Research on Videocon LED TV

1. LED Television
-Presented by:
SUVOJIT DAS
MBA

2. 1 | P a g e
Contents
Sector Information....................................................................................................................................3
Introduction...........................................................................................................................................3
Indian GDP From Consumer Durables..............................................................................................5
Historical Growth/ Degrowth Pattern of the sector observed in the last 6 years....................5
The Reasons for the Growth pattern observed in the sector .......................................................5
Porter’s Five Forces Model..................................................................................................................6
Company Information..............................................................................................................................8
History:....................................................................................................................................................8
The Company & The Videocon Group ...............................................................................................9
Competitors’ Analysis.........................................................................................................................10
SWOT Analysis of Videocon...............................................................................................................11
Product & Services offered by the company..................................................................................12
Latest News...........................................................................................................................................14
MARKETING..............................................................................................................................................15
SWOT Analysis of LED Television ....................................................................................................15
Marketing Mix (4P’s)..........................................................................................................................16
Segmentation, Targeting & Positioning (STP)...............................................................................17
Product Life Cycle (PLC).....................................................................................................................19
BUSINESS FINANCE..................................................................................................................................20
1. Gross Profit and Net Profit Margin of the company .............................................................22
2. Direct and Indirect costs of the company...............................................................................22
3. Fixed Assets added during the year.........................................................................................23
4. Working Capital for the year ....................................................................................................23
5. Debt/Equity ratio of the company...........................................................................................23
Human Resource Management.............................................................................................................24
Organizational Structure...................................................................................................................24
Skill Sets required for the company................................................................................................25
Job-Description and Job-Specifications posted on online-job portals......................................25
Recruitment sources of the company .............................................................................................27
Selection Process.................................................................................................................................28
Induction Program..............................................................................................................................29
Types of training provided in the company...................................................................................29

3. 2 | P a g e
Performance Appraisal Model..........................................................................................................30
Employee Benefits ..............................................................................................................................30
Career Planning in the company......................................................................................................31
Organization Culture..........................................................................................................................31
References................................................................................................................................................32

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Sector Informationi
Introduction
Indian consumer segment is broadly segregated into urban and rural markets, and is attracting marketers
from across the world. The sector comprises of a huge middle class, relatively large affluent class and a
small economically disadvantaged class, with spending anticipated to more than double by 2025.
India hit ten-year high and stood first among the 63 nations surveyed in the global consumer confidence
index with a score of 136 points for the quarter ending December 2016.
Global corporations view India as one of the key markets from where future growth is likely to emerge.
The growth in India’s consumer market would be primarily driven by a favorable population composition
and increasing disposable incomes.
By 2020, the electronics market in India is expected to increase to US$ 100 billion from US$ 28 billion in
FY17. The production is expected to reach to US$ 104 billion by 2020. By 2018, the television industry in
India is expected to grow to US$ 11.78 billion from US$ 9.23 billion in 2016, registering a growth of 12.97
per cent.
Investment:
According to the data released by the Department of Industrial Policy and Promotion (DIPP), the electronics
sector attracted foreign direct investment (FDI) worth US$ 1.78 billion between April 2000 and June 2017.
Following are some major investments and developments in the Indian consumer market sector.
 Japan-based imaging major, Nikon, expects India to be one of its top five markets in the world over
the coming 3-4 years as it retains its lead in the DSLR segment and expands its retail presence in
India by adding 10-15 Nikon Experience Zone stores.
 South Korean electronics major, LG, is planning to make India as its export hub, on the back of
improved ties between South Korea and India, as per Mr Ki Wan Kim, Managing Director, LG
Electronics India (LGEI).
 Amazon India has set up seven new warehouses in India, which will be used exclusively for large
appliances and furniture, with an aim to boost the sales of its high-priced products such as
televisions, refrigerators and furniture.
 Dyson, the UK-based manufacturer of innovative vacuum cleaners and air purifiers, plans to enter
Indian consumer market by 2017 and invest GBP 154 million (US$ 190 million) over the next five
years in areas of retail infrastructure, marketing, promotion and taxes to the government.
 AO Smith, a US based water technology and air purification solutions company, sees India as one
of key markets and plans to grow at double-digit growth rate, having invested US$ 75 million so
far.

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Government Initiatives:
 In the Union Budget 2017-18, the Government of India increased the allocation for incentive
schemes like the Modified Special Incentive Package Scheme (M-SIPS) and the Electronic
Development Fund (EDF) to Rs 745 crore (US$ 111 million) for providing a boost to the
semiconductor as well as the electronics manufacturing industry.
 In the Union Budget 2017, the government has proposed to spend more on the rural side with an
aim to double the farmer’s income in five years; as well as the cut in income tax rate targeting
mainly the small tax payers, focus on affordable housing and infrastructure development will
provide multiple growth drivers for the consumer market industry.
 The Union Cabinet has approved incentives up to Rs 10,000 crore (US$ 1.47 billion) for investors
by amending the M-SIPS scheme, in order to further incentivise investments in electronics sector,
create employment opportunities and reduce dependence on imports by 2020.
 The Ministry of Electronics and Information Technology plans to revise its policy framework,
which would involve the government taking a more active role in developing the sector by
providing initial capital, with the aim to attract more private players and make India a global
semiconductor hub.
 The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) under the
automatic route in Electronics Systems Design & Manufacturing sector. FDI into single brand retail
has been increased from 51 per cent to 100 per cent; the government is planning to hike FDI limit
in multi-brand retail to 51 per cent
By 2025, India would rise from the 12th to the 5th largest position in the consumer durables market in the
world. The consumer durables market in India is expected to reach US$ 20.6 billion by 2020. Demand
growth is likely to accelerate with rising disposable incomes and easy access to credit. Increasing
electrification of rural areas and wide usability of online sales would also aid growth in demand.
Exchange Rate Used:
 INR 1 = US$ 0.015 as of October 6, 2017
 INR 1 = GBP 0.012 as on February 9, 2017

