ENVIRONMENTAL SCANNING

PEST ANALYSIS

1. Political Factors

y Labour unions effects a lot the production

y Resolution to reduce emission of carbon footprints in the atmosphere

y Anti-dumping duty on imported color picture tubes

2 . Economical Factors

y Growth of retail sector expected to reach 16% by 2011-12from 4% in 2007

y

High investments are needed in the consumer durables

y Emergence of organized retail market with large players likeCroma, Next, Reliance

Digital - leading to lower prices and higher varieties

3 . Social Factors:

y Changing perception of luxury to necessity

y In rural areas there is poor infrastructural facilities likeavailability of electricity

y Demand of the consumer durables is seasonal and cyclic

y Highly growing consumer durable market

4 . Technological Factors:y Improved electricity consumption

y Higher quality products

y Technological is changing at a very fast rate


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PORTERS MODEL

In order to understand the industry better, we analyze the industry using Porters Five Force

Model-

- Threat to entry

- Rivalry of among existing firms

- Bargaining power of buyers

- Bargaining Power of Suppliers

- Threat of Substitutes

Suppliers

(Supplier

Power)

Potential entrants

(Threat of

Entry)

Industry

Competetitors

(Segment rivalry)

Substitutes

(Threat of

substitutes)

Buyers

(Buyer

Power)


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Threat to Entry-

y Entering the CTV market isnt very easy. One of the most important features needed

is a good distribution system which isnt something that can be developed overnight.

y Also a television today is a style statement. Therefore the brand plays an important

role in influencing the purchase decision. For a new company then entering this

market, not having a recognized brand name is a threat to entry.

Rivalry among existing firms-

y There is strong competition among the current players. The main players being LG,

Samsung, Onida, Videocon, Philips, Sansui. Some of the regional players are-

Hyundai and Haier are new entrants in the CTV space in addition to a number of

small regional players.

y This increased competition has ensured that advertising costs are an integral part of

the players total cost. A lack of product differentiation means that price is a

competitive feature that intensifies rivalry. The highest price reductions during 2002-

03 to 2005-06 were in the 20inch and 21inch CCTV category.

y With the future being in LCDs, this market is likely to see price reductions future.

y It is expected that realizations will fall with increased competition.

Bargaining Power of Buyers-

y The TV market today is a consumers market where the consumer has the upper hand

with him having the power of choosing from a variety if brands.

y This bargaining power of the buyer has forced the players to offer credit facilities on

sale, to provide lower EMIs and excellent after-sales service.

y The intense dealer competition also benefits the consumer in terms of prices and

offers available.

y Inventory carrying costs for television companies are high. This is a boon for the

consumers as it translates into higher bargaining power for the consume

Threat of Substitutes-


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y For a television, the substitute can only be a functional substitute. The functional use

of a television is to watch programs, live events etc. This today can also be done on a

computer.

y Theaters too can be a substitute to watching movies at home.

y Today with various multiplexes and theaters providing screenings of live events such

as sports telecasts etc along with the luxury of good food and the opportunity to enjoy

the event with a number of other enthusiasts, the TV can be substituted if the TV is

bought only to watch certain events.

y However if the television on considered to be a style statement and a lifestyle

statement, then consumers will seek to keep upgrading the type and the model of their

television sets.

Bargaining Power of Suppliers-

y PCBs (Printed Circuit Boards) & CRTs (Cathode Ray Tube) are key raw materials in

the production of CTVs.

y CRT accounts for 46-48 per cent of the total raw material costs of a CTV. PCBs and

housing components account for 33-39 per cent of total raw material costs.

y Domestic CPTs prices tend to follow Global price trends. Therefore the suppliers do

not have much of bargaining power in this regard.

y Cabinets are sourced from plastic manufacturers and as these manufacturers supply to

different industries, they therefore do have a bargaining power, especially in

comparison to CRT suppliers.


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CHAPTER 3: MARKETING STRATEGIES:-

1.Products of company.2. 4Ps (Product, Price, Place & Promotion).3.STP (Segmentation, Targeting and Positioning).4.Distribution channels.5.Promotion strategies

1.Products of company

CONSUMER ELECTRONICS

PLASMA

SPILT AC

WINDOW AC


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MOBILE PHONES

WASHINGMACHINE

REFRIGERATOR

HOME THEATER

MICROWAVE


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DISH TV

LCD TELEVISION

4Ps

The 4Ps includes the Product, Price, Place and promotion.

Product Mix

Product mix is the set of all product and items a particular seller offers for sale. Product mix

consists of various product lines.

The width of a product mix refers to how many different product lines the company carries.

The Videocon television has product mix width of five lines. I.e. plasma, LCD, Slim, flat and

Conventional.

The length of a product mix refers to the total number of items in the mix.

i.e. for the line of LCD the length is 2 as it has two items 50 PDP and 42 PDP.

The depth of the product mix refers to how many variants are offered of each product in the

line, i.e. For LCD the depth will be 2. As Videocon is offering only one product in 50 PDP

and 42 PDP.

The three product-mix dimensions permit the company to expand its business in three

ways.


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y It can add new product lines, thus widening its product mix.

y It can lengthen each product lines.

y It can add more product variants to each product and deepen its product mix.


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Width, Length & Depth

Width = 5 (Plasma, LCD, Slim, Flat, Conventional)

In the product mix of Videocon, it is having 37 different models, which gives them their

product line Depth.

