In the early 2000s, the company launched a major expansion drive, diversifying from its core business — consumer electronics — into a raft of sectors such as oil and gas, telecom, retail and in DTH services. This massive diversification led to aggressive borrowing. Soon, debt began to pile. But the company's capacity to pay off the debt started deteriorating over the years as the new businesses were capital intensive and were not generating enough money. Despite the diversification, consumer durables was still the largest contributor to Videocon's top line, but started stagnating with increase in competition.

1. HOW VIDEOCON FELL FROM GRACE
AND INTO INSOLVENCY
BY HARSH KUMAR

2. ABOUT COMPANY
 Videocon was founded by Nandlal Madhavlal Dhoot in
1987.
 It emerged as an industrial conglomerate with interests all
over the world.
 The group has 17 manufacturing sites in India and plants in
China, Poland, Italy and Mexico.
 It is the third largest picture tube manufacturer in the world.
 Videocon group has an annual turnover of US$ 9.1 billion.

4. WHY VIDEOCON FAILED?
 In the early 2000s, the company launched a major expansion
drive, diversifying from its core business — consumer electronics
— into a raft of sectors such as oil and gas, telecom, retail and in
DTH services.
 This massive diversification led to aggressive borrowing. Soon,
debt began to pile. But the company's capacity to pay off the
debt started deteriorating over the years as the new businesses
were capital intensive and were not generating enough money.
 Despite the diversification, consumer durables was still the
largest contributor to Videocon's top line, but started stagnating
with increase in competition.

6. WHY VIDEOCON FAILED?
• Revenues from the oil and gas business also dropped due
to fall in global crude oil prices during 2015 to 2016.
• As it looked to trim its debt burden, the company tried
selling its assets and businesses. In November 2016, the
company merged its DTH service business with Dish TV.
• With mounting debt, market capitalisation also took a
plunge. Currently, Videocon Industries has more debt
than value.
• The company’s debt as on March 31 2017 was as high as
11 times of its market capitalization on the same day.

8. KEY ASPECTS OF FAILED MANAGEMENT AND
LOSS GRAPH
• LESS ACOUNTABILITY.
• IMPROPER MANAGEMENT.
• FAILED IN CAPITALIZATION.
• UNABLE TO REGENERATE ASSETS.
• METERIAL > HR.

11. THANK YOU….