Birla Electricals Ties Up With Delonghi

Birla Electricals, the Yash Birla group company, today announced a marketing and distribution joint venture with Italy-based appliances manufacturer DeLonghi group. The venture will be christened Birla Delonghi.

While the initial agreement is only for marketing and distribution of DeLonghi's product range such as toasters, blenders, cooking hobs, chimneys, built-in-ovens, coffee makers and ice-cream makers, at a latter stage the Italian company may pick up a financial stake in the company.

The Italian major has been keen on entering the Indian market for some years. In 1997, it has signed an agreement with Birla Electricals to market its range of oil-based room heaters.

However, since then, it had not been able to expand its product range. Today, the company said it will take the arrangement with the Birla company forward by setting up a manufacturing unit in the next two years.

"We want to make India an export hub for our other south Asian markets. Indian players, who approached us earlier, were keen on forging only an original equipment manufacturer agreement," an executive said.

"With this joint venture, we bring to India an entire gamut of home appliances of European standards that has already received a tremendous response from the target audience during test marketing," said Yash Birla, chairman, Birla group.

Birla said the company would utilise the existing distribution infrastructure of other Birla group companies such as Birla Yamaha.