Calcutta, Nov. 19: Canon expects its income from operations in India to go up to Rs 700 crore by 2007, says Alok Bharadwaj, director.
“Canon earned Rs 200 crore in revenues last year. This year we expect our turnover to grow by 20 per cent to Rs 240 crore,” he said.
It earns more than 50 per cent of its revenues from copier sales. Printer sales contribute about 20 per cent, and consumables — cartridges, ink and so on — 15 per cent of Canon’s income.
Canon has a small software development centre in India that employs around 50 engineers. It provides software solutions to Canon’s operations in other countries, and generates 10 per cent of revenues earned by the company in India.
“We expect digital photographic devices to be the key driver for growth. There’s a big market for photographic devices — estimated to be Rs 3,000 crore — and very little is digital.
“What is more, we do not see prices of digital cameras falling rapidly as is the case with a lot of IT peripherals. Prices of some gadgets are falling 10 per cent every quarter,” Bharadwaj said.
These hi-tech devices now contribute less than one per cent of Canon India’s revenues.
Office automation could be another growth driver, the market for which is estimated to be Rs 500 crore annually. Only 46 per cent of office automations is digital.
“Canon has been operating in India for the last six years. Our cash flow has turned positive this year,” Bharadwaj said.