The company is currently in the process of sending out communication to dealers in select cities informing them of the deal between the two companies.

It is learnt that the arrangement was finalised recently with the Hitachi Home Electronics Asia (S) Pte Ltd, Singapore-based subsidiary of the Japanese company.

Industry sources further stated that the alliance is expected to be announced in a few days. Baron is also learnt to be finalising a mega promotional campaign to push the brand.

It is understood that Hitachi televisions would be positioned at a premium to Aiwa, though Baron may extend the aggressive pricing and marketing strategy to pull consumers to the brand.

It is further learnt that Baron has drawn up attractive incentive schemes for dealers who deposit advance with it forplacing supply orders. The incentives would include E-200 Mercedes car for those paying as much as Rs 1.21 crore as advance. The company is offering incentives in kind to dealers who pay up over Rs 5 lakh as advance. These incentives range from colour televisions sets to Tata Sierras, Opel Astras and Mitsubishi Lancers.

For thos opting for credit notes, the incentive is as high as 16.5 per cent for advance payment of Rs 1.21 crore. Hitachi had been scouting for a marketing partner for the last two years to introduce its products here. Senior executives from Hitachi on several visits to India in the past have expressed keen interest to enter the electronics and white goods business.

The Japanese company is already a significant player in the airconditioners business. The company owns 32.5 per cent equity stake in the Ahmedabad-based Lalbhai-family promoted Amtrex Appliance. Hitachi had acquired the stake late last year and Amtrex has since then been renamed Amtrex Hitachi Appliances Ltd.

BaronInternational too had been keen to make a foray into the white goods business after tasting phenomenal success with Akai brand.