Videcon signs preliminary deal to buy Daweoo

Videocon is looking for expanding globally. It is quite clear from its punch line “The Indian Multinational”. In India the consumer spending on consumer durables is second highest after the expenditure on food. In India Videocon has market share of 17% in consumer durables where as the South Korean companies LG and Samsung jointly have a market share over 40 percent. These South Korean players are growing at higher pace and they have made a good brand of themselves.

If we see the consumer durable market in India the players are reducing. The competition is decreasing as players like BPL, Onida and Philips are loosing market share. Daweoo has a better brand image in India and world over. So this is a great advantage for Videocon. It can market its product under the Daweoo brand.

South Koreans companies are competitive. So the acquisition of Daweoo makes Videocon more competitive to grab the new markets. Last year it has acquired the Electrolux. Now the company has global brands under its arm. This is going to help the company expand globally with the help of these global brands.