Videocon wants Motorola phone biz.
So where does Motorola come in? In November, 2007, when the Indian regulation was awarding blooming telecommunications licenses, Videocon was centre of the winning bidders. In the next three months, Dhoot says, he plans to launch versatile services in 18 Indian cities and towns. Consequently, “every major global telecom gamester is talking to me” he says proudly. “Motorola’s handset business dovetails well with my telecom plans,” he says.
Videocon owns 700 retail outlets selling all things from refrigerators to unfixed phones, and Dhoot expects to expand that to 4,000 in the next five years. “That’s where my synergy with Motorola comes in,” he says. Motorola says “not for sale” However Dhoot’s plans, and his arouse in Motorola, have failed to enthuse many in India. “Videocon has no telecom expertise, and managing a following get a kick out of Motorola is a challenge,” says Nabankur Gupta, a former senior forewoman at Videocon and now chief executive of a marketing firm.
More importantly, as a typical Indian family-owned business, Videocon has a complex framework of cross-holdings across a web of private companies, with unimaginative transparency. Indian headhunters say the top-down style at Videocon has made it tough to charm qualified professionals to the group. Dhoot responds that he employs plenty of capable managers and that his band has enough cash to fund a bid for Motorola, but declined to provide details. Motorola declined to note on the matter.
But a source familiar with the company’s plans says Motorola’s management remains committed to spinning off the constituent and that there’s no “for sale” sign on the business.
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