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• Prospecting Oil & gas in Sudan, Jordan & Yemen is rife with political risk.

• It will have to compete with the Chinese and the Koreans in the space. The competition will be tougher as it is a shrinking market.

• In the cut-throat world of durables and electronics manufacturing, controlling the cost of production is vital.
  

• A sharp drop in plasma and LCD (liquid crystal display) prices could hit this plan hard, especially in the global markets, where it may be left saddled with huge capacities and high operating costs.

• The rising input costs.

• There is the issue of breaking new ground in terms of geographies and product segments.

• The consumer really is not price sensitive today. If you are giving quality products and the latest technology, they want it. Then they won't compromise. As for our prices, in every product category be it colour televisions, refrigerators, or washing machines.

Facing Criticism for Current Move

According to analysts, the CPT market is saturated and the LCD and Plasma screens will take over in the near future. So it will be difficult to leverage the Thompson Deal.

The Videocon Industries has already made bids for oil exploration in Sudan, Nigeria and Jordan. It is targeting blocks in the Middle East and Africa for exploration. There is criticism that these places are not politically stable and it is a very risky move.

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* Contributed by -
Manasi Panigrahi,
Pursuing MBA, Batch of 2006,
ICFAI Business School, Hyderabad.