6. 5 | P a g e
Indian GDP From Consumer Durables
Historical Growth/ Degrowth Pattern of the sector observed in the last 6 years
The Reasons for the Growth pattern observed in the sector
As per the estimates released by the Central Statistics Office on August 31, India’s economy, as measured
by the gross domestic product (GDP), grew by 5.7% in the first quarter of 2017-18, compared with 7.9%
in the same quarter a year ago. This is the slowest pace of GDP growth recorded since the NDA came to
power in May 2014. India grew by a strong 9.1% in the quarter from January 2016 to March 2016. The
growth recorded in the subsequent quarters was 7.9%, 7.5%, 7% and 6.1%. So this is the fifth quarter in a
row that the growth has slipped, with the pace of decline picking up momentum in the last two quarters.
The gross value-added (GVA) in the economy grew at 5.6% between April and June, the same pace as the
previous quarter, but sharply low than the 7.6% growth in the first quarter of the last year.
1552.5
1614.8
1504.6
1600.9
1617.3
1750.6
1874.9
2026.7
2207.6
0
1000
2000
3000
FY11 FY12 FY13 FY14 FY15 FY16E FY17F FY18F FY19F
RISING PER CAPITA INCOME IN
COUNTRY
GDP Per Capita
218.8 230.8 242.2
262.2
289.3
311.6
0
50
100
150
200
250
300
350
FY12 FY13 FY14 FY15 FY16 FY17
AMOUNT(RS'INCRORES)
CAGR 7.32%
GVA - Gross Value Added

7. 6 | P a g e
Porter’s Five Forces Model
Threat to Entry:
 Entering the CTV market isn’t very easy. One of the most important features needed is a good
distribution system which isn’t something that can be developed overnight.
 Also a television today is a style statement. Therefore, the brand plays an important role in
influencing the purchase decision. For a new company then entering this market, not having a
recognized brand name is a threat to entry.
Rivalry among existing firms:
 There is strong competition among the current players. The main players being LG, Samsung,
Onida, Videocon, Philips, Sansui. Some of the regional players are- Hyundai and Haier are new
entrants in the CTV space in addition to a number of small regional players.
 This increased competition has ensured that advertising costs are an integral part of the players‟
total cost. A lack of product differentiation means that price is a competitive feature that intensifies
rivalry. The highest price reductions during 2002-03 to 2005-06 were in the 20inch and 21inch
CCTV category.
 With the future being in LCDs, this market is likely to see price reductions future.
 It is expected that realizations will fall with increased competition.
Bargaining Power of Buyers:
 The TV market today is a consumer’s market where the consumer has the upper hand with him
having the power of choosing from a variety if brands.
 This bargaining power of the buyer has forced the players to offer credit facilities on sale, to provide
lower EMIs and excellent after-sales service.
 The intense dealer competition also benefits the consumer in terms of prices and offers available.
Inventory carrying costs for television companies are high. This is a boon for the consumers as it
translates into higher bargaining power for the
Industry
(Competitors)
Potential of
Entrants
(Threat of Entry)
Buyers
(Buyers' Power of
Bargaining)
Substitutes
(Threat of
Substitutes)
Suppliers
(Suppliers' Power
of Bargaining)

8. 7 | P a g e
Threat of Substitutes:
 For a television, the substitute can only be a functional substitute. The functional use of a television
is to watch programs, live events etc. This today can also be done on a computer.
 Theaters too can be a substitute to watching movies at home.
 Today with various multiplexes and theaters providing screenings of live events such as sports
telecasts etc. along with the luxury of good food and the opportunity to enjoy the event with a
number of other enthusiasts, the TV can be substituted if the TV is bought only to watch certain
events.
 However, if the television on considered to be a style statement and a lifestyle statement, then
consumers will seek to keep upgrading the type and the model of their television sets.
Bargaining Power of Suppliers:
 PCBs (Printed Circuit Boards) & CRTs (Cathode Ray Tube) are key raw materials in the production
of CTVs.
 CRT accounts for 46-48 per cent of the total raw material costs of a CTV. PCBs and housing
components account for 33-39 per cent of total raw material costs.
 Domestic CPTs prices tend to follow Global price trends. Therefore, the suppliers do not have much
of bargaining power in this regard.

