Lighting products and appliances maker Bajaj Electricals Ltd (BEL) announced that it has entered into a strategic pact with Nardi Elettrodomestici Spa, Italy’s leading household appliances company and one of the largest supplier of appliances to modular kitchen manufacturers.

The deal has been signed up to launch ‘Bajaj Nardi’ brand of home appliances, in the Indian market, which will be marketed and distributed via BEL’s strong network in India and the SAARC region.

Moreover, the alliance will also permit BEL to expand its product basket to premium kitchen products to deal with the rising built-in appliances and modular kitchen market in India.

Nardi has its presence in 80 countries and holds around 40% market share of the competitive Italian home appliances market.

Mr. R. Ramakrishnan, Executive Director of Bajaj Electricals, said, “Nardi’s technological expertise and insights of the international markets will help Bajaj in expanding the offering. The company will introduce customised products for the Indian market that will be manufactured in Italy in the first phase.”

Mr. Ramakrishnan also said that the company will explore assembling of some products and combined manufacturing in India during the later phase of expansion.

Initially, Bajaj Nardi will launch the range of hobs, cooktops & chimneys which will be expanded to other products like OTGs, Designer Microwaves, free standing and built-in Ovens, Dishwashers and other appliances which are considered as integral household appliances for the changing needs of Indian kitchen.

Marco Nardi, chairman, Nardi Elettrodomestici Spa stated, “India has potential to become double than the European market. Our main objective will be the modular kitchen and product ranges like hobs and hoots.”

Mr. Ramkrishnan added that the Bajaj Nardi is looking at 25% market share in the top-end segment in a span of 3 to 5 years..

The company executives said that the Indian home appliances market is pegged at Rs 4,000 crore with brown goods segment largely dominated by the unorganised players.

The company has also decided to spread the new brand through about 8,000 out of 25,000 of its subsisting distribution dealers and make its presence in the specialized retail stores.

The Nardi partnership will boost the topline of the Bajaj’s appliances business. Last year, the company’s appliances operations recorded earnings of Rs 375 crore, and is likely to touch Rs 501 crore in FY2009.