Sony aims to treble India revenue; targets Rs. 20,000 crore by 2015

Electronics major Sony India on Thursday said it is targeting to treble its revenue to Rs. 20,000 crore by 2015 even as its Japanese parent continues to suffer losses globally due to adverse conditions in major markets such as Europe and the US.

Going forward, the company may also consider setting up an assembly unit in India, provided local regulations and tax structures make it attractive.

"For India, we have set a challenging and mid-range target of increasing our revenue three times by 2015. We are looking to achieve a sales of Rs. 20,000 crore in India," Sony India Managing Director Kenichiro Hibi told reporters.

The company had clocked a turnover of about Rs. 6,300 crore in 2011-12 and is expecting 35-40 percent jump in the current fiscal, he added.

Hibi, who took over the reins of the Indian operations in July this year, said the country will continue to be among the top five markets of Sony Corporation. It is currently the fifth largest after Japan, the US, China and Brazil.

"Our growth will be based on three main pillars TV, personal computers and smart phones. However, other segments like audio systems and cameras will also contribute significantly," he added.

Sony India's announcement of this sales target comes at a time when its parent is reporting losses due to unfavourable foreign exchange rates, impact of tsunami in Japan, floods in Thailand and adverse market sentiments in developed countries.

In the first quarter ended June 30, Sony Corp posted a rise of 1.36 percent in its global sales at 1.52 trillion yen. However, it saw its net loss widening to 24.6 billion yen during the period.

For the year ending March 31, 2012, Sony Corp reported 9.58 percent fall in its sales at 6.49 trillion yen. Its net loss also widened to 456.7 billion yen in the year..

"There are concerns in other global markets like Europe and China, but fundamentals in India are very strong. Demand here is strong and people are still coming to showrooms and buying our products," Hibi said.

When asked if the company would consider setting up an assembly unit in India, he said Sony India is talking to the headquarters in Japan for this.

"Setting up of an assembly line will depend on market circumstances. We cannot say yes or no. We have to look into the present FTA treaties that India has signed with countries like Malaysia, from where we import TVs and audio systems.

"However, we are considering this option, but we don't have any concrete plans," Hibi said.

Under the current rules and tax structures, importing all the goods is the best option for Sony India, he added.