This is the case study of explain that how the company has been failure for not making a profit over the and this is the classic example how the other companies must be getting not getting this problems and rectifying this in a initial stages lead to not bankrupt of the company so here the bankrupt rever so the failure of the bank and loans which they have been got from the ICSE so in this PPT we will be looking at the failure of Videocon company view so that company they are the first conglomerate company to start this strategy in India the released pipe company which have been started in the name of agaram trading limited and later converted into Videocon and now they have been manufacturing first collect televisions and this is the first company to introduce in the Indian market and they made a profit around the 90000 and their share price in the market was 250 in the 2005 it was used among comparing to now and the market went down to 20% which made the bankrupt so this made the bank to shutdown in the year 2012 company officially announce the company has been setting over and the people and not given with the provident fund or

1. CaseStudyAnalysis
 By Group 3:-
 R.Mourian
 S.Kiran kumar
 R.Pradeep kumar
 Mohammed yahya

2. SimpleTable
ofContents for
PowerPoint
01
02
03
Company Overview
About Videocon
Timeline of Videocon
Business Segment
Videocon Segment offered in
Market
Fall of The Brand
04
05
06
Financial Analysis
Strategies
Business Strategy
Models
PESTEL
SWOT Analysis
Value Chain
Porter Five Forces
Flow of Presentation

3. Videocon Overview
About Videocon
Type Public
Industry Conglomerates
Founder Venugopal Dhoot
Headquarters Mumbai
Product Consumer Electronics,
Telecommunication, DTH,
Petroleum, Retail
Founded 1986
Number of international
Location
China, Poland, Italy, Mexico
Number Manufacturing Sites in
India
17
Mission Statement
To delight and deliver beyond expectations
through ingenious strategy, intrepid
entrepreneurship, improved technology,
innovative products, insightful marketing and
inspired thinking about the future

4. TimeLine
Videocon establish it Venture
Videocon acquires entire stake of Electrolux India
Videocon Industries enters into MoU with GAIL
Videocon Industries has bought Planet M, the music and entertainment retail arm of media house Bennett, Coleman & Co.
Videocon set to roll out telecom service in India
Videocon announces New Natural Gas Discovery Offshore Mozambique
Videocon announces Sale of Spectrum for 2 Circles to Idea
1986
2005
2006
2007
2008
2011
2015

5. Business Segment
Videocon
Consumer
Electronics
Mobile Phone DTH Telecommunication Retail Petroleum

6. Videocon Telecommunication LTD
• An Indian cellular service provider that offered GSM mobile services in India under the brand name
Videocon.
• Videocon launched its services on 7 April 2010 in Mumbai
• Videocon held licenses to provide mobile services in 18 out of 22 telecom circles of India
• In 2008 During the 2G Spectrum Case the Supreme Court cancelled 122 licenses issued, including 21
licenses belonging to Videocon.
• In the 2012 spectrum auction, Videocon won back licenses in 6 circles.
• In 2016 Videocon sold its spectrum in all six circles it operated in to Bharti Airtel for ₹4,428 crore
Videocon Petroleum
• In 1990 Videocon diversified into oil and gas
• In 2000 they acquired stake in hydrocarbon blocks in Brazil, Australia and Indonesia
• In 2013, they made loan repayments by selling gas assets in Mozambique for $2.5 billion

7. Videocon Electronics
• Videocon sells consumer products like colour televisions, washing
machines, air conditioners, refrigerators, microwave ovens and many
other home appliances
• Videocon TV ranks 7 in India as the most Trusted Brand.
• Videocon Refrigerators are ranked 56 as the Trusted Brand.
Videocon D2H
• In 2009, Videocon launched its DTH product and introduced first radio
frequency remote in India, Videocon offered LCD & TVs with built-in
DTH satellite receiver with sizes 19" to 42“
• Videocon D2H is 3rd ranked DTH services Provider.
Televisions
DTH
Source – Brand Trust Report 2019

8. Videocon Retail
• Videocon owns three retail brands : Planet M, DigiWorld and Next.
Videocon Mobile
• In November 2009, Videocon launched its new line of mobile phones. Videocon has, since
launched a number of handsets ranging from basic color FM phones to high-end Android devices.

9. How Videocon fell from grace and into
insolvency
 Despite the diversification, consumer durables was still the largest
contributor to Videocon's top line.
 In the early 2000s, the company launched a major expansion drive,
diversifying from its core business — consumer electronics — into a raft of
sectors such as oil and gas, telecom, retail and in DTH services.
 This massive diversification led to aggressive borrowing. Soon, debt began
to pile. But the company's capacity to pay off the debt started
deteriorating over the years as the new businesses were capital intensive
and were not generating enough money.
 Despite the diversification, consumer durables was still the largest
contributor to Videocon's top line, but started stagnating with increase in
competition.
Source – CNBC TV 18

10. How Videocon fell from grace and into
insolvency
 The cancellation of license in 2012 in the 2G telecom scam not only
dented the brand but also weighed down its balance sheet.
 They couldn't hold on to their positioning, or leap forward fast
enough to changing technology like LCD and flat panel and customers
saw that
 Videocon also extended unlimited credit lines to dealers, which
would eventually hurt the company because the tap was only
switched off when an account went bad.
 With revenue stagnating and interest cost rising, the company
started making losses and was unable to service its debt.
 In November 2016, Videocon Industries Ltd merged its DTH service
business with Dish TV.
 The company also sold a 10% stake in a gas field off Mozambique to
state-owned Oil and Natural Gas Corp.
 Revenues from the oil and gas business also dropped due to fall in
global crude oil prices during 2015 to 2016.
Source – CNBC TV 18

