Mumbai, July 5: Videocon International and Videocon Industries, the two flagship companies headed by Venugopal Dhoot, are mulling a merger.

The boards of the two companies will meet on July 7 to discuss the proposed merger.

Videocon International makes consumer electronics and appliances, while Videocon Industries is into oil and gas exploration. It has a 26 per cent stake in Ravva oil fields.

The proposal was mooted based on the advice given by leading Singapore based bank DBS and ICICI Securities, chairman Venugopal Dhoot said.

The board will take a decision after considering the proposals by the investment banks, Dhoot said.

According to industry circles, the move will allow Videocon International to dip into the surging cash flows of Videocon Industries, which is reaping the upcycle in the petroleum industry.

“The move will help leverage the cash flows of the petroleum outfit as the consumer durables company will need cash as it expands to other countries,” said an analyst.

Videocon Industries earned more than Rs 1,000 crore last fiscal and is expected to better its performance this year as oil prices move northwards.