After Sharp exited Indian market last month, it’s the turn of Toshiba to say good-bye. In a major re-structuring decision, Toshiba has decided to quit TV and Home Appliances business in India, as they will only focus on B2B niche selling laptops and electronic equipment in the country.
In fact, due to mounting losses worldwide, Toshiba has decided to be involved in B2C business only in US and Japan. They are quitting all other countries including India.
In a statement, Toshiba said, “The Toshiba group is undertaking a fundamental restructuring of its visual products business and personal computer business globally”, adding, “Toshiba already stopped their operation of television sales last year in India and is currently considering a brand licensing structure regarding its overseas television business, including India. Regarding the PC business, Toshiba will end the B2C business in markets other than Japan and US.”
However, Toshiba may use India has a strategic hub to expand their portfolio in coming years. It seems that they will be focusing on India as a partner for their future expansion.
They said, “Toshiba has recognised India not only as a growing market but also as a strategic export and development base,”
Is Videocon Buying Toshiba?
After reports emerged about their exit from Indian market, rumors are floating that Videocon may purchase their TV division in India. Videocon and Toshiba have been long time competitors and time maybe ripe for Videocon to make that move and climb higher within the competitive Indian market.
In fact, as per TOI, Videocon has initiated talks on some levels regarding a possible merger. But Videocon chairman Venugopal Dhoot has denied any such talks as of now.
Strategically, Videocon’s acquisition of Toshiba can be a good tactical move, as Samsung, LG and Sony may get some competition from the Indian brand of TVs.
Toshiba’s Downfall: $1.2 billion Accounting Scandal
Last year, Toshiba’s fortunes took a beating when their president and CEO Hisao Tanaka stepped down after $1.2 billion accounting scandal was discovered inside the company. For the last 6 years, Toshiba’s officials had been over-reporting their revenues and sales which proved too costly for the company.
Vice chairman and former CEO Norio Sasaki was also shown the door while, and Chairman Masashi Muromachi took over as interim CEO in August.
Although there were no evidence to prove that either Tanaka or Masashi was involved in this mega-scam, but they had to quit after public anger increased all over Japan; where ethics and morality is more important than profits and revenue.
Such was the impact of this scandal that Toshiba is expected to incur a loss to the tune of $4.5 billion in the current fiscal year ending March, 2016. Several thousands of jobs have been cut as several business verticals are being drastically cut to save losses and to focus on the necessary things.
We will keep you updated as more details come in regarding Toshiba’s current plans in India.
Header Image: Shutterstock.com
[…] […]