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Once a household name, Videocon goes to bankruptcy

  •   Wed, Sep 26 2018 07:52:21 PM

Daijiworld Media Network

Mumbai, Sep 26: After defaulting on debt worth Rs 20,000 crore, Videocon Industries Ltd (VIL) which is going into bankruptcy has invited bids from prospective buyers to take control of the firm.

The company is undergoing insolvency process under the Insolvency and Bankruptcy Case (IBC). Venugopal Dhoot’s Videocon has diversified businesses, ranging from consumer durables to oil and gas. The company was among the 28 companies identified by the Reserve Bank of India (RBI) on its second list for huge defaults.

The corporate insolvency resolution process (CIRP) of the company was commenced under the IBC following an order by the Mumbai bench of Company Law Tribunal (NCLT) on June 6.

VIL Resolution Professional (RP) Anuj Jain said insolvency resolution process in respect of 11 group companies of VIL has commenced and for other entities, order is expected to be passed by the NCLT shortly.

Meanwhile, Videocon in June claimed losses due to government policies especially demonetization, both in India and abroad.

While demonetisation affected its supply for making cathode ray tube televisions, Supreme Court decision to cancel telecom licenses impacted its telecom business. Red tape in Brazil affected its oil-and-gas business, Videocon claimed.
  

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Comment on this article

  • Aubb, India / Kuwait

    Sat, Sep 29 2018

    With the exception of few, many big businessmen flourished on the patronage of both Cong / BJP, which has brought the nation to this point of no return.

    This effect will sink more big ships in days to come, unfortunately.

    DisAgree Agree Reply Report Abuse

  • Ajit Nellikatte, Dubai

    Fri, Sep 28 2018

    One more company is now qualified to build Rafale fighter jets!

    DisAgree Agree [1] Reply Report Abuse

  • Sunil Dsouza, Mangalore

    Thu, Sep 27 2018

    I don't understand the people's thinking here , the company has gone bankrupt owing a number of bad business decisions in the past few years. But people blame government and policies and use this opportunity to vent out their own anger at the government not really knowing head or tail about how this company went bankrupt. I think people better think and then type in this portal rather than give some pseudointellctual opinions which are simply a waste of bandwidth time and space...

    DisAgree [2] Agree [2] Reply Report Abuse

  • Rakshith, Mangalore

    Fri, Sep 28 2018

    Appreciated,if all Congress and BJP supporters think like you, India will be developed ,Nice comment Sunil Ji ,

    DisAgree Agree [1] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Thu, Sep 27 2018

    Business houses are running on loss, defaulters of Bank loan increasing, small scale industries are facing difficulties in running their business. Rupee exchange loss, sky rocketing fuel price, falling real estate activities ….list goes on
    Modi sarkar
    Bekaar bekaar
    do not need chaukidar

    DisAgree [8] Agree [17] Reply Report Abuse

  • mangaluru mohammed, Mangaluru

    Thu, Sep 27 2018

    Bakt say no one effected in demonitisation including Modi and Shah and Jutley... But see here big business are effected with this stupid discussion...

    Still No count on how much black money collected...???

    DisAgree [9] Agree [20] Reply Report Abuse

  • CHRISTINE PINTO, Mangalore

    Thu, Sep 27 2018

    This is because of BJP GOVT. After note ban all business men are crying.

    DisAgree [7] Agree [21] Reply Report Abuse

  • Meea, Mangalore

    Thu, Sep 27 2018

    People becomes poorer day by day and contrary mukesh ambani become richer day by day.as per report he is minting rs.3000 million per day.this is the policy of bjp na khaunga na khane dunga except ambani.

    DisAgree [5] Agree [32] Reply Report Abuse

  • MV Sanil, Bangalore

    Thu, Sep 27 2018

    Good decision by Govt and RBI.
    Let the screw gets tighten on all NPA.

    20000 crores is the money invested by common man in Public sector Banks dreaming of a safe and secure life post retirement.

    UPA govt sanctioned money left/right underestimating the globalization and our own local business.

    Hope many more business houses are bound to be regulated.

