New Delhi, June 23 :    New Delhi, June 23:  Videocon India has set up a Rs 500 crore unit in Bangalore to manufacture components for colour televisions and refrigerators which will be exported to Europe. The Rs 4,000-crore television and white goods maker aims to assemble the finished products at a facility in Italy and take advantage of the European tax structure which will enable it to market them at competitive prices. The finished products will be marketed under the brandnames that Videocon already uses in India-Akai, Sansui and Toshiba. The manufacturing unit in Bangalore, which became operational last month, will churn out components for half a million colour televisions and same number of refrigerators. Videocon chairman Venugopal Dhoot said, 'We can easily cut down the costs, unlike our competitors, because we make all the components required to produce colour televisions and refrigerators.' 'Since we export the components and assemble the product in Italy, we are getting the benefit of the European tax structure. That has given us a competitive edge in the foreign markets,' Dhoot said. Until now, Videocon used to source the compressors and motors for refrigerators from Necci Compressori SpA of Italy. Videocon has now started manufacturing these components for foreign market also. The company also has its own glass shell manufacturing unit that currently manufactures six million computers. The company is set to double the capacity for PC manufacture by the end of this year. 'Our strategy of multi-branding our products in the local market has paid off as we have been able to increase our market share. Currently, we have more than 20 per cent of the CTV market and 18 per cent of the refrigerator market. But it is the washing machine segment with the Videocon brand name where we enjoy the maximum market share of 50 per cent.'