PLASMA

Plasma television technology is similar to the technology used in a fluorescent light bulb. The

display itself consists of cells. Within each cell two glass panels are separated by a narrow

gap in which neon-xenon gas is injected and sealed in plasma form during the manufacturing

process.

The main advantage of Plasma over CRT technology is that, by utilizing a sealed cell with

charged plasma for each pixel, the need for a scanning electron beam in eliminated, which, in

turn, eliminates the need for a large Cathode Ray Tube to produce video images. This is why

traditional televisions are shaped more like boxes and Plasma televisions are thin and flat.

Advantages of Plasma Television:

y Largest Screen Formats.

y Superior Contrasts.

y Versatile.

Plasma LCD Slim Flat Conventional

50PDP42 LCD 29 slim 29 flat 21 FFST

42PDP32 LCD 21 slim 21 flat 20conv

26 LCD 15 flat 14conv

20 LCD

19 LCD

Length 5 2 3 3


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y Capable Of Displaying Full HDTV &Dtv Signal.

y Capable Of Displaying Xga, Svga&Vga Pc Signal.

y Wide Viewing Angle.

y Wide Rage Of Richer Color Over 16 Million.

y

Superb Realistic Images.y Less Expensive Than Lcds.

y LifeMore Than 30,000 Hours.

y Wide Screen Aspect Ratio around 16:9.

y Perfect Flat Screen.

y Uniform Screen Brightness.

y Slim & Space Saving Design.

50"PDP

Integra 50

10000:1 Contrast Ratio

3:2 & 2:2 Pull Down

HDMI Compatible

3-D Video Noise Reduction

PC Input

42"PDP

16.77 Million Color

10000:1 Contrast Ratio

3.2 & 2:2 Pull Down1500cd/m

2Brightness

HDMI Compatible

3-D Video Noise Reduction


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LCD

The flabs are out and now technology has switched over to sleek and slim products, LCD

being the prominent amongst them. LCD technology is the recent breakthrough in consumer

electronics and because of its esteemed advantages this segment is growing day by day.

Videocon are launching this range under the sub brand Integra. INTEGRA term indicates

the integration of various systems connectivity with LCDTV.

This is an integration of best sound quality and excellent picture quality.

What is TFT-LCD?

Meaning of this term is Thin Film TransistorLiquid Crystal Display. TFT technology used in

this category offers the best image quality in flat panels. This technology is also called as

ActiveMatrix Technology.

40"

LCD,32"

LCD,26"

LCD, 20" LCD, 19" LCD

Slim

WithContinuousResearch&Development,Videocon brings a revolutionary advancement in

physics & brings new Slim & Trim Television.

The Most significant feature of the Slim & Trim Television is its one kind of super slim

picture tube technology. This has enables us to make the TV 42% Slimmer.

Slim Picture tube is a product with reduced depth providing the TV and monitor producers

with opportunity to design Slim, flat and stylish TVs comparable to plasma or LCD panels

maintaining Good picture Quality

29" SLIM

21" SLIM

Flat

Videocon Bada Woofer with Surrounds Bass Technology

Bass Amplification by Dynamic Alignment (BADA) woofer is a revolutionary technology

that offers a new sound to create an unbelievable sound space

Videocon unique Bazoomba Woofer Technology

Videocon's superior Bazoomba Woofer Technology incorporates a unique conjugate

arrangement of Woofer motors that ensures rich bass reproduction.


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The Bazoomba Woofer Technology

Enables the generation of the lowest bass frequencies from a small enclosure (Bazoomba

tube). Enables cleaner and tighter bass reproduction due to acoustic cancellation of distortion

in the even harmonics

29" TFT

21" TFT

15" TFT

Conventional TV

21" FFST

20" CONV

14" CONV

Pricing

The pricing of the Videocons various models is as following.

Plasma TV : Rs. 59,990 - 2, 40,000

LCD TV : Rs. 28,400 89,900

Slim TV : Rs. 10,400 18,900

Flat TV : Rs. 5,500 18,400

Conventional TV : Rs. 4,600 - 9,500

Place

Videocon has its presence all throughout India.

They have their presence in 25 states and each state has at least 2 divisions per state. In total

they are having 78 divisions.Videocon has around 1800 dealers in India. They are having 96

service centers across India.


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Promotional Activities

Focusing on LCD, Plasma and 29 Flat TVs since 2006.

By institutional selling. Company used both TVC as well as print media for promotion. The

company is using outdoor media promotions in hording and bus shelters to high light the

feature packed advantages.

Major tie ups in the background IIT alumni/ Videocon Santos ham film awards 2006 with

ZEE and ICC Cricket champions trophy.

Seasonal offers

Trip to Germany during FIFA world cup

Videocon bonanza offer ( har din diwali) during diwali

Chance to win car, motor bike and LCD TV'

SEGMENTATION, TARGETING & POSITIONING

(STP)

SEGMENTATION:

Market segmentation is the process in marketing of dividing a market into distinct subsets

(segments) that behave in the same way or have similar needs. Because each segment is fairly

homogeneous in their needs and attitudes, they are likely to respond similarly to a given

marketing strategy. They are likely to have similar feelings and ideas about a marketing mix

comprised of a given product or service, sold at a given price, distributed in a certain way and

promoted in a certain way.

