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Baron cuts prices to spur volumes
Mona Mehta
Mumbai : In a bid to spur volumes, the Rs 910-crore Baron International Ltd has reduced prices of its entire range of Aiwa colour televisions (CTVs), hi-fi music systems and the TCL range by Rs 500 per unit, this month. Prior to the reduction, the price range of Aiwa CTV - which is targeted at the middle-to-premium end of the market - stood between Rs 10,400 and Rs 16,950. Similarly, the price of Aiwa hi-fi music system before the price drop was in the range of Rs 7,990 to 24,990. The price of the DVD range was at Rs 44,990.Says a dealer, Mr Sunil Poddar, Sumaria Electronics Appliances: "As a part of its cost reduction strategy, the company has started embedding Chinese parts within its entire range of Aiwa CTVs, hi-fi music systems and TCL range, hence the prices are lower compared to its competitors - Philips, Samsung and Thompson".Says Mr Poddar: "The company is marketing the TCL branded VCD range at Rs 4,990 to its customers with an added advantage of five VCDs free of cost compared to its competitors `Samsung' and `Thompson' VCDs which are available at Rs 10,000. However, customers do not avail of five VCDs for free with the purchase of either `Samsung' or `Thompson' VCDs". Adds Mr Poddar: "Similarly, DVDs from TCL are priced atRs 13,490 compared to the `Philips' DVD range which is available at Rs 21,000". According to Mr Poddar: "Baron's move to reduce prices this month may create a price war in the CTV market". However, Baron International chief executive officer Mr Kabir Mulchandani was not available for comments on this issue.The value share of competitor BPL has grown by 39.9 per cent and the volume share by 16 per cent in the current year. Similarly, LG has grown by 35 per cent in terms of volumes. Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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