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Haier also in the fray for Korea's Daewo
(Ecomonic Times, The (India) (KRT) Via Thomson Dialog NewsEdge) Feb. 23--NEW DELHI -- Videocon is said to be making a pitch for Korea's Daewoo Electronics. Daewoo Electronics operates 16 subsidiaries with 42 branches in over 30 countries. Its product range spans from CTVs -- including top-end segments like LCD & plasma -- to other categories like car audio, DVD & MP3 players, refrigerators, washing machines, air conditioners, microwave ovens and vacuum cleaners. It is a middle-rung player in the global consumer electronics market.
Though dwarfed by the likes of Matsushita, Sony, Samsung, LG, Philips and Hitachi in the global market, Daewoo Electronics has significant brand presence in developed markets like US and Europe. This could be the trigger point for Videocon which has been looking to expand its operations internationally.
If Videocon scripts the deal it would get instant access to developed markets which are otherwise difficult to penetrate with an alien brand. Industry trackers feel that if Videocon goes ahead with the deal, it might opt not to buy the entire manufacturing infrastructure of Daewoo, instead leveraging the group's existing facilities in India and abroad.
Experts add that an acquisition of Daewoo Electronics makes sense either for private equity funds or for a consumer electronics company looking for multiple branding. Given that background, it would be natural that strategic buyers from emerging countries like China or India, looking for a global footprint, would find the deal attractive.
If international media reports are anything to go by, Chinese appliances major Haier has also been approached for a possible acquisition. However, Haier already has an established base in developed markets, like the US, with its own brand and now the big pointer is towards Videocon.
The name also crops up due to the recent mega deals Videocon has struck in both the domestic and international markets. While in the local market it acquired the operations of Electrolux, along with brand rights for the Indian market, in the international market the group acquired the picture tube operations of French giant Thomson.
With the acquisition of Thomson's picture tube plants globally, Videocon already has a manufacturing presence abroad and it is learnt that the group is also retuning some of the units to better utilise the infrastructure by churning out other products, including high-end televisions, apart from picture tubes. Incidentally, Daewoo Electronics' Indian operation, which was being handled by the Anchor Group, is also on the block.
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