NIFT UG 2016 Question Paper with solutions

  Toshiba Corp will exit the television and home appliance business in India and prune losses after failing to cut much teeth in the country as the Japanese company struggles globally to recover from a multi-billion dollar accounting scandal. Toshiba has informed key trade partners and dealers in India about its decision and has stopped importing goods for over a month now, four senior industry and trade executives said, asking not to be identified. The company is trying to clear inventory, they said. The parent company is exploring options to license the brand or tie up with an Indian company to sell consumer electronics products. It has held exploratory talks with Videocon, although no deal has been finalised. When contacted, Videocon chairman Venugopal Dhoot denied that the group is in talks with Toshiba for any brand licensing deal or business relationship. For laptops, Toshiba will focus on business-to-business sales. “The Toshiba group is undertaking a fundamental restructuring of its visual products business and personal computer business globally,” a Toshiba India spokesperson said in an emailed response to queries. “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.” The company will focus on the profitable and sustainable B2B as a core activity and will expand its customer base. “Toshiba has recognised India not only as a growing market but also as a strategic export and development base,” the spokesperson said. Toshiba faces one of the biggest accounting scandals in Japan after overstating profit for seven years. It is expected to make a $4.5 billion loss in the current financial year, cut several thousand jobs and undertake a global restructuring that includes exiting several businesses. A senior industry official said several employees in Toshiba’s Indian consumer business have already quit the company, while business head Sanjay Warke has been given another responsibility. Toshiba’s exit comes after Sharp Corp last month announced its decision to sell its Indian operations after failing to make significant progress in the country’s consumer electronics market and due to recurrent losses of the parent.