Canon plans Rs 40 cr investment in India

NEW DELHI: Identifying India as a key market for the South and South East region, global photographic and digital imaging major Canon has said it would invest about Rs 40 crore in brand building exercise as it eyes to touch a turnover of Rs 500 crore by next year.

"We have experienced good growth in India, currently at about 30 per cent. To further consolidate the growth we will be investing about Rs 30-40 crore in marketing and brand building exercise," Canon India President and CEO Alan Grant said here.

The company, which introduced 51 new products for both consumer and small office and home office segment, is targeting a turnover of Rs 500 crore by next fiscal, he added.

"Our growth in India last year was primarily driven by the copier segment, but going forward we expect the compact digital camera segment to contribute significantly," Grant said.

Out of a total turnover of about Rs 290 crore, 50 per cent came from copier segment, while the digital camera contributed about 16 per cent, which the company expects to increase to 27 per cent.

"This year we are expecting to touch 1,00,000 units of digital camera, nearly a growth of about 200 per cent compared to last year," he said.

The company is also expanding its distribution network with plans to increase its retail chains to 100 by next year. By December this year the number will go up to 45 from the current levels of 35.

Canon is also planning to increase the number of its flagship stores to 442 by the end of next year. It currently engages 227 retail outlets including 140 IT Imaging Zones, 40 Digiclick zones, 14 Home Cinema Centres, three Canon X'perience and 30 Canon Care Centres.

Grant said Canon, which is currently the second biggest player in the digital camera segment in India, is looking to topple the leader in India, Kodak.

"We have about 20 per cent market share in the digital camera segment and the effort is to improve upon it and be the number one," he said without specifiying any timeframe.

The top three players, Kodak, Canon and Sony have almost similar market shares, he added.

Canon's launch of 51 products today, including new digital cameras, digital video camcorders, scanners and printers, is its largest ever portfolio launch in a single day.

"This is being launched simultaneously as elsewhere in the world," Grant added.