Videocon Industries is on the lookout to sell its Direct-To-Home (DTH) business Videocon d2h to one of its rivals. The entire idea behind this move is to build scale with subscribers but with a lower stake.
Videocon is in talks with one of the largest DTH operator in the US in order to form a joint venture. However, conditions stemming out of a possible merger include minimal overlapping in the customer footprint and synergies in the DTH positioning. Though players like Tata Sky, Dish TV denied having any talks with Videocon, consolidation is slated to happen soon. Foreign DTH operators are keen to enter the Indian market but government’s restriction of foreign ownership to 26% in domestic concerns is stopping them. A rise in FDI limit is potent enough to spell a complete change in the DTH space with both foreign and domestic companies looking to come together. Another player who is also treading the same line is Reliance Digital TV who is planning to dilute stake to raise anywhere between INR 20-25 bn.