The USD 16.5-billion Chinese electronics major, has made a pitch for the Videocon brand as the resolution professional (RP) of the debt-laden Indian company invites buyers to take control of the firm.
The interest from TCL comes at a time when the Chinese company has laid out detailed plans for a major expansion in India, which includes setting up a factory in Bengaluru for TVs, air-conditioners, washing machines, refrigerators and smartphones.
“We are evaluating, and analyzing the Videocon brand. We have expressed interest,” Mike Chen, country manager for TCL in India.
Videocon group is believed to be saddled with a debt of around Rs 20,000 crore, and the RP has been appointed by the National Company Law Tribunal (NCLT).
Chen said that TCL sees India as a “strategic market” and will be expanding its operations here. “We will begin production of TVs at Bengaluru in late 2019, and thereafter decide on entering new categories in white goods.” TCL had re-entered India in 2016 after having quit the market over not-so-healthy operations. Apart from home market China, the company’s sales of TVs have been growing very strongly in key western markets such as the US and France.
Although TCL is keen to acquire Videocon’s brand name, it does not intend to take charge of the Indian co.’s production facilities. – The Times Of India