Ever thought what is happening Motorola's once so popular handset business? Seems like, India's Videocon has an eye on them.
News came out yesterday that Videocon has bid for Motorola's loss-making mobile handset business. I will call it the turning point of Videocon. Being in the Indian Electronic Industry for more than 20 years, and having an annual turnover of USD 4 billion, Videocon has a bright future ahead. For the last few years, they have been trying to beome an international brand with a credibility by taking advantage of "Made in India" tag. (The world knows most of the electronic goods are coming from China and others and there has been the problem of decreasing quality. With India becoming the Global IT center, Indian semiconductor industry can also get the "Trust Factor" easily).
Videocon is already taking advantage of this. Their slogan, "The Indian Multinational" itself is a step in this regard. Also, considering India will become the biggest market for mobile handset (maybe second after China) and that too, with a high need for low-end models, Dhoot has done a master stroke. Already, the MotoYuva model is catching up well with the Indian youth, mainly the school and college going ones. And Razr and Rokr were hugely popular in India. (Note the usage of past tense!)
So, if the deal gets through, Venugopal Dhoot would have pulled through a best acquisition that Corporate India has ever seen. But, the thing that nags me is, after failing to get through the bid for Daewoo Electronics, can Dhoot make this work? Time will tell the answer.
Check this great report by CNN.