Dhoot: Looking ahead

New Delhi, July 8 (PTI): The Videocon group is aiming at a three-fold jump in revenues to $10 billion. It is betting big on mergers and acquisitions and is scouting for prospects in Europe and the US.

“We are a $3-billion group now ... We intend to become a $10-billion group. We have a corporate plan and we will realise it in five years,” chairman Venugopal Dhoot said. He said the group’s target would be achieved through mergers and acquisitions. It has already acquired French firm Thompson’s picture tube business and Swiss company AB Elextrolux’s Indian subsidiary.

“Our liquidity position is good and we have $300 million in cash in our balance sheet,” he said. The group could spend as much as $5 billion on mergers and aquisitions, he added. “We are in an acquisition mode because it has many advantages ... It takes you through a fast route. Exponential growth is possible only through mergers and acquisitions,” he said. A team of 20 people is identifying and studying potential targets.

On funding the acquisitions, Dhoot said money was not an issue, but getting a good company was. “After a project is identified, funding is easily available. Indian companies are getting good valuations,” he added.

Dhoot said the acquisitions could be made anywhere. The group is already looking at the US and countries in Europe. “China is also a good place for expansion. But I think the best opportunity is in India, Brazil and Mexico,” he added.

Dhoot said, “Acquisitions enable a company to scale up capacity and gain ownership of technology. For example, when we acquired Thomson, we became the owner of their patents.”

He, however, said Videocon would not buy just for the sake of acquisition. “It depends on how good a project is and the assured long-term profitability and market,” he said.

Videocon recently bid for Korean electronics firm Daewoo and was close to acquiring it before the $700-million deal crashed over differences in pricing with the creditors of the ailing firm.

The group has also been in the news for being in the race to acquire the CRT facility of LG Philips in Thailand. Dhoot, however, declined to comment on the specifics.