industry

Sony creates new growth drivers in India


KOLKATA: Sony India has been able to reduce its high dependence on television business creating new drivers of growth in audio products and digital imaging.

The company’s managing director Sunil Nayyar said the television business used to contribute 70-75% of total revenue even couple of years back but has now come down to around 60-65%. “The audio and digital imaging products contribution has gone up from 10% to 15% each respectively,” he said.

Industry executives said this will help Sony India to grow overall revenue since it was struggling to create new growth drivers in India after the company globally decided to move out of the laptop business and shrunk its smartphone business which were high performing businesses in India.

These exits had even taken a toll on Sony India’s revenue growth in the Indian market and absolute revenue even declined for two consecutive years. Sony India’s revenue was Rs 7181.84 crore in 2016-17 as compared to Rs 8073.33 crore the year before as per the company’s regulatory disclosure in India. It had posted peak revenue of Rs 11,010.3 crore in 2014-15. Sony India is yet to file its 2017-18 revenue to the Indian regulator.

Sony will also drive growth in premium segment in India across product segments, said Nayyar. For instance, 55-inches and above television already accounts for 20% of its overall television sales as compared to 5-6% two years back. In digital imaging, premium camera accounts for over half of total sales.

With Onam sales a complete wash out for the Indian consumer electronics industry due to Kerala flood, Sony India is targeting 27% television sales growth in West Bengal to achieve Rs 300 crore revenue from the up-coming Durga Puja. The festival period from Onam to Durga Puja to Diwali is crucial for the white goods industry accounting for almost 40% of their annual sales.

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Nayyar said West Bengal is one of the fastest growing market for the Japanese consumer electronics maker with high growth earlier this year due to Fifa World Cup. Sony announced a plethora of consumer promotions for Durga Puja.

The Indian television market is estimated at around Rs 22,000 crore growing at over 15%. The market has off-late become highly cluttered with over 80 brands with several of the newer brands like Xiaomi and Skyworth selling exclusively through online. Several brands like Gome and Blaupunkt are waiting in the wings. Online accounts for almost 14% of total television sales.





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