The process of segmentation is distinct from targeting (choosing which segments to address)

and positioning (designing an appropriate marketing mix for each segment). The overall

intent is to identify groups of similar customers and potential customers; to prioritize the

groups to address; to understand their behavior; and to respond with appropriate marketing

strategies that satisfy the different preferences of each chosen segment.

Segments based on Income

Plasma: Income group of more than 50,000

LCD: Income bracket of Rs 20,000 and above

Slim: Consumer in the income bracket of Rs 9000-15000

Flat: Consumer in the income bracket of 7000-12000

Conventional: income bracket of Rs 3000-6000


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Segments based on social class

Plasma: rich class

LCD: upper middle class and rich class

Slim: middle class

Flat: middle and lower middle class

Conventional: lower economic class.

Benefit Segmentation:

Conventional, Flat screen Slim, LCD, and Plasma can also segmented on the basis of benefits

that an end consumer would receive from them.

User Status:

TV market can be classified into non users of TV and potential users in term of graduating to

a higher segment like slim, LCD,Plasma from basic conventional TV.

Loyalty status:

On the basis of Loyalty status

Hardcore Loyal: brand loyal to Videocon for a long time in terms of purchasing products of

VideoconShifting Loyal: who shift loyalty from other brands to another

Switchers: not loyal to any brands so attract them to Videocon and convert they brand loyal.

TARGETING:

Once the firm has identified its marketing-segment opportunities, it has to decide how many

and which ones to target. Marketers are increasingly combining several variables in an effort

to identify smaller, better-defined target groups.

The decisions involved in targeting strategy include:

* Which segments to target?

* How many products to offer

* Which products to offer in which segments

In premium segments like flat screens and FDPs the growth in sales has been many times the

industry growth. More importantly, high end product sales are no longer restricted to metros.

Consumer in tier-2 cities seems to be as evolved in lifestyle needs. The consumer profile, too,


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has changed. Higher disposable incomes, greater aspirations and younger demographic have

increased demands for the technologies. And Videocon is targeting this segment.

POSITIONING:

Positioning has come to mean the process by which marketers try to create an image or

identity in the minds of their target market for its product, brand, or organization. It is the

'relative competitive comparison' their product occupies in a given market as perceived by the

target market.Once the competitive frame of reference for positioning has been fixed by

defining the customer target market and nature of competition, marketers can define the

appropriate points-of-difference and points-of parity associations.

Points of Parity (POPs) are associations that are not necessarily unique to the brand but may

in fact be shared with other brands. They represent necessary-but not necessarily sufficient-

conditions for brand choice.

Videocon's Points-of-Parity are good quality Picture and good sound.

Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with a

brand, positively evaluate, and believe that they could not find to the same extent with a

competitive brand.

Videocon's POD is the quality product with low cost.

With the strong backward integration Videocon can provide the products with low cost.

Thus, Videocon is positioned itself as a reliable and value-for-money

product

DISTRIBUTION CHANNELS IN THE INDUSTRY

The Refrigerator companies in the industry use different distribution channels to reach the

customer. These are as follows:

1. In this type of channel the company uses its sales representatives to deal with the dealers

directly. The dealers place the order through the sales representatives who visit them

periodically, and the products are delivered directly from the company.

Some companies appoint Direct Dealers who act as their Franchisee Outlets or their

Exclusive showroom.


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2. In this channel of distribution the company appoints distributors on the basis of District/

Population /No of Dealers to be handled by one distributor. The area of operation and its

potential is also taken into consideration.

Some of the companies make the distributor totally responsible from appointing the dealers to

providing after sales service.


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3. In this channel of distribution the company appoints Distributors as well as Direct

Dealers. The company appoints distributors to deal with small dealers who order small

quantities. With the dealers who have good potential and sales the company deals directly.

The Korean Multinational follow this channel where they appoint Distributors for upcountry

towns and direct dealers for big cities and major towns eg. Ahmedabad.


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4. In this channel the company appoints a C&F agent who acts on behalf of the company.

The C&F agent is totally responsible for appointment of Distributors and Direct Dealers. He

sells to both the Distributors and the Direct Dealers at the same rates.

PROMOTION STRATEGIES

Product strategy

1. Stop all curved CPT production

2. Shift focus to LCD CTVs; target: by December 2007.

3. Launch Slim21 and focus Slim 29 immediately. Target is to have almost all CRTs

production shifted to Slim by 2007

4. Take full advantage of Digital and HDTV revolution, gain leadership in HDTV Slim

TV segment through OEM and model mix worldwide strategy.

5. Study unique product range / pro large to fill market gaps in markets such as Asia and

Eastern Europe / CIS / South America

6. Focus on reduction of costs through reduction of glass, shift to AK mask and

reduction of process rejection.

Sales Strategy

1. Improve relationship with existing clients ; Use of Thomsons excellent relations as

preferred supplier to maximize sales

2. Improve service and quality without putting pressure on price structure

3. Fetch a better price and avoid crisis of huge stock.

4. Leverage Slim product offering

5. Launch LCD panels assembly to be a major actor of the Flat Panel Displays market

(which is expected to account for 50% of the market by 2012).

6. Benefit from OEM CTV business with the help of Videocons CTV division, invest

for new models, introduction of new technologies.

7. upgrade to LCD's schemes


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y easy EMI.

y Re. 1 offer.

