You operate in a very competitive industry and in a market where customers are both demanding as well as price sensitive. How are you managing costs at the shop floor level to ensure good quality at competitive prices?
At Videocon, we have adapted to an environment that is driven by quality. Whether it is product, processes or practices, there are zero compromises to achieve and maintain it. And in this course, we strike cost effectiveness. We take up total productive maintenance (TPM) which helps us in retaining and improving the integrity of production and quality systems through machines, equipment, and various processes, that add business value to our organisation.
We have also taken up lean manufacturing at all units to ensure systematic minimization of waste. We have implemented a ‘just in time strategy' with regards to all our processes that further helps us to maintain inventory costs. Further, we have also adopted the Kanban and 6 sigma approach to strengthen our manufacturing.
You have a contract manufacturing deal with Coolpad India - a subsidiary of Shenzhen-based handset maker Coolpad Group - to produce five lakh devices in the first quarter of fiscal 2016-2017 from your Aurangabad facility. How's this deal progressing? What are the different products that you are manufacturing as per this deal?
Our association with Coolpad India is on steady grounds and working well for both of us. Our contract is for manufacturing handset screens in the size of 5" and 5.5" across Coolpad brands in India. Till date, we have produced more than 2 million handsets for them.
Continuing from the above question, does the deal also include any kind of R&D activities? If yes, then what are you doing on that front?No, as of now we are not doing any kind of R&D for Coolpad India. However, localization in a few products has progressed.
You have also signed an MoU with BOE Technology Group. What is the nature of this partnership and has the actual work started on it?
Yes, we recently signed a MoU with BOE Technology group and have initiated the designing and manufacturing of LED panels as per the India market needs.
I understand that there is a huge focus on innovation at the Videocon Group. What drives this innovation and how do you blend it the seemingly monotonous manufacturing activities?
At Videocon, we believe that innovation is an amalgamation of ideas and their timely initiating and implementation constitute success. As part of our R&D, we research continuously and introduce new technological innovations based on a stringent new model of development process. This process is driven by customer feedback and market research with Quality being the key potential to achieve.
Rurbanisation or transformation of India's rural landscape is creating a new breed of customer who is economically still evolving and yet is aspirational. How are you innovating to meet the needs of this customer?
We have an extensive line of products that caters to the varied consumer segments, depending on their choice and preferences. Also, the new breed of customers is ever evolving, and so are their demands. This makes up for a sizeable number of the populace in the country. While understanding their requirements, we have stepped up our R&D and manufacturing capabilities to create products that match up this growing demand.
How many manufacturing plants does Videocon have in India? Where are these plants located and what products do these plants manufacture?
Videocon has a pan India manufacturing set up, with 12 units spread across different locations. Our state of the art manufacturing facility located at Aurangabad.
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