Videocon Telecom, the telecom arm of Videocon Group, is venturing into new businesses, even as it hopes to post ₹1,658 crore revenue in the financial year 2017-18 from both new and existing ventures.
The new businesses the firm is venturing into will include retailing of CCTV cameras, smartphone accessories, smart homes and city solutions and mobile VAS.
The operator, which had shut its operations in the Punjab circle this year, expects new businesses to rake in ₹300 crore and the remaining ₹1,358 crore from the existing business this year.
“Self-sustaining business lines is the company’s mantra while selecting new business to venture into. All the business lines, be it existing, newly set up or upcoming, our first criteria is that the business should be cash positive from the word go, and we don’t have to burn any money to make it run,” said Videocon Telecom Chief Executive Officer Arvind Bali said in a statement.
Videocon is venturing in the smartphone accessories market and will offer range of products, including smart watches, smart bands, Bluetooth headphones and speakers, power banks, earphones, chargers and cables.
“Smartphone accessories market is about ₹8,000 crore in India, and likely to grow 20 per cent year-on-year,” Bali added.
Videocon also provides B2B enterprise communication solutions under the brand name ‘Videocon Edge’.
“Looking at the potential of the market, we had set up the enterprise communication solutions vertical last year. The vertical has done fairly well last year, created a good funnel of enterprise and government sector customers.
The enterprise communication solutions market is estimated at ₹1,600 crore, and considering we are a recent entrant in the market, we are targeting a fair market share this financial year. Our ambition is to be among the top three players in the market by 2020,” Bali said.
Videocon Telecom’s existing business lines include broadband and fiber to the home business in Punjab, Haryana and Himachal Pradesh, wholesale International Long Distance (ILD) carrier business, smart solutions, tower business and security & surveillance.
“Our tower business although small, but is profitable. Our focus this year will be to sweat the asset by increasing tenancy on our existing towers and diligently add new towers”.
The company’s wholesale ILD business will continue to rank among the top five in the country.