8. Improve after sales service

9. Free service camp on the wheels.

Industrial Strategy

1. Consider improvement in production lines set-up: investments, line speed up /

mergers? Target is to increase output and decrease product costs by increasing

productivity of existing lines

2. This will reduce manpower and overheads per picture tube by 30% that will be

redeployed on new activities in the sites (new technologies)

3. Improve the furnace output in the Poland Glass factory by making some changes into

furnaces including electrical boosting. Consider increasing capacity through one morefurnace.

4. t is envisaged that 100m will be invested in the next 2 years for this purpose

5. Expand into LCD panels back-end assembly (from buying LCD arrays from big

suppliers like LG, SDI, CMO, AUO, Sharp)

Cost Strategy

1. Leverage the strong base of Videocons glass business: Thomson-Videoconpartnership will have a very strong negotiation position and can reduce impact of glass

pricing volatility.

2. Reduce production cost by upgrading and improving the production lines. Thomson-

Videocon partnership will have its own base of additional 4 million units CTV (other

than India)

3. Necessary to rationalize R & D efforts, necessary to make its cost below 1.5% of sales

Product Development

1. i-TV web enabled TV at the price of 13,900 with exchange offer for an older

version.

2. TVs With hard disk to store programs.

3. Wall mounted Flat CTVs at the price of 12,990.

4. Aimed at fulfilling needs of customer who can not buy LCDs but prefer to do away

with CTV models which occupy space in living rooms.


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5. CTVs with inbuilt set top box

6. Tie up with DTH player and provide annual subscription offer.

7. to provide Direct to home services.

8. Bluetooth enabled CTV.


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CHAPTER 4: FINANCIAL ANALYSIS:-

1.Sources of finance.2.Ratio analysis Any 5.3.Net profit/balance sheet (from annual report) Analyses.

Cash Flow of Videocon industries

------------------- in Rs. Cr. -------------------

Sep '05 Sep '06 Sep '07 Sep '08 Sep '09

15 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 451.83 913.67 1082.90 1294.78 578.34

Net Cash From Operating

Activities

-

1792.991351.72 1133.68 -1193.44 647.41

Net Cash (used in)/from

Investing Activities

-

4492.92-2843.94 -1268.50 -1909.68 -1018.71

Net Cash (used in)/from Financing

Activities7681.64 1232.47 -112.33 2602.30 481.53

Net (decrease)/increase InCash

and Cash Equivalents1395.73 -259.76 -247.15 -500.82 110.22

Opening Cash & Cash Equivalents 0.28 1396.01 1136.26 889.11 388.28

Closing Cash & Cash Equivalents 1396.01 1136.25 889.11 388.28 498.51


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INCOME STATEMENT

Income Statement

30-Sep-

09(12)

30-Sep-

08(12)

30-Sep-

07(12)

Profit / Loss A/C Rs mn 10% Rs mn 10% Rs mn I0%

Net Sales (10) 91630.41 100.00 97536.54 100.00 82854.24 100.00

Material Cost 56268.43 61.41 52933.45 54.27 49300.08 59.50

Increase Decrease Inventories -124.47 -0.14 -22.98 -0.02 -318.74 -0.38

Personnel Expenses 1264.23 1.38 1158.18 1.19 1161.28 1.40

Manufacturing Expenses 8313.37 9.07 13496.32 13.84 2593.66 3.13

Gross Profit 25908.85 28.28 29971.57 30.73 30117.96 36.35

Administration Selling and

Distribution Expenses8330.43 9.09 6698.91 6.87 12863.34 15.53

EBITDA 17578.42 19.18 23272.66 23.86 17254.62 20.83

Depreciation Depletion and

Amortisation5771.52 6.30 6602.07 6.77 5017.83 6.06

EBIT 11806.90 12.89 16670.59 17.09 12236.79 14.77

Interest Expense 6363.61 6.94 4011.03 4.11 3106.51 3.75

Other Income 340.15 0.37 288.22 0.30 1663.62 2.01

Pretax Income 5783.44 6.31 12947.78 13.27 10793.90 13.03

Provision for Tax 1040.00 1.13 3119.58 3.20 2312.14 2.79

Extra Ordinary and Prior Period

Items Net0.00 0.00 -1278.10 -1.31 0.00 0.00

Net Profit 4743.44 5.18 8550.10 8.77 8481.76 10.24

Adjusted Net Profit 4743.44 5.18 9828.20 10.08 8481.76 10.24

Dividend Preference 36.81 0.04 36.81 0.04 36.81 0.04

Dividend - Equity 0.00 0.00 0.00 0.00 803.02 0.97


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Balance sheet

Balance Sheet of Videocon Industries -------------Rs in crore----------

Sep ' 09 Sep ' 08 Sep ' 07 Sep ' 06 Sep ' 05

Sources of funds

Owner's fund

Equity share capital 229.41 229.30 220.95 220.84 206.53

Share application money 95.00 - - - 65.24

Preference share capital 46.01 46.01 46.01 46.01 -

Reserves & surplus 6,929.63 6,538.49 5,357.91 3,847.63 3,420.56

Loan funds

Secured loans 6,735.04 4,401.25 3,343.50 3,608.39 2,776.10

Unsecured loans 2,349.51 3,604.34 1,916.14 1,352.80 473.47

Total 16,384.59 14,819.39 10,884.50 9,075.67 6,941.90

Uses of funds

Fixed assets

Gross block 9,004.95 8,947.78 8,083.16 7,127.93 5,578.62

Less : revaluation reserve - - 53.52 924.57 951.84

Less : accumulated depreciation 4,298.83 4,310.63 3,376.67 2,847.09 2,286.77

Net block 4,706.12 4,637.15 4,652.98 3,356.27 2,340.00

Capital work-in-progress 1,314.15 1,289.52 612.98 608.28 699.23

Investments 3,064.90 2,695.59 2,092.50 1,781.17 338.79

Net current assets

Current assets, loans & advances 8,820.90 7,641.68 5,142.49 4,425.46 4,449.32

Less : current liabilities & provisions 1,521.48 1,444.55 1,616.44 1,095.51 885.44