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Company Informationii
Videocon is a pioneer in the
production of advanced television. Its
latest range of televisions is sure to
take your viewing experience to the
next level. The cutting edge
technology of Videocon LED gives a
crisp and sharp pictures. The recently
launched 4K Ultra HD LED is a
perfect example of a smart TV with a
futuristic approach. With features like
Gesture control, Wi-Fi and Active 3D
this one is sure to elevate your viewing
experience.
History:
 Videocon Leasing & Industrial Finance Limited, was incorporated on 4th September, 1986 as Adhigam
Trading Private Limited. In terms of the necessary resolutions passed under Sec. 21 of the Companies
Act, 1956, the name of the Company was changed to Videocon Leasing & Industrial Finance Limited
on 14th February, 1991. The Company received a fresh certificate of incorporation from the Registrar
of Companies, Gujarat at Ahmedabad on 14th February, 1991.
 The Management of the Company underwent a change in the year 1990-91 by way of transfer of equity
shares to the Videocon Group. 1,00,000 Equity Shares of Rs.10/- each of Adhigam Trading Private
Limited were purchased by the Videocon Group at a premium of Rs.3/- per share in April, 1991. The
total consideration of Rs.13 Lakhs was paid by cheques.
Videocon Industries Limited is engaged in the manufacture, and wholesale and retail trade of consumer
electronics and home appliances items. Its segments include Consumer Electronics and Home Appliances;
Crude Oil and Natural Gas; Telecommunications; Power, and Others. Its secondary segments include
Within India and Outside India. Its televisions include features, such as Windows Television; Digital Direct
Broadcast; Smart Television; Wireless display technologies; Liquid luminous display; 4K Ultra high
definition; Motion sensing gaming; Home cloud; two-dimensional to three-dimensional (3D) conversion,
and 3D Image Processing. It also offers products, such as Air Conditioners (ACs), which include Split AC
and Aryabot AC; Refrigerators, which include direct cool and frost free; Television, which includes
Welcome series and Curve Television; Washing Machines, which include semi-automatic and fully
automatic top loading, and Mobiles and Tablets.

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The Company & The Videocon Group
Mission & Vision:
“To delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing and
inspired thinking about the future.”
As detailed earlier, during the initial years the Companies in the Videocon Group had placed business with
VLIF leading to growth in its lease financing activities. The group companies have increased the fund base
of the Company by infusing funds in form of share capital and unsecured loans. As detailed in the Capital
Structure, the promoters currently hold 75% of the paid up capital of the Company. The composition of
promoters holding is Videocon International Limited 14,90,000 Shares (13.1% of VLIF''s Capital),
Videocon Appliances Limited 12,500 Shares (0.1% of VLIF''s Capital), the Dhoot Family and their friends
& associates 70,10,000 Shares (61.8% of VLIF''s Capital). As detailed earlier, the post issue holding would
be of the order of 25.50% of the post issue capital of Rs.33.375 Crores (assuming that all the OCDs are
converted @ Rs.150/- per Share and Equity Shares are issued against all the outstanding warrants).

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Competitors’ Analysisiii
Sl.
No.
Competitors
Market Shares* (Rs. in Crores)
Market
Capitalisation
Sales
Turnover
Net
Profit
Total
AssetsBSE NSE
1 PG Electroplast 393.45 404.90 664.62 367.10 3.72 219.51
2 Mirc Electronic 30.05 30.15 637.38 747.59 (5.68) 316.31
3 Salora Inter 44.75 45.05 39.68 321.65 (1.39) 165.74
4 Videocon Ind. 14.30 14.80 476.60 12,329.40 (1,915.67) 33,213.52
5 BPL 65.00 65.65 321.18 98.08 53.08 316.23
*Prices of market share may fluctuate.
PG
Electroplast
31%
Mirc
Electronic
30%
Salora Inter
2%
Videocon Ind.
22%
BPL
15%
Market share of major players in consumer
durable industry

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SWOT Analysis of Videocon
STRENGTH
 Fair brand awareness among the Indian customers
 Wide distribution network available by owning retail
stores namely Digi-world (selling its own products)
and NeXT stores.
 Acquisition of Thomson’s plants gave it access to its
technology for TVs
 Runs wide brand portfolio under KenStar, Electrolux,
Kelvinator, Sansui, Videocon brands
 The parent company operations include Videocon
Telecom, Videocon d2h, Videocon Consumer
Electronics, Home Appliances
 There are over 9000 people with the company
WEAKNESSES
 Videocon’s once strong hold i.e., CTV have lost the
sheen
 Dip in the net profits and sales over the years
 Lower share in tier 1 cities and premium products
OPPORTUNITIES
 Growing consumer appliances market in tier -2,3 cities.
 Huge potential to expand owing to low market
penetration in India
THREATS
 Increased competition from foreign players
 Decreasing brand image
 Rapidly changing technology and new features being
added by foreign players

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Product & Services offered by the company
Major Consumer Durable Products:
Consumer
Electronics
CTVs
B&W TVs
VCRs
Audio
Systems
Color
Monitors
Home
Appliances
Refrigerators
Washing
Machines
Air
Conditioners
Dish Wahers
Microwave
Owens
Mixers &
Grinders
Water
Purifiers
Components
TV, VCR &
Audio
Components
Glass Shells
for Color
Picture Tubes
B&W Picture
Tubes
Monitors for
Computers
Compressors
Other
Electronic
Office
Automation
Digital Diaries
Kiddy PC
Data
Projector
Power
Inverter
Digital Mp3
Player
Palm Top
Internet
ISP
Content &
Web
Solutions
Petroleum
Crude Oil
Extraction
Power
1,050mw
Power
Generation

