Nikon India missed FY12 sales target due to tsunami in Japan

The Japanese firm's sales dip nearly 20% in FY12, clocks Rs 750 cr in revenues

Digital imaging major Nikon India's sales dipped nearly 20% in FY12, owing to the tsunami that struck Japan last year, a company official said today.

The Japanese firm, which had earlier forecast sales of Rs 900 crore for FY12, clocked Rs 750 crore in revenues.

"Due to the tsunami in Japan [in March last year] and floods in Thailand [post mid-2011], our factories were affected. Our sales stood at Rs 750 crore as against Rs 900 crore we had predicted for FY12," Nikon India Managing Director Hiroshi Takashina said.

However, the company is eyeing a growth of 60% in sales to Rs 1,200 crore this fiscal, he said. "For FY13, we are expecting a turnover of Rs 1,200 crore."

Nikon India also expects to increase its contribution to the company's global sales to a "sizeable amount" in the next three years.

"Currently, India business contributes nearly 1.5% of Nikon's global sales. But we think it is small considering the demand potential. We expect to make this to 5% in the next three years," he said.

The company, which today launched a new range of Nikon Coolpix cameras, aims to have a bigger slice in the compact camera market and maintain its leadership position in the digital single lens reflex (DSLR) category.

Nikon India enjoys a 25% market share in compact camera market, which is currently around 32 lakh units, up from 24 lakh units in FY11.

"We expect the compact camera market to touch 40 lakh units by 2012-13. We have set a target of capturing a 30% share in this growing market," he said.

Meanwhile, Nikon plans to maintain its current 55% share in DSLR market, which is expected to grow at 40-50% year-on-year over the next five years.

"New launches will help us maintain the leadership position in the segment," Takashina said.

At present, the company sells 18 models of compact camera in India and 10 models in the DSLR segment. "We plan to increase the number of DSLR and Coolpix outlets from 93 to 110," he said.

Asked if the company would increase its prices because of the customs duty hike proposed in the Union Budget, he said: "It [Budget] was just announced. We haven't yet discussed or decided. We have just launched Nikon 1 and a few models in Coolpix. So, it is very difficult to change the prices at this moment."