Is Videocon an Indian Company? True or Not

It is true that Videocon is an Indian company. Videocon has been an Indian multinational conglomerate established in 1979. The company was a producer of consumer electronics, home appliances as well as mobile phone. The company also had operations in other sectors such as telecommunications, real estate and petroleum and natural gas. Videocon was the largest producer of picture tubes worldwide at one time.

Videocon was a prominent company in the home and consumer electronics appliances market. It sold washing machines, televisions, air conditioning, microwave ovens refrigerators and many more. Videocon also made Android mobile phones as well as DTH services with high-definition. Additionally, Videocon was also engaged in exploration of oil and gas. The company was shut down in the year 2018.

Company History

Videocon Industries Limited was established in 1979 under the leadership of Venugopal Dhoot in Aurangabad located in Maharashtra. The company was initially the producer of white and black set-top boxes for television under the name of Videocon. Videocon introduced televisions with colour within India in the early 1980s. The company then expanded its product line by incorporating VCRs as well as VCPs.

In the early 1990s, Videocon expanded into home appliances, manufacturing refrigerators, washing machines, and air conditioning. Videocon had grown into an established electronic manufacturer by the latter period of the 1990s. Videocon was able to enter the oil and gas industry through the acquisition of 25 percent stakes in Ravva oilfield, located in Andhra Pradesh in 2005.

Videocon began its journey into the telecoms sector with the launch of Videocon Telcommunications in the year 2008. It obtained 2G spectrum licenses and launched DTH services. In 2009., it released Android smartphones.

In 2012, Videocon had captured 20 percent and 25% share in the washing machine and refrigerator market, respectively. Videocon operated 17 manufacturing facilities in India as well as other countries such as Poland, China, Mexico and Italy.

Current Status

Videocon is in an inactive state and financial difficulty. The 13 companies of the group have a debt of approximately 88,000 crore rupees lenders. Videocon’s earnings from the electronic market were reduced by the presence of brands such as Samsung as well as LG. The company’s telecommunications business was a major damaged by it was found guilty by the Supreme Court of India cancelled 2G licenses granted by the firm.

Vedanta Group acquired Videocon in 2021 following an approval from the National Company Law Tribunal. However the NCLT has since withdrawn its resolution plans due to procedural concerns.

Future Outlook

Videocon is now a non-profit entity and its future will depend on the outcomes of the corporate resolution insolvency process. The company could go through liquidation until or unless a new bidder is found.