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Bank of Maharashtra to auction Videocon plant in Tamil Nadu
Photo Credit: Wikimedia Commons

Government-owned Bank of Maharashtra will auction the consumer electronics manufacturing plant of Videocon Industries in Tamil Nadu to recover its debt worth Rs 154 crore.

Videocon Industries, which has a debt burden of around Rs 20,000 crore, is undergoing insolvency proceedings at the National Company Law Tribunal (NCLT). 

The electronic auction will take place on 30 March (1.30 pm to 3.30 pm) with a reserve price of Rs 42.3 crore for the land on which the factory sits and Rs 73 crore for the plant and machinery.

The plant at the Sipcot Industrial Estate in Manamadurai was set up by Videocon Industries a few years ago for manufacturing and assembling LED (light-emitting diode) and LCD (liquid crystal display) televisions and air conditioners. Sipcot is State Industries Promotion Corporation of Tamilnadu Ltd.

In February, debt-ridden Videocon Industries narrowed its net loss to Rs 1,023 crore for the October-December quarter of the current financial year 2018-19, from Rs 1,315 crore in the year-ago period. Total income fell sharply to Rs 223.73 crore from Rs 864.34 crore during the period, the company said in a regulatory filing.

In October 2018, The Times of India reported that Chinese electronics maker TCL had expressed interest in acquiring Videocon’s brand name.

Videocon Industries is among 28 large corporate defaulters identified by the Reserve Bank of India (RBI) on the second list of bankruptcies to be resolved under insolvency proceedings. 

Videocon Group’s core businesses are manufacturing, assembling and distribution of consumer electronics and home appliances. The company has facilities at Aurangabad, Shahjahanpur, Warora and Bharuch. It also holds oil and gas assets in India and abroad.

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