Mirc Electronics, maker of Onida televisions and appliances, is open to selling the business and plants if it gets a good price even as it focuses on taking the place vacated by Videocon as a dominant Indian brand, company chairman Gulu Mirchandani has said.
While the promoters are not in the market to sell Mirc having turned it profitable in the last two quarters, if “someone like a private equity fund comes with 5-6 times valuation, we may look into it”, Mirchandani told ET.
“However, such opportunities might be less since India does not attract foreign investment like China,” he said. “So, the focus is on rebuilding the business and become a dominant Indian brand.”
The company wants to take the place vacated by debt-ridden Videocon while focusing on television and air conditioners and exploring an entry into refrigerator, he said.
Mirchandani said his younger son Kaval G Mirchandani, who has worked with contract manufacturer Flextronics in China and California, is being groomed to eventually succeed him in the top position. Kaval Mirchandani, 43, is already on the company’s board and looks after sales and service.
Mirchandani said Mirc wants to gain in territories where Videocon was strong like Uttar Pradesh, Andhra Pradesh and Rajasthan where they are appointing distributors. “However, we will not play the price game. We want to double our presence in smaller towns from 4,000 outlets now,” he said. Mirc is open to join hands with large contract manufacturers who can utilise the company’s manufacturing plants, he said.
