Consumer electronics major Videocon Industries is diversifying
into electricity generation and supply and mining of minerals,
including coal. The company is currently in talks with
engineering and construction major Larsen & Toubro
Ltd to float a new power company, reports quoting its
managing director Venugopal Dhoot said.
and L&T will be equal partners and initially invest
Rs4,500 crore ($1.1 billion) in a 1,000 MW coal-based
power plant in Gujarat, the report said.
order to derisk the business model, the company has identified
power generation and trading and dealing in various minerals,
including coal, required for power generation for the
purpose of expansion and diversification," Videocon
had earlier said in a note to its shareholders.
company had also sought shareholders'' approval for this
diversification through a postal ballot as the present
"main object clause" of the memorandum of association
does not allow it to carry on business of generation and
supply of power or deal in coal.
also said it would form three wholly owned units for power,
railway and shipbuilding and launch a $1 billion infrastructure
however, maintained that it would continue to focus on
its prime business segments - consumer electronics goods,
home appliances and exploration of oil and natural gas.
But it has stated "the proposed diversification will
prove beneficial to the growth and development of the
country plans to add 78,577 megawatts of power generation
capacity by 2012, mainly from coal-fired units, to overcome
shortages in electricity.
is also planning to set up a semiconductor unit in India
with an initial investment of Rs2,500 crore and is currently
working on finalising the location for the same.
said the project is at a conceptualisation stage and details,
including location for the plant, are yet to be worked
said a full range fab would require a minimum initial
investment of about Rs2,500 crore. Asked about reports
of the company setting up its semiconductor facility in
West Bengal, he said the state government was offering
attractive package but it has not been finalised yet.
state (West Bengal) is progressing very fast. We are having
two units there and have never lost a single labour day
We think that it is very good proposal," he said
refusing to divulge the exact location, but added the
project would require 100-150 acre of land.
said Videocon was in touch with a variety of companies
for technology tie-up for the project.