Financial Daily from THE HINDU group of publications
Tuesday, Feb 22, 2005
Financial Daily from THE HINDU group of publications Tuesday, Feb 22, 2005 |
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Info-Tech
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Outlook Canon India eyes 25% growth in 2005 Our Bureau
(From left) Mr Alan Grant, President & CEO, Canon India; Mr Hidenao Yanagi, Minister for Economic & Development, Embassy of Japan; Mr Yukio Yamashita, Senior Managing Director, Canon Inc; and Mr Hideki Ozawa, President and CEO, Canon Singapore, at the inauguration of Canon's new facility at Gurgaon on Monday. - - Ramesh Sharma
New Delhi , Feb. 21 CANON India has said it is eyeing a growth 25 per cent in 2005 to clock revenues of Rs 330 crore, on the back of success across various product categories, especially digital cameras. The company notched revenues of Rs 264 crore in 2004 - a 15-per cent growth from 2003. "With the huge success that Canon India experienced in digital camera business in 2004, the company plans to increase its focus on this category this year. In the next fiscal, Canon plans to increase its market share to 17 per cent from 10 per cent. "The digicam business is the engine of Canon India's growth and will contribute 25 per cent to Canon India's revenues by 2007," the Canon India President and CEO, Mr Alan Grant, said at a conference here on Monday. Terming 2005 as the "year of expansion", Mr Yukio Yamashita, Senior Managing Director, Canon Inc (member of Canon board), said the company would invest Rs 20 crore in 2005 towards brand building and promotion. Canon logged a 100-per cent growth in iR1600 copiers and tapped a market share of 23 per cent. It also clocked a 500-per cent growth in digicam business, cornering a 10-per cent market share. The company recorded a 140-per cent growth in projectors and home cinema business and a 150-per cent growth in laser printers. "Outside Japan, India is the second largest potential market for Canon," Mr Yamashita said. On the global performance of Canon Inc, Mr Yamashita said, "We posted sales revenue of $33.35 billion in 2004, with digital cameras contributing $14 million." Canon has, however, ruled out the possibility of setting up a manufacturing unit in India. He said the company's manufacturing units were concentrated in southern China, and it recently set up a facility in Vietnam, taking into account proximity and easy accessibility of component suppliers and logistics. "We realise that over investment in China would not be advisable. To balance it out, we will have to invest in other parts of Asia. At the moment, we are developing Vietnam as a manufacturing hub. In India, we will continue to focus on R&D," he said. Canon's R&D unit in Gurgaon employs about 50 people. The company also outsources R&D to other IT players, indirectly employing about 250 people. Mr Yamashita said the company was looking at "investing more" in R&D in India, but did not divulge specific plans. "We like to invest more but we need more time as there are other locations, including the Philippines and parts of China," he said, adding that India's strength lies in availability and quality of software professionals.
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