Of the total size of 5.4 million CTVs in the Indian market, the market share of Aiwa CTVs is 9 per cent. Adds Mr Mulchandani: "With the price reduction strategy and introduction of pure flat CTVs, the company expects the market share to grow to 15 per cent in two years."

Baron is engaged in the marketing and distribution of 5.5 lakh Aiwa CTVs per annum. Says Mr Mulchandani: "As part of the marketing strategy, the company plans to increase the number of franchisees across major cities from 100 in the current year to 500 in three years time. The company generates 15 per cent of the sales through the franchisees."

Baron is also drawing up strategies to penetrate the rural markets. The company has already appointed 100 dealers to cater to the rural demand. The company has a dealer network of 3,500 dealers in major metros.

Foreseeing tremendous growth in the CTV market by 2010, Mr Mulchandani reasons: "The colour television companies would, in all, generate 15 million sets per annum by then."

Baron has so far spent Rs 7 crore on the advertising campaign for the two-year zero per cent interest free consumer schemes in order to buy Aiwa CTVs with a deposit of Rs 2,500 and installments of Rs 500 per month.

ACs from TCL in Summer 2001
The Rs 120-crore TCL-Baron International Ltd is introducing air-conditioners and refrigerators under the TCL brand name in summer next year. The company is adopting a direct selling strategy in order to market TCL mobile phones.Says Mr Mulchandani: "We plan to market TCL air-conditioners and refrigerators in India at a competitive price targeted at the middle-to- premium end of the market."

Baron International, which has a 49 per cent stake in TCL-Baron, is engaged in the marketing and distribution of 3,50,000 sets of TCL CTVs priced at Rs 10,500. The models are targeted at the low-end of the market.

Mr Mulchandani adds: "With the new products in the pipeline, the company expects the turnover of TCL-Baron to increase to Rs 280 crore in three months, and to Rs 400 crore in the next two years."

TCL CTVs has picked up a share of two per cent in the market. Hitachi has garnered a one per cent share of the market. Adds Mr Mulchandani: "At present, we are concentrating on the hi-fi CD segment as the market for audio CDs is growing at 32 per cent per annum and for video CDs at 51 per cent per annum."