    DisAgree [14] Agree [21] Reply Report Abuse

  • P K Majumdar, Kashipur

    Wed, Sep 26 2018

    There is no doubt that because of adamancy of govt and it's jealousy mind against certain business houses has spoiled lakh of individual's life as well as some good business houses ,especially those who are politically involved with other political parties. Like as our company has since good relation with shiv Sena. Will Mr Arun Jaitley and Modi ji feed our children? Will they provide us job now? Dhoot Sir repeatedly requested to give him only 5years time and he will repay all the loan . Since the company is running last 40 years. Every business has ups and downs. Govt should have at least given
    three years to give a chance for turn around. Modi ji you have been PM for only capitalist. You do not bother about general public. Only big talks will not fill our stomach. People are suffering very much. Dhoot Sir provided our bread and butter.Hence he is a superior man to me than you. Very simple mathematics. Hope this article will not hurt you. God helps them who help others. Unemployment will (due to adamant govt) give a halt in 2019.If this article reach to you pl give me a chance to talk to you. I can not pardon you because I have lost my job . What is our fault? Certain policies has impacted a lot to our business. Telecom was a big jolt. Before going to take such hard decisions govt should have thought something for the employees of concerned company. Is it a govt of people or Nirav,Malliya,Choksi,Sandars and many more? If a democratic govt start working like dictatorship then all the hopes and desire of common people convert into a dismal future. Same will be reflected in country's future.
    Regards.

    DisAgree [11] Agree [46] Reply Report Abuse

  • Dr.S.Kamath, Mumbai

    Thu, Sep 27 2018

    You appear to be a fake employee
    Because
    No one has lost job in Videocon
    New govt law allows just change of promoters and thus company will not shut down
    And already Videocon has sold loss making Telecom to Air tel
    D2H to Dishtv
    Oil and gas assets also will be hived off to a new promoter

    DisAgree [21] Agree [11] Reply Report Abuse

  • geoffrey, hat hill

    Thu, Sep 27 2018

    No prize for guessing who that new Oil and Gas promoter would be! This is what you call hitting two birds with one stone.

    DisAgree [3] Agree [14] Reply Report Abuse

  • Dr.S.Kamath, Mumbai

    Wed, Sep 26 2018

    As Per ex RBI Governer Raghuram Rajan
    Root cause is Unnecessary Over Eagerness by the PSU Banks to lend money when UPA Govt was in rule and No Growth in GDP in UPA 2

    DisAgree [52] Agree [19] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Sep 27 2018

    Dr.S.Kamath, Mumbai,
    Do you understand Economics ...

    DisAgree [12] Agree [37] Reply Report Abuse

  • Compounder, Kallianpur

    Thu, Sep 27 2018

    Dr Kamath Mumbai,
    It seems you are blaming the tablet instead of the disease....

    DisAgree [10] Agree [26] Reply Report Abuse

  • Sanjeeva Pai, Kuppaypadv/Mangalore

    Thu, Sep 27 2018

    Doctraee,
    You just blame UPA govt, instead of your PAKODA govt. Being a doctor I can't even imagine how you like pakodas so much instead of 'pulli saar'.

    DisAgree [10] Agree [32] Reply Report Abuse

  • Ranga Nayak, Shimoga

    Thu, Sep 27 2018

    Doctor,
    India's economy is infected by pakoda virus. Do you have any strong antibiotics to eradicate this virus from 2019 by 1 crore people?

    DisAgree [10] Agree [27] Reply Report Abuse

  • Amith, udupi

    Thu, Sep 27 2018

    when doctors discuss economy ..and lawyers become finance ministers ...and people with no degree rule india ...this is bound to happen ...Dr Kamath ..when you prescribe cyanide for a pateint who says i cant sleep and you argue ..he wanted to sleep and i put him to sleep ..this is what is happening with Feku PM

    DisAgree [1] Agree [8] Reply Report Abuse

  • JNB, Mangalore_mumbai

    Thu, Sep 27 2018

    Dr Kamath
    As per economics Indian Population increases in geometric ratio not arithmetic ratio understand ?

    DisAgree [1] Agree [4] Reply Report Abuse

  • Sumanth, Skal mlre

    Wed, Sep 26 2018

    Sorry Mr Dhoot and all bussiness men of India (excluding Gujrathi) that we casted our vote for the disaster of India. Videocon is a emotion for Indians.

    DisAgree [10] Agree [42] Reply Report Abuse

  • Allen, Mangalore

    Wed, Sep 26 2018

    Once a big name Anil Ambani's Reliance Communications Ltd also in the verge of becoming bankrupt!

    DisAgree [5] Agree [32] Reply Report Abuse

  • geoffrey, hat hill

    Wed, Sep 26 2018

    If he (V Dhoot) were a Gujju, would've been in Antigua or Nigeria with 20k crores by now.

