Wednesday, June 29, 2005

Videocon largest CPT maker

Videocon has acquired Thomsons colour picture tube (CPT) facilities across the globe in a deal worth about 240 million euros (1260 crore INR). This acquisition makes Videocon the globes largest CPT maker. While this is good news, these facilities, I inferred from the piece and quotes, may have to be upgraded.

...Mr V.N. Dhoot, Managing Director of Videocon International Ltd, said: "The group has lined up an investment of $500 million (including the cost of acquisition) over the next three years to realign qualitatively and quantitatively the acquired units."...

...He added that the group has drawn out a plan to improve these facilities by adding the latest products and technology such as slim tube, plasma, LCD, and other flat-panel display lines...

The report(s) does not speak of competition from the other biggies of the world. But the piece in FE says

...Thomson’s facilities include full-fledged R&D facilities at various places located in Europe and China along with access to a large resource of the patents and IPRs relating to the most basic technologies in CPT...

I did some research (euphemism for Googling and Wikipedia) on television technology. While I dont know the range of Thomsons CPT manufacturing or research, my guess is that globally television displays are moving from basic CPT to other types of displays (LCD, plasma and so on). Heres a link

... At the same time that we are witnessing the passing of analog television, an evolution in television technology is occurring. The familiar CRT TV (cathode ray tube - or ‘picture tube”) is being pushed aside by an array of new competitors. These include: Plasma ... LCD ... LCoS ... DLP; to name some of the emerging television technologies, now competing for your attention...

We are still a longish way off from a time where CPTs will be replaced entirely, so Videocon has time.

It is also a good thing for Videocon, which has lost a fair amount of marketshare (couldnt get an appropriate link) and mindshare to the Koreans in India to compete at a global level.

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