Total net current assets 7,299.42 6,197.13 3,526.05 3,329.96 3,563.88

Miscellaneous expenses not written - - - - -

Total 16,384.59 14,819.39 10,884.50 9,075.67 6,941.90

Notes:

Book value of unquoted investments 3,056.96 2,524.79 1,906.24 1,618.68 321.18

Market value of quoted investments 10.83 214.72 230.38 94.13 51.79

Contingent liabilities 122.93 178.17 112.59 81.65 207.72

Number of equity sharesoutstanding 2294.07 2294.51 2210.94 2209.86 2065.26


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(Lacs)

SOURCES OF FINANCE IN THE COMPANY

Equity share capital, Preference Share Capital and Loan Funds are divided into Two parts :

1. Secured Loans

2. Unsecured Loan

In September 5 Company Equity Share capital is 266 and it continuously increasing in

subsequent date of this month, but company does not increasing Preference Share Capital, it

is constant in subsequent date of this month. Company is also increasing their Secured and

Unsecured Loan. Company taking secured Loan on September 05 was 277.10, but it showed

a large increase in September 09, it increased by 233.79. Secured Loan also increasing in

September 05 to September 08, but in September 09 it is decreased by 1245.83

FINANCIAL RATIOS

Key Financial Ratios ofVideocon Industries

------------------- in Rs. Cr. -------------------

Sep05 Sep'06 Sep '07 Sep '08 Sep '09

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 2.50 3.50 3.50 1.00 2.00

Operating Profit Per Share (Rs) 41.44 60.65 75.63 104.26 81.69

Net Operating Profit Per Share (Rs) 264.3 326.66 374.75 425.09 399.42

Free Reserves Per Share (Rs) 151.7 161.05 231.68 274.10 285.35

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios


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Operating Profit Margin (%) 15.67 18.56 20.18 24.52 20.45

Profit Before Interest And Tax Margin

(%)9.74 11.65 15.00 17.62 14.11

Gross Profit Margin (%) 12.25 16.90 17.14 17.75 14.15

Cash Profit Margin (%) 13.60 17.73 15.24 17.50 11.51

Adjusted CashMargin (%) 14.78 15.21 14.10 17.50 11.51

Net ProfitMargin (%) 7.78 11.14 10.23 9.99 4.35

Adjusted Net Profit Margin (%) 8.95 8.62 9.10 9.99 4.35

Return On Capital Employed (%) 8.23 10.83 12.17 12.17 8.08

Return On Net Worth (%) 11.58 19.89 15.20 14.45 5.54

Adjusted Return on Net Worth (%) 13.50 15.48 13.56 15.59 6.66

Return on Assets Excluding

Revaluations4.87 7.38 252.33 294.96 312.07

Return on Assets Including

Revaluations5.46 8.05 254.75 294.96 312.07

Return on Long Term Funds (%) 8.63 11.28 12.94 12.71 8.31

Liquidity And Solvency Ratios

Current Ratio 3.17 2.43 1.76 2.82 3.94

Quick Ratio 4.03 2.81 2.15 4.14 4.62

Debt Equity Ratio 0.90 1.23 0.95 1.19 1.28

Long Term Debt Equity Ratio 0.82 1.14 0.83 1.10 1.23

Debt Coverage Ratios

Interest Cover 2.62 4.35 4.27 4.50 2.08

Total Debt to Owners Fund 0.90 1.23 0.95 1.19 1.28

Financial Charges Coverage Ratio 3.64 5.76 5.17 5.71 2.86

Financial Charges Coverage Ratio Post

Tax4.05 6.11 4.78 4.80 2.47

Management Efficiency Ratios


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Inventory Turnover Ratio 6.30 5.65 6.00 6.44 5.32

Debtors Turnover Ratio 10.94 6.83 6.82 6.73 5.57

Investments Turnover Ratio 6.49 5.83 6.25 6.44 5.32

Fixed Assets Turnover Ratio 3.47 2.07 1.81 1.10 1.02

Total Assets Turnover Ratio 0.79 0.80 0.76 0.66 0.56

Asset Turnover Ratio 0.98 1.02 1.03 1.10 1.02

Average RawMaterial Holding 87.69 76.52 68.44 76.52 83.60

Average Finished Goods Held 18.69 17.48 16.55 15.71 16.13

Number of Days In Working Capital

293.7

1 166.06 153.21 228.73 286.78

WORKING NOTES:

CURRENT RATIO =CURRENT ASSETS / CURRENT LIABILITY

2005 4449.32/885.44= 5.02

2006 4425.46/1095.51= 4.03

2007 5142.49/1616.44=3.18

2008 7641.68/1444.55=5.29

2009 8820.90/1521.48=5.79

LONG TERM DEBT EQUITY RATIO:

LONG TERM DEBT EQUITY RATIO = DEBT / EQUITY

2005 6941.90/206.53= 33.61

2006 9075.67/220.84=41.09

2007 10884.50/220.95=49.26

2008 14819.39/229.30=64.62


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2009 16384.51/229.41=71.42

DEBT EQUITY RATIO = SECURED LOAN + UNSECURED LOAN

2005 2776.10 + 473.47 = 3249.57

2006 3608.39 + 1352.80 = 4961.19

2007 3343.50 + 1916.14 = 5259.64

2008 4401.25 + 3604.34 = 8005.59

2009 6735.04 + 2349.51 = 9084.55

QUICK RATIO:

QUICK ASSETS = QUICK RATIO =

CURRENT ASSSTS STOCK QUICK ASSETS/CURRENT

LIABILITY

2005 4449.32-0= 4449.32 2005 4449.32/885.44=5.02

2006 4425.46-0=4425.46 2006 4425.46/1095.51= 4.03

2007 5142.49-0=5142.49 2007 5142.49/1616.44=3.18

2008 7641.68-0=7641.68 2008 7641.68/1444.55=5.29

2009 8820.90-0=8820.90 2009 8820.90/1521.48=5.79

Proprietary ratio = Shareholder funds/Total assets

2005 206.53/6941.90=0.0297

2006 220.84/9075.67=0.0243

2007 220.95/10884.50=0.0202

2008 229.30/14819.39=0.0154

2009 229.41/16384.59=0.0140


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In 2005 current ratio is 5.02 but it decreased in 2007-2008. It shows that a low ratio

indicates that the enterprise may not be able to meet it current liabilities on time and

inadequate working capital, but it is increasing in September 2008-2009 which shows the

other hand, a high ratio indicates fund are not used efficiently and are lying ideal. It indicates

poor investment policies of the management. The current ratio thus, through a good light on

the short term financial position and policy of a firm.

In 2005 debt equity ratio is 3249.57, but it is increasing in September 2008-2009

which shows this ratio is sufficient to assess the soundness of long term financial position. It

also indicates the extend to which the firm depend upon outsider for its existence. In other

words, it portrays the proportion of total fund acquired by the firm by way of loans.

In 2005 quick ratio is 5.02, but it is decreasing in 2007-2008, it shows that the high

liquidity ratio compared to current ratio may indicate under stocking while a low liquidity

ratio indicates overstocking,but it is increasing September 2008-2009 which shows quickratio

is considered a better measure to judge the short term financial position of the business as

compared to current ratio.

In 2005 proprietary ratio is 0.0297 but it is decreasing in 2007-2008 a high ratio

indicates adequate safety for creditor. But a very high ratio indicates improper mix of

proprietor fund s and loan funds, which results in lower return investment it is so because on

loan fund, interest is deductible as an expense and thus, the enterprise does not pay income

tax thereon. As a result, it yields higher return investment. A low ratio, on the other hand ,

indicate inadequate low safety cover for the creditors.


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CHAPTER 5: KEY LEARNINGS FROM THE COMPANY AND

RECOMMENDATIONS:-

1.Performance Analysis of the Company.2.Market share/growth rate of company.3.

SWOT Analysis of the Company.

Analysis of Net Profit

EARNINGS: Videocon, July- September net profit Rs.1.6 bln, up 7% on year Videocon

Industries Ltd Thursday reported net profit of Rs. 1.6 billion for Jul-Sep, up 7.14% from a

year ago.In a news release, the company said its net sales in the quarter were Rs. 29.85

billion, up 14% from a year ago.Total expenditure for the quarter stood at Rs. 25.95 billion,

up 14.7% from a year ago.Raw material cost expanded 17.6% to Rs. 10 billion and employee


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cost stood at Rs. 499.4 million, up 47.8% from a year ago.Revenue from the consumer

electronics and home appliances segment was at Rs. 27.31 billion, up 18.6% from a year ago

and revenue from crude oil and natural gas segment was down 20.3% at Rs. 2.54 billion.The

company said it has extended its current accounting year by three months and thus the current

year will be of 15 months beginning Oct 1, 2009 and ending Dec 31, 2010.

Profit loss account


Income

Operating income 9,163.04 9,753.65 8,285.42 7,218.82 5,460.25

Expenses

Material consumed 5,614.40 5,291.05 4,954.79 4,162.74 3,070.27

Manufacturing expenses 773.74 1,285.85 988.23 986.28 916.22Personnel expenses 126.42 115.82 105.35 94.70 49.53

Selling expenses 550.04 505.07 470.62 412.12 360.47

Adminstrative expenses 224.47 163.62 94.21 222.71 207.96

Expenses capitalised - - - - -

Cost of sales 7,289.07 7,361.40 6,613.19 5,878.56 4,604.44

Operating profit 1,873.97 2,392.25 1,672.24 1,340.26 855.81

Other recurring income 27.39 71.92 71.55 127.21 35.66

Adjusted PBDIT 1,901.37 2,464.18 1,743.79 1,467.47 891.47

Financial expenses 665.75 431.86 337.17 254.75 244.96


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Depreciation 577.15 660.21 418.39 484.00 320.15