    DisAgree [11] Agree [32] Reply Report Abuse

  • David Pais, Mangalore

    Wed, Sep 26 2018

    india has b come bankrupt under chichi chiwala. what is videocon?????????

    DisAgree [15] Agree [40] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Wed, Sep 26 2018

    After Anil Ambani another Gujarati Venugopal Dhoot is Bankrupt.
    RIP ...

    DisAgree [15] Agree [18] Reply Report Abuse

  • SMR, Karkala

    Wed, Sep 26 2018

    Prime Minister Narendra Modi and Finance Minister Arun Jaitley were informed about the alleged corruption involving the ICICI CEO, Chanda Kochhar, worth Rs 3,250 crore.

    In his complaint, the whistle-blower Arvind Gupta had demanded an appropriate investigation into ‘illicit banking and commercial relationship between Videocon Group of Venugopal Dhoot and ICICI Bank’s MD & CEO Chanda Kochhar’s family owned NuPower Renewable Group steered by her husband Deepak Kochhar. Videocon Group led by Mr. Venugopal N. Dhoot has made hefty political contribution of Rs. 11.1 crore to the Bhartiya Janta Party’s (BJP) led Union Government during the year 2014, as against just Rs. 5 lakh in the previous year.
    Chanda Kochhar, a known friend of PM Modi, is alleged to have favoured Videocon Group in its lending practices. She was one of the first big corporate names to have lent her support to PM Modi’s pet scheme, Swachh Bharat Abhiyan, by making it mandatory for ICICI branches to actively take part in the campaign.
    The consumer appliances maker has blamed Prime Minister Modi, the Supreme Court and the Brazilian government for the current misfortune plaguing the company. A report by Bloomberg said that PM Modi’s demonetisation decision in November 2016 chocked supplies for making cathode ray tube (CRT) televisions and forced Videocon to shut the business.
    Once a household name Videocon flashed advertisement with the tagline of 'neighbour's envy, owner's pride',. Today its proud owner is gone bankrupt who once sponsored BJP's political fund .

    From runway Nirav Modi “Trust Forever” is the tagline , Rotomac 'Likho India ki Nayi Pehchaan', 'Ajay Bharat, Atal BJP': Modi's slogan for 2019 polls is really 'shining India' from 'Party of difference'.
    Jai Hind

    DisAgree [5] Agree [19] Reply Report Abuse

  • NN, NN

    Thu, Sep 27 2018

    "Neighbors envy owner's pride" is the ONIDA slogan and not Videocon slogan.

    DisAgree Agree [9] Reply Report Abuse

  • peddu, Mangalore

    Wed, Sep 26 2018

    This is a clear case of UPA problem... If Videocon was not created during Congi Era the chances of it going bankrupt would not be there...
    We will have a few hundred extra pakoda makers... not many to buy the Pakodas though...

    DisAgree [10] Agree [11] Reply Report Abuse

  • Tell The Truth, Mangalore

    Wed, Sep 26 2018

    Each and everybody who has taken loan from bank during congress regime..and not return are now become bankruptcy..when started to recover by present government.

    DisAgree [18] Agree [7] Reply Report Abuse

  • sumanth, Skal, mlore

    Wed, Sep 26 2018

    Mr Dumb, videocon is a multi crore business not a Pakoda stall to run without any kind of loan. Loan is considered as NPA if emi is unpaid till 3 month

    DisAgree [2] Agree [7] Reply Report Abuse

  • Rathan, Mangalore

    Wed, Sep 26 2018

    Cyril and swamy
    Why other companies in same type of business r flourishing after 2014or 2016?, because they r well managed. This dooth was working as dooth of some family. Wanted to dupe Indian banks but chowkidar did not alliw. All loans to thus group was sanctioned prior 2014

    DisAgree [20] Agree [8] Reply Report Abuse

  • Karthik, Konaje /Navi Mumbai

    Thu, Sep 27 2018

    Choukidar only taking care of Guju bhais aa?

    DisAgree [2] Agree [9] Reply Report Abuse

  • Cyril, Mangalore

    Wed, Sep 26 2018

    Everything is not okay after Modi Effect

    DisAgree [15] Agree [50] Reply Report Abuse

  • Swamy, Mangalore

    Wed, Sep 26 2018

    Result of BJP fake development. Sab Ka Saath Sab Ka Sathya Naas Aur Hindustan Ka Diwala.

    DisAgree [15] Agree [63] Reply Report Abuse


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