India’s largest consumer electronics maker Videocon Industries has informed that its talks to buy the mobile handset business of US-based Motorola Inc. are in the early stage.

Last month, it was reported that the company was keen to acquire the handset business of Motorola, which is planning to separate its mobiles business from other operations.

Motorola has a 15 per cent share of the global handset market and analysts value the handset business at $3.8 billion.

In a separate release, Videocon has stated that it will start rolling out its mobile network under the subsidiary Datacom Solutions from mid-August and aims for a 10 per cent market share in the Indian telecom market in five years.

The company has received a license to operate services in three circles and has been allotted spectrum, the radio frequencies that enable wireless communications. It also has ambitious plan regarding the launch of 3G services in the country.

Further, the company also plans a major consumer electronics retail foray across West Asia, Europe, Africa and Latin America under the brand name "VC" to raise global revenue shares from the current 2 per cent to 50 per cent by 2011.

Videocon is also studying the viability of a bid for General Electric Co’s appliances division, which produces refrigerators, air-conditioners and ovens.

The net profit of Videocon Industries rose 8.6% to Rs 251.22 crore on a 16.8% rise in sales to Rs 2514.91 crore in Q4 March 2008 over Q4 March 2007.