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Types of television:

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Latest Newsiv
 Videocon promoted Rajesh Rathi as the business head: (16th
Aug, 2017)
Mr. Rathi was earlier the national head and responsible for the group’s consumer durable sales
across India. He has also been heading the company’s other business verticals.
 Videocon Electronics business COO CM Singh quits: (11th
Aug, 2017)
Singh, who had earlier worked in senior roles at LG and TCL, plans to start a consumer electronics
retail venture, which will aggregate dealers in Tier II and Tier III markets.
 Videocon Edge eyes 12% share of biz communication market: (3rd
Aug, 2017)
New Delhi: Enterprise arm of Videocon Telecom on Thursday said it has set a target of cornering
12 percent market share, about Rs 195 crore revenue, in the Indian business communications
market in the current financial year. Videocon Edge is eyeing business from services like sms
applications, toll free conference solution and interactive voice response system.
 Dawat-e-Hadiyah is Videocon’s Fort House New Owner: (2nd
Mar, 2017)
Dawat-e-Hadiyah, a charitable trust of the Dawoodi Bohra community, has entered into an
agreement to acquire the DN Road heritage property that has 1.50 lakh sq. ft. office space.
 Videocon gave Shiv Sena Rs 85 crore last year: (19th
Nov, 2016)
A total contribution of Rs 86.84 crore was received by Sena from corporates and non-corporates in
2015-16.

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MARKETING
SWOT Analysis of LED Television
STRENGTH
 Improved picture quality over other types of television.
 LED television is also energy efficient that saves
around 50% of energy compared to other televisions.
 Durability of LED television is better than LCD
television.
 A LED television is more reliable compared to LCD or
Plasma television.
 It consists of diode constraint instead of mercury which
increases the light effect and contrast in display.
WEAKNESSES
 LED televisions are much expensive compared to other
types of television.
 LED television is not suitable for poor and lower
middle class people.
 It is difficult to mount the LED television on the wall
as there are more dimensional depth.
OPPORTUNITIES
 Growing demand of Flat screen television.
 HD quality pictures are becoming trend.
 Internet, Bluetooth, Storage media connectivity modes
in LED television.
 LED curve is also making an impact in higher income
segment.
THREATS
 Trust on quality over the other brand.
 Additional features in other brands.
 Brand awareness in television market.
 Foreign companies like Haier and Toshiba selling LED
television in India.

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Marketing Mix (4P’s)
Marketing Mix of Videocon analyses the brand/company which covers 4P’s and explains the business &
marketing strategies of Videocon.
The elaborate description of the 4P’s related to Videocon LED television are:
1. Product: This element includes quality, benefits, customer service, warranty, features that the
customer will derive from the product:
 Saves upto 50% energy compared to LCD television.
 Good picture quality along with good sound quality.
 Videocon is well known for its customer service.
 The brand has also got the title “Name of Trust”.
 Durable product that is used almost daily basis in households, offices, news
channels, etc.
 This product comes with a domestic warranty period of 1 year.
2. Price: This element includes listed prices, discounts, payment modes, offers, etc.
 There are different listed and offered prices depending upon the model. Models
such as:
Model Listed Price Offered Price
 Videocon 24 inch HD Ready TV Rs 14,270 Rs 11,590
 Videocon 32 inch HD Ready TV Rs 25,177 Rs 17,490
 Videocon 40 inch HD Ready TV Rs 42,990 Rs 32,800
 Videocon 55 inch HD Ready TV Rs 72,900 Rs 48,465
 There are different discounts offered depending on the retailers and online
shopping sites.
 LED television can also be purchased on credit with the use of credit cards, Bajaj
Finance Co., etc.

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 Payment modes could be in cash or credit transaction, COD (Cash on Delivery),
Online Payment, etc.
 Videocon provides approximately 6 to 12 months’ subscription free cable
connection or setup box.
3. Place: This element includes distribution channels, channel partners, sales support, etc.
 Provides service centers in different corners of the India.
 Producers, wholesalers and retailer perform jointly in marketing.
 Supports sale’s person by providing add-ons to the product and also displaying
through hoardings.
 This product is mainly targeted to Middle Income-level or High Income-level
people.
 LED television has become a trend in the market for watching purpose, showcasing
status, enabling mini home theatre, etc. For this reasons, it is targeted to mainly
Urban (Tier-1&2) and Semi-Urban Cities.
4. Promotion: This element makes a major role in creating needs among customers. Leading to the
needs, customer demands for product is created. So promotion includes various modes through
which television can be promoted:
 Visual Promotion:
 Television ads.
 Internet Commercialized ads
 Covert Marketing
 Media Promotion:
 Pamphlets
 Ads on newspapers
 Branding: This product is promoted by one of the renowned celebrity,
Mr. Abhishek Bachchan
Segmentation, Targeting & Positioning (STP)
Segmentation:
Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that
behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs
and attitudes, they are likely to respond similarly to a given marketing strategy. They are likely to have
similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given
price, distributed in a certain way and promoted in a certain way.
Further, markets can be divided into four major categories:
1. Geographic-wise distribution:
 Region: Eastern, North-Western & Southern.
 City: Tier 1 – New Delhi, Mumbai, Kolkata.
Tier 2 – Pune, Jamshedpur, Gurugam, Jabalpur, Ahmedabad.
 Area: Urban & Semi-Urban areas.

