Netherlands-based consumer durables major Philips on Monday said it has entered into a five- year licensing agreement with Videocon to market its television sets in India.
"We have entered into a brand licensing agreement with Videocon under which it will assume the responsibility of selling and after sale services of Philips consumer television set in India," Philips India CEO Murali Sivaraman told reporters here today.
He further added that under this agreement, Videocon which has a large integrated presence in the country will sell Philips colour television in the country manufactured by Videocon itself, according to the specifications and standards maintained by Philips globally.
The company expects that with help of large sales and distribution network of Videocon across the country it will increase the presence of television sets in the country significantly.
Philips, which is operating in India for more than 80 years, has earlier said that it is strategically shifting its focus on healthcare and life-style segment to promote its products in the country.
Videocon had recently failed to acquire Finland-based consumer electronic maker Elcoteq. Last September, both the companies had announced that they have signed a non-binding Letter of Intent for negotiating and finalising a potential Definitive Transaction Agreement.