The joint venture company, Akai India Ltd, would manufacture and market washing machines, refrigerators and airconditioners, besides the electronic products such as colour televisions, plasma television and audio products.

Akai products were earlier manufactured and sold in India by Mulchandani-family controlled Baron International. The company had snapped its alliance with its erstwhile partner late last year after Baron tied up with another Japanese company, Aiwa Ltd.

Speaking to The Financial Express from Mumbai, Videocon group chairman Venugopal Dhoot said, the joint venture company would be set up soon with capital base of Rs 100 crore. A part this capital would come in form of equity from the two partners and balance in form of debt. The debt equity ratio is yet to befinalised.

Dhoot added that Videocon would transfer the Salt Lake facility in Calcutta, acquired recently from Philips, to the joint venture. The colour television products would be manufactured at this facility. The white goods such as refrigerators, washing machine and airconditioners would be sourced from various Videocon facility.

Akai, on its part, will make available to the joint venture company the technologies developed at its research and development labs. Besides, it will also make available the premium range of products from its portfolio.

The Videocon chairman added that the company was targetting sales turnover of Rs 500 crore from the Aiwa products. A large portion of the turnover would come from sale of 3.5 lakh televisions.

He added that the new company would continue with the present positioning of the Akai brand for mass market products. Akai India Ltd is also expected to push the brand through exchange schemes.

Dhoot further claimed that the joint venture company would indigenisesome of the hi-tech products such as plasma TV. "We will source the electronics components locally while the display would be imported."

Akai, meanwhile, on a statement issued here said: "Akai has embarked on a joint venture as a part of its overall global strategy to make market realignments in all its major and important potential markets around the world. India has been identified as one such market".

In the first phase of operations of its direct operations in India, it plans to launch a series of technologically advanced products and introduce new product concepts, some of which would be introduced in India for the first time.

It added that the joint venture company has been structured to provide a new management focus towards consumer satisfaction. The company would focus on providing value for money and services within the reach of the average Indian consumer.

Besides, Akai, a subsidiary of Hing Kong-based Semi-Tech (Global) Company, will use its base for distribution and marketing of variousproducts in the international markets by leveraging the manufacturing and quality control strengths of Videocon group.