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2. Demographic-wise distribution:
 Age: 11-20 years, 21-40 years and above 40 years
 Family-size: Single, Married couple, Nuclear Family and Joint Family
 Gender: Male & Female
 Income: Basically preferred by the people whose income level is more than Rs25,000
 Occupation: Businessmen, Servicemen, Officers, Senior Employees, Skilled Worker
 Education: Literate, Graduate, Post-Graduate & Doctorate.
3. Psychographic-wise distribution:
 Lifestyle: Daily television programme followers, Sport-lovers, High quality picture lovers,
better viewing experiences, Standard & Classic television lovers
 Personality: Ambitious, Interdependent, Passionate.
4. Behavioral-wise distribution:
 Occasions: Regular as well as Special occasions like festive seasons, gathering for national
sport matches, weekly entertainment shows.
 Benefits: Quality service, better eye-care, global news, better observable objects, consists
various sources to display, crystal clear picture.
 Usage: Medium and Heavy, depending upon the family-size.
 Attitude: Enthusiastic & positive.
Targeting:
Once the firm has identified its marketing-segment opportunities, it has to decide how many and which
ones to target. More importantly, high end product sales are no longer restricted to metros. Consumer in
tier-2 cities seems to be as evolved in lifestyle needs. The consumer profile, too, has changed. Higher
disposable incomes, greater aspirations and younger demographic have increased demands for the
technologies. And Videocon is targeting this segment.
Further, targeted people could be the following:
 People with high disposable income
 Youth
 Movie lovers
 Housemakers
 Businessmen
 News Channels
 Porsche car makers

20. 19 | P a g e
Positioning:
Positioning has come to mean the process by which marketers try to create an image or identity in the minds
of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their
product occupies in a given market as perceived by the target market. Once the competitive frame of
reference for positioning has been fixed by defining the customer target market and nature of competition,
marketers can define the appropriate Points-of-Difference (POD) and Points-of-Parity (POP) associations.
 Videocon's POP is good quality Picture and good sound.
 Videocon's POD is the quality product with low cost.
“Videocon has positioned itself as a reliable and value-for-money product”.
Product Life Cycle (PLC)
 Introduction stage - This stage of the cycle could be the most expensive for a company launching
a new product. The size of the market for the product is small, which means sales are low, although
they will be increasing.
 Growth stage – The growth stage is typically characterized by a strong growth in sales and profits,
and because the company can start to benefit from economies of scale in production, the profit
margins, as well as the overall amount of profit, will increase.
 Maturity stage – During the maturity stage, the product is established and the aim for the
manufacturer is now to maintain the market share they have built up. They also need to consider
any product modifications or improvements to the production process which might give them a
competitive advantage.
 Decline stage - Eventually, the market for a product will start to shrink, and this is what’s known
as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the
customers who will buy the product have already purchased it), or because the consumers are
switching to a different type of product. While this decline may be inevitable, it may still be possible
for companies to make some profit by switching to less-expensive production methods and cheaper
markets. “Videocon LED T.V lies in this stage”.

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BUSINESS FINANCEv
Statement of Assets and Liabilities (Rs. In Crore)
Particulars
Standalone
As at
31.03.2017
As at
31.12.2015
A. EQUITY AND LIABILITIES
1. Shareholders’ Funds
a) Share Capital
b) Reserve and Surplus
Total Shareholders’ Funds
2. Grant for Ozone Project
3. Non-Current Liabilities
a) Long Term Borrowings
b) Deferred Tax Liability (net)
c) Long Term Provisions
Total Non-Current Liabilities
4. Current Liabilities
a) Short Term Borrowings
b) Trade Payables
c) Other Current Liabilities
d) Short Term Provisions
Total Current Liabilities
TOTAL EQUITY AND LIABILITIES
B. ASSETS
1. Non-Current Assets
a) Fixed assets
i. Tangible Assets
ii. Intangible Assets
iii. Capital Work-in-Progress
b) Non-Current Assets
c) Long Term Loans and Advances
Total Non-Current Assets
2. Current Assets
a) Current investments
b) Inventories
c) Trade Receivables
d) Cash and Bank Balances
e) Short Term Loans and Advances
f) Other Current Assets
Total Current Assets
TOTAL ASSETS
334.46
8,056.61
334.46
9,972.29
8,391.07 10,306.75
5.63
17,194.19
366.85
164.71
6.14
18,588.43
704.35
209.88
17,725.75 19,502.66
2,311.73
1,904.89
5,331.56
67.86
4,312.20
1,164.87
2,516.73
67.02
9,616.04 8,060.82
35,738.49 37,876.37
4,972.64
21.27
490.38
10,239.47
3,645.42
5,515.27
30.15
714.36
8,994.71
4,013.08
19,369.18 19,267.57
-
2,863.52
2,400.31
553.29
10,488.46
63.73
5.20
2,359.20
2,858.52
2,676.10
10,532.68
177.10
16,369.31 18,608.80
35,738.49 37,876.37

