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Despite supply chain-related challenges and inflationary pressures, imaging products maker Nikon India said it is witnessing strong recovery trends on the back of the positive consumer sentiment during the festival season and the ongoing wedding season. The company expects strong double-digit growth in this financial year compared to the last fiscal.
Recovery over festival season
Sajjan Kumar, MD, Nikon India, said, “We saw strong recovery trends during the festival season despite certain supply chain challenges with shortages. But we have been focusing on meeting consumer demand. The wedding season this year looks very promising too, which is one of the key demand segments for us.”
The company said that vloggers, hobbyists and content creator segments have been among the key growth drivers during the pandemic. With easing of mobility restrictions, professional segment demand is also picking up.
Also see: Mirrorless camera Nikon Z 9 launches in India
“Overall, we expect to clock a growth of about 40 percent and hope to end this financial year with revenues of ₹745 crore compared to ₹520 crore in the previous fiscal,” he added.
The company imports all its products from factories in Thailand and Japan.
Minimise inflation impact
Asked about inflationary pressures, Kumar said, “We are trying to keep our products competitive and minimise the impact on consumers. So, while there are challenges, we have kept the MRPs of our existing products untouched. In the future, we will need to see how things pan out and focus on bringing in more efficiencies in our system. While supply-chain issues are improving, we are hoping things become more predictable and smoother over time.”
The company’s products are sold through about 1,500 retailers in the country. This includes 139 Nikon Experience Zones, which it plans to ramp up in the next two years.
Also see: Gaming, VFX industry bounce back after getting hit by pandemic
“Currently 65 per cent of the demand for our products is coming from the top ten cities in the country and 35 per cent from Tier 2 and Tier 3 cities,” he added.
India is among the top five countries globally in terms of value contribution for Nikon’s Imaging business with the Indian business contribution pegged at about 5 per cent.
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