The Mulchandanis-promoted Baron Electronics had recently entered into a marketing and distribution alliance with Japanese consumer-electronics major Aiwa Company. Additionally, Baron will manufacture and service Aiwa brand on an exclusive basis in the country. According to an aggressive roll-out plan, Baron Electronics will launch Aiwa's hi-fi audio systems, colour televisions (CTVs), video CD players and general audio products.

In the audio segment, Baron proposes to offer an extensive range in the mid-to-upper segment of the market comprising 20 models priced between Rs 8,000 and Rs 40,000. The company proposes to expand the hi-fi audio market from Rs 180 crore to Rs 400 croreper annum, and in doing so capture 60 per cent market share.

Aiwa, which is 50.6 per cent owned by Sony Corporation of Japan, is better known for its innovation in the audio segment. The company has to its credit the launch of many new products in this segment such as radio-cassette players.

As per early indications from the company, Akai and Aiwa are expected to be pitted against each other. Said a company source, "Aiwa could be marketed as aggressively as Akai."

A company statement here said that it proposes to sell 2.4 lakh units of hi-fi systems worth Rs 400 crore, five lakh colour televisions valued at Rs 600 crore, one lakh VCD, worth Rs 80 crore, and four lakh general audio systems with a combined value of Rs 120 crore.

Baron is planning a marketing coup in the audio market driven by exchange scheme and free software. In addition, it is lining up a number of exchange schemes, offering Rs 8,000 off on all audio products and free gifts of 50 audio and video CDs worth Rs 20,000 on a productcosting as much. Sources said the company is tying up with international and domestic software companies to make titles available to its customers.

On the distribution front, Baron Electronics plans to use most of Akai dealers. Sources added that some new dealers may also be recruited. Meanwhile, Akai continues to be third-largest CTV brand with an almost 16 per cent market share.