Other write offs - - - - -

Adjusted PBT 658.46 1,372.11 988.23 728.72 326.36

Tax charges 177.68 312.67 227.68 95.16 -166.03

Adjusted PAT 480.78 1,059.43 760.55 633.56 492.40

Non recurring items -80.12 -205.14 94.67 -139.82 -152.50

Other non cash adjustments 73.68 0.72 3.54 0.30 2.36

Reported net profit 474.34 855.01 858.76 494.04 342.26

Earnigs before appropriation 2,536.34 2,306.65 1,696.84 932.95 602.36

Equity dividend 46.25 22.95 80.30 77.35 55.19

Preference dividend 3.68 3.68 3.68 3.39 2.50

Dividend tax 8.49 4.53 14.27 11.32 8.09

Retained earnings 2,477.92 2,275.49 1,598.59 840.89 536.58

Profit and Loss account of this firm show that operating income of this firm is

increasing. It was 5460.25 in Sept 2005, but on Sept 2006 it increasing to 7218.82. This

increase shows the growth of this firm. On the other hand, expenses Sept 2005 is 3070.27 Rs.

it was also increasing to 4162.74. But expense of this firm continuously increasing on the

other hand operating income increasing in Sept 2008- 2009 by 590.62.it show that firm

growing rate falling. In short we can say that firm expenditure rate is more than income rate.

it shows that firm is doing strongly in the market.

Throughout the balance sheet

the firm mainly source of firm money is secured loan because it is increasing continuously, it

was 2776.10 on Sept 2005 but in Sept 2006 it was 3608, it means firms large amount of

money arrange from secured loan. Firm is also getting fund from issuing of share capital firm

future power reserve and surplus also increasing it show that increasing rate power. Balance

show the financial position of the firm.


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Market Share and Growth Rate of Videocon

Videocon Industries Ltd

Videocon holds 25% market share in the consumer goods market in India. It is oneof the

largest CPT manufacturers globally, with operations in India, Mexico, and Italy

Videocon, founded in 1985, is today one of the largest corporate groups in India. It is now

venturing into power and telecom. It is one of the largest manufacturers of Colour Picture

Tube (CPT)globally. It has close to 25% market share in home appliances segment in India

and aims to double this business in next five years. Apart from its core businesses, the

company isaiming to grow its power and telecom (handset and services) businesses

aggressively through large scale investments.

Market Share (%) for FY09

Videocon Industries is primarily engaged in two core businesses

y Manufacturing, assembly, marketing and distribution of consumer electronic

products & home appliances

y Consumer Electronics, Home Appliances & Compressor manufacturing: Products

include home entertainment systems,microwave ovens, Colour Picture Tube

(CPT) & liquid crystal display (LCD) televisions, refrigerators, washing machines,

airconditioners, small appliances, glass shells, compressors / motors and other

components

The Company has Research & Development centres located in China, India and Japan

y Display industry and its components: Manufactures colour picture tubes at its

facilities in Italy, Poland and China

y Colour Picture Tube (CPT) Glass: Operates manufacturing facilities in India and

Poland


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The Company, through its wholly owned subsidiaries and JVs, is engaged in exploration

activities in oil & gas fieldsinBrazil,Mozambique, East Timor, Oman and Australia

y Entry into the Telecom business: In March 2010, Videocon Telecommunications Ltd,

a unit of Videocon Industries Ltd, launchedmobile services based on the global system

mobile (GSM) platform

y Power business: Pipavav Energy, the Companys subsidiary, is implementing a

thermal power project in Gujarat with a capacityof 1,200 MW; Videocon is also

considering power projects in the other parts of India and evaluating alternate

technologies forthe same.

y Plans to set up three more thermal power generating units with a combined capacity of

4,800MW in Maharashtra,Chhattisgarh and Asansol, with a total investment of

USD6.5bn

y The equity shares of the Company are listed on the Bombay Stock Exchange and

National Stock Exchange of India; the Global DepositoryReceipts (GDR) and

Foreign Currency Convertible Bonds (FCCB) issued by the Company are listed onthe

Luxembourg Stock Exchange and Singapore Exchange Trading Securities

respectively

Company


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SWOT ANALYSIS

The SWOT is a strategic planning tool to evaluate Strength(S) Weakness(W)

Opportunities(O) & Threats(T) involved in a project, in a business venture or in any other

situation requiring a decision. The SWOT analysis is to explained with help of following

diagram

SWOT Analysis

Strengths:

y Technologic

al skills

y Leading

Brands

y Distribution

Channels

y Customer

Loyalty/ Relationships

y Production

Qualtiy

y Scale

y Managemen

t

Weaknesses:

y Absence of

important skills

y Weak

brands

y Poor access

to distribution

y Low

customer retention

y Unreliable

product/ service

y Sub-scale


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y Managemen

t

Opportunities:

y Changing

customer tastes

y Technologic

al Advances

y Change in

government politics

y Low

personal taxes

y

Change inpopulation age

y New

distribution channel

Threats:

y Changing

customer base

y Closing of

geographic markets

y Technologic

al advances

y Changes in

government politics

y Tax

increases

y Change in

population age

y New

distribution channels


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CHAPTER 6: Findings

FINDINGS


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With strategically located manufacturing bases and an enviable distribution network of

around 90 branch offices, 10,000 distributors & 400 after-sales service centers across India,

VIL enjoys a unique 80% plus penetration in the market place.

