Japanese consumer electronics major Sansui has kept its options open by keeping both Videocon International and Baron International guessing as to which of the two Indian companies will eventually get the distribution rights for its colour television products in the country.
A senior executive team from Sansui is scheduled to come in next week to hold discussions with both Videocon and Baron before finalising a formal agreement to market Sansui colour televisions in the country.
The guessing game began when in its letter of confirmation last month to Baron International, authorising it to sell its colour television products in India, Sansui stated that the 'final distribution agreement' would be signed only after the company studied the detailed terms and conditions for the contract.
Meanwhile, Sansui's existing marketing contract with Videocon International for its colour televisions, which was valid till December 31, 1997, came up for renewal with Videocon having already signed its part of the contract and thereafter forwarded it to Sansui for its approval.
Thus, the high level delegation from Sansui scheduled to fly in next week would discuss a distribution arrangement with both companies.
Executives of Videocon as well as Baron confirmed that the Sansui team is slated to meet with the respective company officials for finalising a marketing contract.
However, each company expressed lack of knowledge of any meeting between the other company and Sansui executives.
Simultaneous talks with both companies could imply that the Japanese major was keen to replace an exclusive arrangement with Videocon with one involving more than one distributors.
However, a non-exclusive arrangement might not go down too well with the Indian companies.
A senior executive of Baron International expressed doubts over the success of a non-exclusive arrangement, even while conceding that Sansui's letter to them did not mention an exclusive marketing arrangement.
He told Business Standard: "The Sansui team is meeting with us to sign a final agreement. How can they be meeting Videocon people at the same time?"
He disclosed that while the memorandum of understanding signed between Baron and Sansui authorised the Indian company to market the Sansui CTVs from January 1, 1998, the company was targeting the launch only in mid-February this year.
Meanwhile, Videocon International continues to retain the distribution rights of Sansui's audio products in the country.
The high level delegation from Sansui scheduled to fly in next week would discuss a distribution arrangement with both companies
