The Hindu Business Line : Canon expects India to chip in 20-25 pc in S-E Asian revenues

As per the mid-term vision, Singapore and Malaysia are expected to account for 20 per cent of revenues each, while Thailand will account for 15 per cent of revenues in the region.

New Delhi , July 16

CHALKING out a larger role for its India operations in its strategy for the South and the South East Asian markets, Canon Singapore has outlined its mid-term vision which entails growing India's share in the regional revenues to 20-25 per cent by 2008, from the existing about 8 per cent.

With this, India would become the largest market for Canon in the South and South East Asian region.

In 2004, India accounted for about 7 per cent of revenues. Canon Singapore has under its wings four operations — India, Philippines, Malaysia and Thailand. For the North-Asian region, Canon has headquarters in Beijing, which covers operations in Taiwan, Hong Kong, and a joint venture in Korea.

"We have completed a mid-term plan for 2008 encompassing product lines and market ability, where we identified Vietnam, India, China and Thailand as emerging markets, keeping in view of the economic index and outlook. We expect Canon India to show a four times growth in sales by 2008. This means that the Indian market will account for 20-25 per cent of Canon's South and South East Asia revenues by 2008," Mr Kazuto Ogawa, President and CEO of Canon Singapore, told Business Line.

As per the vision, Singapore and Malaysia are expected to account for 20 per cent of revenues each, while Thailand will account for 15 per cent of revenues in the region. With India projected to contribute 20-25 per cent to the revenues, the balance will come from geographies such as Pakistan, Bangladesh, Myanmar, and Indonesia amongst others.

"As far as the office equipment market is concerned, we expect Canon Singapore to transfer its know-how in sales and marketing to its four subsidiaries to enable them to grow faster," he said.

Canon India had witnessed a 13-15 per cent growth in its revenues during the first half of 2005. "We expect the second half to see a growth rate of 30 per cent. Much of the thrust will come from the digital camera business, which is expected to account for 25 per cent of Canon India's turnover by 2007, compared with 12 per cent in the first half of 2005," Mr Alok Bharadwaj, Vice-President, Canon India, said.

Mr Bharadwaj said that the company had grabbed 18 per cent market share in the digital camera business in the first half of the fiscal, and hopes to push this number to 20 per cent in the second half of the year.

The company did not divulge the number of units that it sold in India.

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