22. 21 | P a g e
Statement of Income and Expenditure (Rs. In Crore)
Particulars
15 months
ended
Year ended
(12 Months)
31.03.2017 31.12.2015
1. Revenue from Operations (net of excise duty)
2. Other Income
3. Total Income (1+2)
4. Expenses
a) Cost of Materials Consumed
b) Purchases Stock-in-Trade
c) Changes in Inventories of Finished Goods,
Work-in-Progress and Stock-in-Trade
d) Employee Benefits Expense
e) Finance Costs
f) Depreciation and Amortization expense
g) Other Expenses
Total Expenses
5. Profit/(Loss) before exceptional items and tax (3-4)
6. Exceptional Items
7. Profit/(Loss) before Tax (5+6)
8. Tax Expense
a) Current Tax (Net of MAT Credit)
b) Deferred Tax
9. Net Profit/(Loss) for the Period
10. Paid-up Equity Share Capital
(Face Value Rs.10/- per share)
11. Reserves excluding Revaluation Reserves as per
Balance Sheet of previous accounting year
12. Earnings per Share (not annualised)
a) Basic
b) Diluted
12,329.40
499.20
12,828.60
4,428.47
4,305.53
21.17
375.71
3,097.73
731.52
2,121.65
15,081.78
2,253.18
-
2,253.18
-
337.51
1,915.67
334.46
8,056.81
57.28
57.28
12,418.21
844.33
13,262.54
4,073.30
3,991.93
20.90
283.43
2,368.46
701.71
1,883.51
13,323.24
60.70
-
60.70
-
4.90
55.80
334.46
9,972.29
1.67
1.67

23. 22 | P a g e
1. Gross Profit and Net Profit Margin of the company
Gross Profit Margin:
Years Profit Before
Tax (PBT)
(1)
Finance
Cost
(2)
Depreciation &
Amortization
Expenses (3)
Gross Profit =
(1)+(2)+(3)
Revenue Gross
Profit
Margin
2017 2,253.18 3,097.73 731.52 5,350.91 12,329.40 43.40%
2016 60.70 2,368.46 701.71 2,429.16 12,418.21 19.56%
Net Profit Margin:
Years Net Profit Revenue Net Profit
Margin
2017 1,915.67 12,329.40 15.54%
2016 55.80 12,418.21 0.45%
Observation: Both, Gross Profit Margin and Net Profit Margin has increased which concludes that the
company has reduced their overheads as the revenue from the operations remained same
but the profit has increased over the year.
2. Direct and Indirect costs of the company
Direct Costs:
Items Amounts (in Rs) Change in
Direct CostsYear 2016-17 Year 2015-16
Costs of Material Consumed 4,428.47 4,073.30 8.72%
Purchase of Stock-in-trade 4,305.53 3,991.93 7.86%
Changes in inventories of FG, WIP &
Stock-in-trade
21.17 20.90 1.29%
Total 8,755.17 8,086.13 8.29%
Indirect Costs:
Items Amounts (in Rs) Change in
Indirect CostsYear 2016-17 Year 2015-16
Employee Benefit Expenses 375.51 283.43 32.49%
Finance Cost 3,097.73 2,368.46 30.79%
Depreciation and Amortization Expenses 731.52 701.71 4.25%
Other Expenses 2,121.65 1,883.51 12.64%
Total 6,326.41 5,237.11 20.80%
Observation: Company’s shifted from production expenses to expenses towards employees and
finance.

24. 23 | P a g e
3. Fixed Assets added during the year
Assets Amounts (in Rs) % Change
Year 2016-17 Year 2015-16
Tangible Assets 4,972.64 5,515.27 (9.84)
Intangible Assets 21.27 30.15 (29.45)
Capital Work-in-Progress 490.38 714.36 (31.35)
Intangible Fixed Assets under Development - - -
Total Fixed Assets 5,484.29 6,259.78 (12.39)
Observation: Sale of Fixed Assets took place during the year.
4. Working Capital for the year
Working Capital = Current Assets – Current Liabilities
Year Current Asset
(in Rs)
Current Liabilities
(in Rs)
Working Capital (in Rs) Changes in W.C
2017 16,369.31 9,616.04 6,753.27
(35.98)%
2016 18,608.80 8,060.82 10,547.98
Observation: As mentioned earlier also, the company has reduced its working capital requirement over
the year, which causes to decrease in production costs.
5. Debt/Equity ratio of the company
Debt-Equity Ratio = Long Term Borrowings/Shareholders’ Funds
Years Long-Term Borrowings Shareholders’ Funds Debt-Equity Ratio
2017 17,194.19 8,391.07 2.05:1
2016 18,588.43 10,306.75 1.80:1
Observation: Company is almost near to the ideal ratio i.e., 2 : 1, which means the company financing
its fund requirement from Long-Term Debts.

