The Hindu Business Line : Akai returns with wider range for launch in Dec

New Delhi, Nov. 11 Japanese consumer appliances and electronics brand Akai is looking to re-establish itself in the Indian market. The company has tied up with Mr Pranay Dhabhai, former Haier India head, to revive its brand image and position in the sub-continent.

Mr Dhabhai, through his firm Global Brands Enterprise Solutions, acquired the licensing and distribution of the Akai brand following Videocon’s exit from the joint venture in September.

“We will be launching the products pan-India in rapid succession. The products will be rolled out by December,” he said.

Akai, a popular brand in the mid-1980s and the 1990s, will introduce products such as televisions, LCDs, home theatres, microwave ovens, refrigerators and washing machines under its brand umbrella. “We will manufacture products through contract manufacturing and also import certain products,” he said. Currently, Akai is building infrastructure in distribution, after-sales services, and research and development.

“Certain softwares, which are key to making LCD and other domestic appliances, are being developed out of India,” Mr Dhabhai said, adding that his company also holds the marketing rights for Sri Lanka, Nepal and Bangladesh.

It may be recalled that Akai Electric Co had a joint venture with Videocon for television and audio products. Akai used Videocon’s distribution and marketing network to consolidate itself in India.

Market analysts note that Akai has high brand recall in the consumers’ mind and has been a Tier 2 and Tier 3 brand. However, if it is repositioned, it will extend significant choice to consumers.

“We estimate an investment of Rs 300 crore to re-establish the brand and also set up third party manufacturing,” an analyst said.

Without giving any revenue projections, Mr Dhabhai said the company is looking to establish itself and the positioning will be in the mid-upper range market.

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