Salora in brand-licence pact with Japan's TEAC

Consumer durables manufacturer Salora International today signed a brand-licence agreement with Japan's home entertainment system major TEAC to manufacture, market and distribute its products across India.

The agreement would see TEAC providing Salora with technical know-how of its products as well as assistance in manufacturing them. Salora would also be responsible for marketing and distributing the audio-visual products across India.

"TEACs initial offerings to Indian consumers would include televisions (plasma, LCD and others) , audio-systems and a gramophone-record player that comes with an option to transfer music from LPs to CDs," Gopal Jiwarajika, managing director of Salora, said here today.

The companies have decided to go in for aggressive pricing of the range to make swift inroads in the market. Prices of TEAC audio-systems would range between Rs 6,000  and Rs 30,000, televisions would cost between Rs 5,000 and Rs 17,000 and plasma TVS would start from Rs 1,40,000.

Refusing to comment on the business Salora expected in the first year of operations, Jiwarajika said: "We want to create an awareness for these innovative products first before setting a target."

The company is planning tie-ups with various multi-brand retail stores and there are no immediate plans to have single-brand retailing, Jiwarajika said.