11. How Videocon fell from grace and into
insolvency
 It also went on to sell its entire telecom business to Bharti
Airtel.
 But these actions did not pay off. The unpaid interest
continued to accumulate and bloat the debt pile further.
 With mounting debt, market capitalization also took a plunge.
Currently, Videocon Industries has more debt than value.
 Just days after Videocon Industries' promoter Venugopal Dhoot
sought a stay at the National Company Law Tribunal to halt
bids for group companies, Chinese electronics major TCL made
overtures to buy the brand even as it chalked out plans to set
up a greenfield operation in Bengaluru for manufacturing all
the products Videocon
Source – CNBC TV 18

12. Financial Analysis
• Debt 2017 – 23000, 2018 – 24500, Loss in 2018 – 5200, 2017- 2000.
• The whopping increase is due to two main reasons: falling revenues and high debt.
• Videocon expanded into oil and gas, telecommunications, and direct-to-home (DTH) TV. However, its main
business of electronic appliances is struggling to make the money required to service the debt.
• Its interest coverage ratio, the ratio of operating profit to the interest payable, is below one, according to Credit
Suisse. Source – Rediff.com

13. Financial Analysis
• The M-Cap as on 24th July was just 0.5 billion.
• Its cash cow consumer electronic segment revenue kept on falling which was not able to finance the debt burden.
• Videocon Industries was admitted by the National Company Law Tribunal (NCLT) for insolvency proceedings in January
2019.
Source – Quartz India

14. Strategies
Business Strategy
Multi Level Strategy
• First company to adopt multi
brand strategy
• From Toshiba, premium brand to
Akai and Sansui, low priced brand
• It was once ahead of Samsung in
market share by approximately 6
%
Backward Integration
• High degree of backward
integration led them to gain
advantage over competition
• Manufacturing of components
like electron guns, metal parts,
deflection yokes for CTVs, plastic
components, glass panels and
funnels for color picture tubes

15. Models
PESTEL
PEST Diagram
for PowerPoint
P E
S T
Technological Factors
Higher quality products
Improved electricity
consumption
Social Factors
Demand for consumer durable is
growing but seasonal
Rise in disposable income
Economic Factors
Growth of retail sector
Players in organized retail market
like Croma, Reliance Digital
Political Factors
Anti dumping duty on
imported color picture
tubes
E L
Environmental Factors
Resolutions to reduce emission of
carbon footprints in the
atmosphere
Legal Factors
Labor union laws affect
manufacturing and
production processes

16. Models
SWOT Analysis - Strengths
• Historically Present Brand: Rich history of presence in the electronics segment-first to secure a license to
make color televisions.
• Presence in diversified sectors: The company has the presence in several sectors such as home appliances,
consumer electronics, digital television, oil & gas, retail, telecommunication and power.
• Wide brand portfolio: under KenStar, Electrolux, Kelvinator, Sansui, Videocon brands.
• Wide distribution network: owning retail stores namely Digiworld (selling its own products) and NeXT
stores.

17. Models
SWOT Analysis - Weakness
• Scaling up of operations: unable to scale up operations in various domains as there is high
competition in each of them, thus reducing profits.
• Over-dependence on oil & gas: a debt-ridden company highly dependent on their oil & gas business
to clear off their debts.
• Investment in unknown business areas: diversified into areas like DTH and insurance and mobile
phones which are not part of their core areas of expertise.
• Tarnished brand image: after it went for Corporate Insolvency Resolution.

18. Models
SWOT Analysis – Opportunity
• New segments: There is a lot of focus on new technology areas like artificial intelligence and
machine learning which are going to lead to new segments like interconnected devices and smart
technologies.
• Expansion to foreign markets: With IoT, the demand for home appliances will increase
and people will want to invest in smart devices. This can create a surge in demand for home
appliances that are based on smart technologies in a global level.

19. Models
SWOT Analysis - Threats
• Increased competition from foreign players: As the company is in diverse sectors, most of them being
highly completive, they face heavy competition locally and globally.
• Government regulations in the DTH sector: TRAI’s new guidelines brought in a new framework of a
basic pack plus A La Carte to offer fair prices to consumers.

20. Inbound Logistics
Retrieving Raw
Material, Storing
Inputs and Internally
Distributing Raw
Material and
Components
Operations
Machining, Packing,
Assembling and
Testing.
Improving
Productivity,
Maximizing Efficiency
and Competitive
Success
Outbound Logistics
Material Handling,
Warehousing,
Scheduling, Order
Processing,
Transporting and
Delivering to the
Destination.
Marketing & Sales
Sales force
Promotion
Advertising
Marketing
Channel Selection
After sales
service
Installation
Customer
Support
Training
Procurement (Equipment, Machinery, Raw Material)
Technology Development (Integration in Production, Distribution, Marketing and HR activities)
Human Resource Management (Recruiting, Training, Rewarding)
Firm Infrastructure (Financing, Planning, Investor relation, Legal Matters)
Primary
Activities
Support
Activities
Margin
Models
Value Chain

21. Models
Porter Five Forces
COMPETITIVE
RIVALRY HIGH
Availability of options and
information to the user.
LOW
Large number of sellers
available.
Availability of cheap
imports from china and
vietnam.
LOW
No substitute for electronics.
MODERATE
Capital intensive industry.
Evolving tech. and loyalty block.
SUPPLIER POWER BUYER POWER
THREAT
OF
NEW
ENTRY
THREAT
OF
SUBSTITUTION
Competitive rivalry is quite high in this sector, as players use innovation and product
differentiation to beat peers.

22. Thank You