Date:21/10/2005 URL: http://www.thehindubusinessline.com/2005/10/21/stories/2005102101850900.htm

Back Canon eyes Rs 400-cr revenue, to shift marketing strategy

Our Bureau

Mr Alan D. Grant, President & CEO, Canon India Pvt Ltd and Mr Alok Bharadwaj, Vice-President, with models at the launch of 43 new products in the Capital on Thursday. — Kamal Narang

New Delhi , Oct. 20

WITH an eye on increasing its revenues to over Rs 400 crore in 2006 from the expected Rs 310 crore this year, Canon India today launched 43 new products including digital cameras, camcorders, and printers. It also announced a shift in its marketing strategy.

"Our new go-to-market strategy comprises de-layering the distribution channel, emphasising on retail expansion and creating a value shift as we plan to touch over Rs 400 crore in revenues in 2006. Of this, Rs 100 crore will come from the company's camera business," the Canon India President and CEO, Mr Alan Grant, said at a conference here.

Elaborating on the shift in strategy, the company's Vice-President, Mr Alok Bharadwaj, said, "Till now, 85 per cent of our business was coming from entry level models, but we realised that this would not be able to deliver growth or profitability that we are looking for. Hence, we have decided to take a value-based approach, and aim to derive only 40 per cent of business from the low end products and the balance from mid- and high-end models by next year."

The company expects the products launched today to contribute 30 per cent of the total revenues of Canon India by 2006.

It also announced Canon Expo 2005 from October 22 to 24 to showcase over 100 products in the consumer and enterprise segments.