New Delhi, Aug 24: Japanese electronics major Sansui is planning a joint venture with Dhoot family of the Videocon group for manufacture and marketing its range of consumer electronics goods including colour television.

The joint venture between Sansui and Kitchen Appliances India Ltd (KAIL), a company floated by the Videocon group to market kitchen appliances, is expected to be finalised by towards the end of this year. Videocon sources said that discussion on equity sharing has not concluded as yet. Sources closely associated with the project confirmed that a new company for marketing of Sansui brand of televisions, video disk players and audios would be formed within four to five months of operations.

The Sansui televisions are due for launch mid-September, while the video disk players/changers will be introduced in December. A new line of audios will be launched in October, sources added.

Videocon, which had entered into an alliance with Sansui for marketing its range of audios in India over two years ago, had recently shifted marketing of Sansui range of audios to Kitchen Appliances India Ltd.

Besides marketing the Sansui audios, Kitchen Appliances markets a range of home appliances such as microwave oven, coffee machine and sandwich maker under the Kenstar brandname. The Kenstar products were launched late last year.

Sansui-Kitchen Appliance alliance has identified televisions as a thrust area. The Sansui televisions would be positioned as a multinational product but the unique selling proposition for the product has not been finalised as yet, sources said.

Sources added that the Sansui televisions would be targeted at the mid-to-upper segment of the market. The 20-inch televisions are expected to be priced at Rs 16,000. The company will also launch 21-inch colour televisions.Sansui expects to sell about one lakh television sets in the first year of operation. ``We are targeting a market share of 4 per cent in the first year,'' said sources. The televisions would be assembled by Videocon under an original equipment manufacturer (OEM) agreement. Videocon is currently one of the largest manufacturers of televisions in the country. In addition to manufacturing and marketing its brands, the company is also marketing the Toshiba range of televisions. The Toshiba televisions are targeted at the premium end of the market, while the Videocon televisions are positioned as a low to mid-range brand. The company has recently announced a new series of televisions - the Independence series - to commemorate the fiftieth year of India's Independence.

Earlier this year, the Dhoot family had formed two joint ventures with another Japanese conglomerate - Matsushita Electrical Industrial Company - to set up companies to manufacture airconditioners and washing machines in India. The Dhoot family had settled for a minority stake of 30 per cent in these joint ventures.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.