Canon India eyes 25% revenue growth to Rs 840 cr

Following a sharp drop of 15 per cent in sales in the B-to-B segment, Canon India is concentarting on government and consumer segments to fuel the projected 25 per cent sales growth this year.

The company expects to post sales worth Rs 840 crore during this calendar year despite of a drop of approximately Rs 22 crore revenue in the B-to-B segment.

Canon India senior vice-president Alok Bharadwaj told Business Standard, the company has also introduced interest free loans to its customers through tie-ups with certain credits cards and personal loan providers. Canon India posted sales worth Rs 665 crore during last year, out of which the consumer segment accounted for Rs 300 crore.

The government segment generated Rs 100 crore while B-to-B segment contributed Rs 150 crore. The pofessional segment along with services contributed Rs 115 crore together.

"We expect a 15 per cent drop in the B-to-B segment becasue of the goobal economic downturn this year. Hence, we need to concentrate on government and consumer segments that generate maximum business for the company. Despite of a tough situation, business in the government segment is growing at 15 per cent while consumer sgement is growing at 20 per cent," added Bharadwaj. The company is also looking at new tie-ups with retail chains while new customers are being added from segments like pharma and education.

The company is renting its photocopying machines to corporates, which are not ready to increase capital expenditure. Bharadwaj added, the company expects to post sales worth Rs 840 crore during the on going year, which would reflect a growth of 25 per cent over last year's revenues.