Videocon plans to set up mobile phone facility by next year

NEW DELHI: Diversified business group Videocon plans to set up its first mobile phone manufacturing plant in India, which could entail an investment of up to Rs 75 crore in the initial phase.

The company, which is looking to sell around 2.5 million mobile handsets next year, is currently scouting for locations for the new plant across the country, particularly in Kerala, Madhya Pradesh and Chhattisgarh.

"Videocon is ready to put up a mobile phone manufacturing plant in India next year. At present, we source it OEMs ( Original Equipment Manufacturers) here. Now we are going to start on our own," Videocon Industries Director Anirudh Dhoot told PTI.

The company, which sells consumer electronics and appliances such televisions, refrigerators, among others, had entered into the mobile phone space last year, under the brand 'Videocon' last year.

"We have been invited by the states of Madhya Pradesh, Kerala and Chhattisgarh. We have not yet finalised the location. A decision on the same would be taken next year in February or March," he said.

Till date, the firm has sold around 1.5 million mobile phones. It is planning for 66 per cent jump in sales to 2.5 units by next year.

Though he did not provide details how much the company is likely to spend on setting up the plant, he said it would require a minimum of up to Rs 75 crore.

"We have not thought (about the investment) but there will be at least Rs 50-75 crore investment. That's the minimum required to start up, looking at the size of our mobile business," he said.

At present, for its consumer durables products Videocon has seven plants in Gujarat, Uttarkhand, Maharashtra, Karnataka, Andhra pradesh and West Bengal.