Godrej, Videocon may bid for GE's appliance business

Leading investment bankers such as UBS, JPMorgan and Goldman Sachs have sounded out the Godrej Group and Videocon on a possible bid for General Electric’s appliances division.

The Indian durable makers are closely studying the feasibility of acquiring the US giant’s appliance business, which makes refrigerators, air-conditioners and ovens. The Godrej Group had an earlier joint venture with GE that broke up in 2001. Investment bankers have estimated the deal size at $3-4 billion. Sources said the division, with sales of $7.2 billion, had an EBITDA of around $450 million. It accounted for 4% of GE’s revenues of $173 billion.

Videocon to foray into hospitality, hydropower

After foraying into the telecommunications and thermal power sectors, Venugopal N Dhoot, chairman and managing director (CMD), Videocon Industries today said the group is sewing up plans to enter into hospitality and hydropower. The company is in talks with the Uttarakhand government for various projects.

A five star hotel and construction of a Dehra Dun-Mussoorie ropeway are the immediate proposals of the company in the hill state. Besides this, Videocon is also interested in acquiring a heritage building in a Mussoorie hill resort.
Videocon is eyeing for ten acres of land for the construction of five or seven star hotel on the foothills of Mussoorie. An amusement park is also on the cards near the proposed hotel.

As far as hydropower is concerned, Videocon expects to produce nearly 2,000 mw in the first phase of the plan. Already, company officials have held talks with the top state government authorities. The company has also held talks with the Uttarakhand Power Corporation (UPCL) for selling the power.

Videocon, BPCL to buy Brazilian oil company

A consortium of oil refiner Bharat Petroleum Corp Limited (BPCL) and Videocon Industries has decided to buy Brazil’s EnCana Brasil Petroleo Limitada for about $165 million (about Rs 675 crore).

Videocon, a diversified group whose businesses range from power to home appliances, and Bharat PetroResources Ltd (a subsidiary of BPCL) are equal partners in the consortium that will buy EnCana Brasil Petroleo from Canadian natural gas producer EnCana Corp and 749793 Alberta Ltd, the companies said in separate statements to the Bombay Stock Exchange.

BPCL, which did not disclose financial details, said the deal was for interests in 10 deepwater offshore exploration blocks in four concessions in Brazil.

The sale, which will be effective retrospectively from January 1, 2007, is subject to regulatory approval, pre-emptive right associated with certain assets, and is expected to close in the first quarter of 2008.

Read more in The Business Standard article.

Videocon to invest $1.5 b in China

Ten Indian companies, including consumer durable major Videocon would invest $5 billion in setting up manufacturing units in China. Videocon alone would invest $1.5 billion in a liquid crystal display (LCD) product manufacturing unit in Shenzhen.

The other Indian companies to have signed a memorandum of understanding (MoU) with their Chinese counterparts include ZTE Telecom India, Spice Communications, International Certification, AKS Associates, Cosmos Industries, Maharasthra Industrial Development Corporation, Rajasthan Industries Development Corporation and Unity Power.

These MoUs were signed on Tuesday in Beijing. Videocon MD Rajkumar Dhoot on Tuesday signed an MoU with the China Council for Promotion of International Trade (CCPIT) chairman Wan Jifei for the proposed plant in China. Industry body Assocham has sent a 35-member business delegation to Beijing to discuss business possibilities with CCPIT.