Canon aims Rs 1,000 crore turnover by 2010

Canon India Private Limited (CIPL), the wholly-owned subsidiary of Canon Singapore Pte Limited, is looking at achieving a Rs 1,000 crore turnover by the end of 2010.

The company achieved a turnover of Rs 665 crore turnover in 2008, a growth of 31 per cent over the previous year.

“This year given the market conditions we are aiming for a 25 per cent growth compared to 31 per cent last year. We hope to touch Rs 840 crore. Sales have been going good in the first five months of this year despite recession,” said Kensaku Konishi, president and chief executive officer, CIPL on the sidelines of a promotional event in Kolkata.

In the January to May period overall sales of CIPL have been up by 21 per cent compared to the same period last year, pointed out Alok Bharadwaj, senior vice president, CIPL.

In Q1 of 2009, Canon’s market share in eastern india increased to 30 per cent while nationally it was 21 per cent.The company has gained market share in many of the product categories like laser printer,copiers etc. In laser printer CIPL now holds a 30 per cent market share nationally,holding second slot after HP, the market leader.In copiers Canon leads with 22 per cent market share in India, said Bharadwaj. “Going by this growth rate we hope to touch Rs 1,000 crore turnover by 2010,” said Konishi.

Although India’s contribution is less than one percent to Canon’s global business,CIPL would continue to invest in India since it is a growing market and relatively well insulated from the current recession. “Because of the rupee depreciation and fluctuation of Indian rupee it is difficult to maintain prices at last year’s level, but if the trend of rupee appreciation continues then we might look at reducing prices,” said Konishi.

CIPL has infused Rs 100 crore this year, taken from its parent company to increase its capital base from Rs 24 crore to Rs 124 crore in India to support its finance models for its rental business to larger corporates. The company expects east to contibute Rs 160 crore this year.

“Last year, the eastern region contributed Rs 110 crore, roughly 17 percent of total busines, this year we expect Rs 160 crore from Eastern region, a growth of 30 per cent,” said Bharadwaj.