Japan crisis could hit Canon India revenues by 5%

Imaging and printing major, Canon, has said damage inflicted by the earthquake and tsunami in Japan will hit revenues from India operations by 5% this year due to glitches in supply of critical components.

The company, which had clocked revenues of Rs 1,257-crore from India in 2010, "definitely" stands getting impacted by the events in Japan, its President and Chief Executive, Kensaku Konishi, told PTI here.

"In percentage terms it can go up to five% of our topline as the supply lines get hurt," Konishi said.

He added that none of Canon's own facilities in Japan has had any impact due to the twin disasters but some suppliers who manufacture components have reported damage.

"Canon factory has not suffered...We are okay. But we are worried about the parts suppliers. We are getting indirect impact," he said.

There will be no impact in the short-term as the company and channel partners are currently holding stock but over the long-term, it will be more pronounced.

Konishi said it is difficult to say which products in its portfolio will be more impacted as every product gets some components from Japan, but emphasised that company will be working for minimising the impact.

But all its competitors also stand getting impacted as everybody sources products from Japan, he said, adding, Canon India also imports from Taiwan and China, and those supplies are continuing normally.

Thousands have died and billions of dollars of damage has been reported due to the earthquake and tsunami which hit Japan last week.