A high degree of backward integration ensures that VIL has most of the vital components

under its control and bestows upon it unique benefits over competition uninterrupted

supply, shorter turnaround time, cost advantage and quick adaptation to changing customer

needs.

VIL is looking to strengthen its presence through a host of big ticket acquisitions/asset

buyouts Daewoo Electronics (South Korea), Chunghwa Picture Tubes (Taiwan), Pioneer

(Japan) and other brown-field expansions will help VIL expand its horizons.

VILs glass division, VNG, is the largest single location glass shell plant, enjoying economies

of scale and a leading position in the global glass shell industry. Additionally, integration of

its acquired Thomson Colour Picture Tube (CPT) plants with its Indian business would not

only reduce the cost of production, but also give its glass shell units a ready market.

The Thomson acquisition includes R&D centres and access to over 2,000 patents, which

would enable VIL to launch new products as well as counter the threat posed by the

conventional TV market being rapidly overtaken by hi-tech products in overseas markets.

Increasing demand & high prices in the oil & gas industry will not only lead to improved

realizations, but along with low operating costs that the Ravva oil & gas field enjoys, it can

translate into a bonanza for VIL.

VIL has earmarked USD 13 MM (FY07) & USD 24 MM (FY08) as capex for its oil & gas

business, in order to increase the extraction from the field. It has also embarked upon Infill

Well Drilling and exploration & production of three new blocks; LM-403, Back Fault Block

& LO-110, all in the Ravva field. The probable reserves in the Ravva Oil field are estimated

to be as high as 400 MM barrels, of which only about 160 MM barrels have been produced.

Thus, a huge upside potential exists for the company.

VIL is exhibiting substantial panache by fruitfully working towards bidding for and more

often than not, attaining exploration and production rights in many countries around the

world. It is well on its way to earning remarkable profits & achieving a prominent global

standing.

CHAPTER 7: Conclusions and Suggestions

CONCLUSIONS AND SUGGESTIONS


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Turbulent is the word that aptly describe the scenario in CTV industry last financial year.

Marketers by frequent price cuts and larger than live Marketing game plans, competition

reached its new highs and lows. It is no longer sufficient to just be competitive, a company

which has to survive has got to have competitive advantage. One needs to take strategic

initiative in the short run to achieve the desired positioning in future. One has to foresee

tomorrow.

Understanding competition today involves three levels:

Competition for intellectual leadership for new ideas that create new advantages.

Competition for translating these ideas into product/service faster than others.

Competition for market share.

Do not nature any PARADIGMS because today anything is possible

Search for newer markets than expanding your customer base.

Come out with state of the art, feature packed affordable and competitive advantageous

products.

Set Benchmarks for growth.

Improve up on distribution channels for viable coverage of the market.

Wear out competition through trend setting, inimitable tactical moves based on our

infrastructure strengths.

The strategic intent should be clear down the management.

Work on your strengths i.e. Infrastructure, financial base, backward integration.

POP andMERCHANDISING material should be mad as per international market.

CORPORATE TRAINING PROGRAMME for Development of manpower from external

faculty.

We have so far identified the various areas on which Videocon and other major Indian

companies need to improve upon to achieve the desired level of competitiveness. Only these

improvements would give Videocon and the other Indian companies base to compete with the

MNCs and help the Indian companies to reduce the impact ofMNCs on the Indian Market in

the future. Indian manufacturers will have to react quickly because any delay in reacting to

the threat posed by the MNCs would only give the MNCs time to establish themselves in the

market. With their expertise and financial capacity they would be nearly impossible to

compete with once they get a firm foot hold in the market. The future

But the battle has only started, and the foreign companies are here for the long term. They can

sustain losses for years to come in order to gain market share. What they are doing at present,


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is building up distribution networks to cover every nook and corner of the country and,

setting up manufacturing facilities.

Only those Indian manufactures which have a strong focus on manufacturing and

technological up gradation will survive in the long run, although with a much smaller market

share than they have at present. Small companies will be sidelined totally and will exit from

the CTV market altogether.

Videocon has always been driven by its Value -for-money strategy. The company needs to

identify critical success factor and work assiduously towards achieving it.

SUGGESTIONS

To strengthen and maintain & its leadership status, the Videocon group has clearly charted

out its course for the future. Aggressive development is in full swing at the R & D Centres to

bring out state-of-the-art technologies including True Flat, Slim, Extra Slim, Plasma & LCDs,at the earliest. Cost rationalization processes - are in various stages - including rationalizing

factories in Europe, increasing automation and improvement of efficiency in China, accessing

flass shells from India for international CPT facilities and a lot more - are in various stages of

implementation Internationally all existing client relationships are being strengthened. The

cost competitiveness and increase in capacity in Polland has opened up big opportunities in

the OEM business. Last but not the least, in the domestic market consolidation with multiple

brands paves the way for an unassailable lead in the market.

In the Oil & Gas business, having all the basic operator capabilities of a prospecting entity,

the group is looking to add more explorations and production depth as also oil bearing assets.

The group will also get into gas distribution in India significantly.


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y BIBLOGRAPHY

y http://en.wikipedia.org/wiki/Videocon

y http://www.videoconworld.com/

y http://www.google.co.in/

y www.branders.com

y www.viewcentral.com

y www.eventmarketer.com

y www.mobilemarketingjoblist.com

55081127 videocon project

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