Indian firm keen to buy Motorola's handset unit

Indian consumer electronics maker Videocon Industries will bid for the handset unit of Motorola if the US firm decides to sell the business, a Reuters report said. Venugopal Dhoot, Videocon's chairman, was quoted saying, 'We learnt from a reliable source that they will be selling it and when they do we are sending an expression of interest.'

Motorola declined to comment on Dhoot's remarks, the Reuters report said.

Last week Motorola announced it would split into two publicly traded entities in 2009, separating its mobile phone unit from the rest of the business that makes TV set-top boxes and network equipment. Analysts reckon the split will help Motorola negotiate a joint venture or sale for its mobile phone business, the Reuters report said.

'It may be a very serious business for us because we have got mobile phone licences for 22 circles in India. Apart from that, we have our own retail network with about 1,000 shops where we sell mobile phones,' Dhoot, quoted by the Reuters report, said. He added Videocon was well positioned for a bid, which could be financed from internal accruals and debt.

India is the world's fastest growing mobile market, gaining more than eight million users a month.