Japanese imaging major Canon is looking to grow its India business to make it account for five per cent of global revenues. The company is betting on the rising income of middle class in India and is targeting revenues of $1 billion by 2015.
Key market
“India plays an important role for Canon as a market. Currently, it accounts for less than 2 per cent of Canon's global revenues but we expect it to grow to 5 per cent,” said Mr Fujio Mitarai, Chairman and CEO, Canon, at a media round table. Globally, Canon reported revenues of over $45 billion in 2011. In addition to taking advantage of a growing market, the Japanese major is also looking at the possibility of setting up a call centre here.
“I will go back to Japan and tell my team to look into the possibility of setting up a global call centre here,” said Mr Mitarai. The company is already doing software development in the country as part of its global Research & Development programme.
There are, however, no plans to set up a manufacturing unit yet. “There are no plans to set up a manufacturing unit in India but if business grows and sales picks up then we will consider it,” he said adding that the Government should take steps to improve infrastructure that will help encourage foreign players to set up a manufacturing base. Globally, Canon has 30 manufacturing units including 13 in Japan and six in China.
Sales outlook
In 2010, Canon's sales in India amounted to Rs 1,260 crore which grew to Rs 1,525 crore in 2011. As part of its vision for 2015, the company hopes to earn Rs 2,280 crore in 2012.
To achieve this objective, Mr Mitarai said Canon will invest in improving dealer network and will focus more on business machines segment. Canon is also looking to enter the medical imaging segment and is open to mergers and acquisition in this area.
On the challenge from mobile handset makers in the camera segment, Mr Mitarai said that there was no threat from mobile phones.
“There is no pressure from mobile camera phones. The whole market is growing and we will coexist with them,” he said.