Selloff mode

New Delhi, April 11 (PTI): Diversified conglomerate Videocon Industries is understood to be making moves to acquire the consumer electronics business of Philips India.

This, however, does not include Philips India’s lighting and healthcare products businesses.

When contacted, Videocon group chief Venugopal Dhoot declined to comment.

The spokesperson for Philips India said, “We do not comment on speculation.”

Sources, however, said if the acquisition took place, it would help Videocon expand in home appliances as Philips was a popular brand in the segment.

Other products include LCD television sets, DVDs, home theatres and audio systems.

Philips, the Netherlands-based consumer durables company, which has been operating in India for more than 80 years, had said it was shifting its focus on healthcare and lifestyle segments.

“Voluntarily, we have taken a position that Philips as a company will be working towards projecting itself as a health and wellness company,” Philips Electronics India managing director and CEO Murali Sivaraman had said last year.

The company is now focusing more on the lighting and healthcare segments. In lighting, it already has a 35 per cent market share.

Videocon was recently unsuccessful in acquiring Finland-based consumer electronics maker Elcoteq.

Last September, both the companies had announced the signing of a non-binding letter of intent to negotiate and finalise a potential definitive transaction agreement.

In 2007, Videocon’s attempt to acquire Korean consumer electronics firm Daewoo for $700 million also did not fructify.