25. 24 | P a g e
Human Resource Management
Human Resource Management (HRM) is the term used to describe formal systems devised for
the management of people within an organization. The responsibilities of a human resource manager fall
into three major areas: staffing, employee compensation and benefits, and defining/designing work.
Organizational Structure
Chairman
CEO
G.M
V.P
R&D
V.P
Finance
V.P
Marketing
A.D
Manager
M.R
Manager
M.R
Executive
(A.C)
M.R
Executive
(T.V)
M.R Executive
(Washing
Machine)
M.R
Executive
(Refridgerator)
Sales
Manager
V.P
H.R
V.P
Operations

26. 25 | P a g e
Skill Sets required for the company
 The ability to manage a diverse environment
 Knowledge of other cultures
 A global mind-set
 Effective conflict resolution
 A willingness to learn
 The ability to successfully outsource
 Strong communication Skills
 An understanding of Analytics
Job-Description and Job-Specifications posted on online-job portalsvi
MARKETING:
Post & Job Title
 Assistant Sales Manager
Location
 Mumbai, India
Working Hours
 Flexible- 8 hours per day normally
Reporting To
 Sales and Marketing Manager
Working with
 Area Sales Manager and all other employees
Purpose of job
 To manage the receipt, handling, and escalation of all sales enquiries
 To ensure sales in allotted territory and achieve sales targets
 To administer the preparation of quotes
 To create and implement a Marketing and PR strategy
 To produce appropriate marketing collateral as required
 Manage the day to day work of the sales in allotted territory
 Other tasks as required
Main Duties and Responsibility
 To manage the receipt, handling and escalation of all the sales
 To receive and co-ordinate all sales enquiries in line with the company’s sales process
 To monitor the status of all live enquiries to ensure all HEC and enquirer actions are completed in
a timely professional manner and escalated to the MD when required
 To ensure that all quotes and associated files and linked to an enquiry
 To follow up sales activities with clients & potential clients
 To chase and analyse the reasons for failure to turn an enquiry into a new order
 To monitor company sales KPIs and sales performance

27. 26 | P a g e
Finance:
Job & Post Title
 Accounts Manager
Location
 Mumbai, India
Working Hours
 Flexible- 8 hours per day normally
Reporting to
 Senior Accountant
Working with
 Managing Director, CFO and all other employees
Purpose of Job
The Account Manager is the person in charge of managing a company's relationships with its customers.
They are in charge of building long-term relationships with a group of customers and generally stay with
customers for the length of their relationship with the company. The goal is to keep clients or accounts as
long as possible. Account managers may be in charge of finding new business, be assigned prospects, given
accounts, or a combination thereof. Tasks may involve project management, strategic planning, sales
support, product design, service application, logistics, and marketing.
Main Duties and Responsibility
 Operates as the point of contact for assigned customers
 Develops and maintains long-term relationships with accounts
 Makes sure clients receive requested products and services in a timely fashion
 Communicates client needs and demands to employer company
 Forecasts and tracks client account metrics
 Manage projects with in client relationships
 Identifies opportunities to grow business with existing clients
 Coordinate with staff members working on the same account to ensure consistent service
 Collaborates with sales team to reach prospective clients
 Service multiple clients concurrently, often meeting deadlines
 Keep records of client transactions
HRM:
Job & Post Title
 Assistant Manager (Recruitment)
Location
 Mumbai, India
Working Hours
 Flexible- 8 hours per day normally

28. 27 | P a g e
Reporting to
 Senior Manager
Working with
 Managing Director and all other employees
Purpose of Job
 Effective listening skills demonstrated by the ability to listen to other people talk without
interruptions,
 understand them and then propose solutions or make contributions based on the points made
 Must be patient and willing to help others in solving problems while maintaining a positive attitude
at all times.
 Strong communication skills characterized by excellent writing and speaking skills.
 He/she must possess excellent multi-tasking skills and be able to function under pressure.
 He/she must also have excellent negotiation skills.
 Must have a keen eye for detail and follow instructions to the letter.
Main Duties and Responsibility
 To understand the hiring requirement for a specific department or roles and accordingly source
right king of resources.
 To facilitate interviews with the hiring managers and ensure positions are closed within specific
time line.
 To ensure requisite approvals are obtained w.r.t. budgeted headcount, cost of hiring, exception
handling and offers issued.
 To maintain high degree of integrity whilst dealing with vendors and candidates in the interview
process.
 To endeavor creation of the best practices in talent acquisition.
 The processing will be based on open position available.
 Maintain traceability of resumes forwarded, candidate status through appropriate MIS's.
 Track offer acceptance & candidate on boarding status through prescribed MIS.
Recruitment sources of the company
 Direct Sources:
i. Pre-Placement Offer (PPO)
ii. Campus Visit
 Indirect Sources:
i. Advertisement
ii. Talent Coaching
 Internal Sources:
i. Promotions
ii. Reference
iii. Transfer

