Sony Corp Targets $300m Revenue From India By Year 2000

Sony Corp has targeted a $300 million revenue turnover out of India by year 2000, which is a threefold increase from its current revenues of about $100 million or Rs 350 crore achieved by the wholly owned subsidiary Sony India Pvt Ltd in 1996.

The Indian subsidiary, which sold 120,000 colour televisions last year, is targeting sale of 160,000 CTVs along with its audio-video models in the country in 1997.

Sony, which has been hampered from introducing its walkman models in India because of stiff import duties, has also decided to manufacture these products at its Dharuhera manufacturing facility in Haryana from December this year.

 

Yesterday, the company launched 'Mavica' - a new floppy based digital still camera - in the capital. Sony initially plans annual sales of about 500 pieces of this product which made its international debut in August 1996. The $47 billion consumer electronics multinational currently sells 30,000 pieces of the Mavica each month worldwide.

Meanwhile, Sony India has fulfilled its commitment to the government of direct equity investment of $16 million in three years by bringing in the balance $6 million in July this year. The earlier equity capital base of the country was about $10 million. It has also exceeded indigenisation targets of 20% that it had proposed by 1998 in its application submitted and approved by the government in 1994.

The current localisation levels vary between 25 per cent and 30 per cent depending on the specific products and models.

Sony India's current target growth of 32.3 per cent in 1997 over 1996 by selling 160,000 CTVs against 120,000 CTVs last year, is a come-down from what the company had targeted initially.

Beginning with a first year sales of 25,000 CTVs, the company was targeting to sell 100,000 units in 1996, followed by a 100 per cent growth in 1997 with sales of 200,000 units, and 300,000 units in 1998.