Indian consumer goods major Videocon has set its sight on entering the US market in a couple of years, with a possible Nasaq listing, the companyâ€™s chairman said..
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 told PTI.
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 U.S. market through the Mexico route where it already has a plant set up.
With 40 percent of the worldâ€™s market, Dhoot said the firm would not enter the U.S. haphazardly.
In addition, he explained that the company aims to grow through mergers and acquisitions and is eyeing prospects in Europe and the U.S.
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.
Our liquidity position is very good and we have a 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.
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.
The group, which was in the race to acquire the CRT facility of LG Philips in Thailand, had earlier ended talks to acquire the ailing South Korean firm Daewoo Electronics over differences in pricing with the creditors of the latter. For a 97 percent stake in Daewoo, creditors had asked for $730 million with Videocon requesting a 13 percent discount.
Dhoot, said that the deal was called off since there were problems with transfer of technology. He said that the main purpose of acquisitions is getting foreign patents, R&D laboratories and exports.
The acquisition of Daewoo would have provided Videocon a global footprint with its manufacturing facilities in the United States, UK and South Korea.