29. 28 | P a g e
Selection Process
Selection procedure of Videocon is in the following steps:
i. SHORTLISTING:
 Selection process starts with receiving of resumes.
 After all resumes were received then scrutiny and screening of resumes were held as per the
eligibility criterion or job description.
 Candidates were finally shortlisted for further tests and interviews.
ii. WRITTEN TEST:
 In the written test, candidates can expect questions from GENERAL APTITUDE and
PROFESSIONAL KNOWLEDGE:
 GENERAL APTITUDE includes questions of Numerical Ability, Logical Reasoning and
Language Comprehension.
 Of these, 15 questions will be asked from numerical ability which has to be attempted within 20
minutes.
 There will be 15 questions from logical reasoning. The maximum time allotted for this section is
10 minutes.
 There will be questions related to Reading comprehension and the Basic English grammar.
Technical section includes 20 questions.
 Candidates can expect questions from topics such as Programming, Electrical circuits, networking
and other relevant topics.
iii. GROUP DISCUSSION:
 Those who have cleared written test will be called for group discussion.
 Candidates will be given a general topic to speak about.
 Candidates’ communication skill will be evaluated in this section.
iv. TECHNICAL INTERVIEW:
 After qualifying the group discussion, successful candidates will have to undergo two rounds of
interview.
 In technical interview, candidates can expect questions from the candidate’s area of specialization.
 Candidates should have a thorough knowledge in their core subject to clear the technical round
successfully.
v. PERSONAL INTERVIEW:
 Final selection will be based on the performance in HR interview.
 It is conducted to analyze candidate’s behavior, personality, interpersonal relationship, the ability
to handle stress etc.

30. 29 | P a g e
 Questions will be asked to test the candidate’s reaction to situations, patience to handle problems.
 A thorough preparation is required to clear the entire recruitment process.
vi. NOTIFICATION and APPOINTMENT:
 After completion of all medical-test and background verification, selected candidates were notified
with an Offer letter holding certain terms and conditions.
 This offer letter can be considered as an Appointment letter if the selected candidates gives consent
on the letter, then he converts from candidate to employee.
Induction Program
Induction training is essential for any company because it helps a new recruit grow within the organization
and motivates him/her to be stronger performer. It is during induction program that a new recruit gets to
know about the organization's philosophy, work environment, employee's responsibilities, the organization
culture and values and also the key business processes. Interaction at this stage shapes an individual's
disposition and outlook for work and motivation levels. The importance of induction cannot be
underestimated. Our induction training covers the following employee topics:
 Salary structure
 Attendance and leave cycles
 PF, ESIC, PT, LWF & Company Insurance features
 Reimbursement policies and procedures
 Incentive policies if any
 Job description and expectations
 Overview of company principles and values
 Reporting hierarchy
We strongly believe that bad induction is a trigger to attrition, whereas, good induction facilitates retention.
Through our Induction Training product, we strongly reinforce this principle within our clients’
organizations.
Types of training provided in the company
1. ON SPECIFIC JOB
2. POSITION ROTATION
3. APPRENTICESHIP
4. SPECIAL PROJECT, TASK FORCES ETC
5. VESTIBULE SCHOOL

31. 30 | P a g e
Performance Appraisal Model
Employee Benefits
PERFORMANCE
APPRAISAL
MODEL
Ensure Customer
Requirements
Set Sensible
Objectives
Provides
Standards for
Comparison
Scorecard to
monitor peoples'
performance level
Highlight quality
problems &
determine area for
priority attention
Provide Feedback
for Driving the
important effort
Insurance,
Health &
Wellness
Health care
Insurance
Life
Insurance
Disability
Insurance
Dental
Insurance
Vision
Insurance
Financial
& Retirement
Pension Plan
Stock Options
or Equity
Retirement
Plan
Performance
Bonus
Family
& Parenting
Work from
Home
Maternity &
Paternity Leave
Childcare
Reduced or
Flexible Hours
Unpaid Extended
Leave
Vacation
& Time Off
Vacation &
Paid Time Off
Sick
Leaves
Bereavement
Leave
Perks
& Benefit
Free lunch or
snacks
Gym
Membership
Employee
Discount
Company
Car
Employee
Assistance Program
Professional
Support
Diversity
Program
Job Training
& Tuition

32. 31 | P a g e
Career Planning in the company
At Videocon, the company recognize that their success depends entirely upon the success of their
colleagues, and hence, they have a clearly defined career path.
 Commensurate as per the education and experience, colleagues will join Videocon as part of the
Top / Middle / Intermediate management levels.
 Those with lesser experience will join as Team Members.
 Thereafter, the potential colleagues will grow along with the company as rapidly as their abilities
will allow.
 Videocon’s well-structured career progression scheme ensures that their colleagues focus on their
core area of expertise and the rest is taken care of.
Organization Culture
Organisational culture based on reviews:
 Nice place to work !!
The company is driven with lot of values, though the culture at work can get better and the
frequent changes in management is pulling it down
 Amazing place to work and also lots of things to learn, atmosphere is friendly and also have fun
with employees. Celebrated each function here. Motivational atmosphere.
 Key Deliverables:
• Network expansions
• Product briefing and Competitors analysis
• Tracing Category wise and Product wise Sales
• Product Promotion and Store Branding
• Achieving exceeding Sales Target on Weekly Basis

33. 32 | P a g e
References
i
www.ibef.org
ii
www.videoconworld.com
iii
www.moneycontrol.com
iv
www.economictimes.indiatimes.com
v
www.videoconworld.com
vi
www.shine.com, www.naukri.com, www.monster.com