Canon India fails to achieve the projected target of Rs 2350 crore revenue, and has set a revised target of Rs 1868 crore for this calendar year. This would leave the company to grow only by 1% against the projected 25% growth.
Canon India executive VP Alok Bharadwaj was quoted saying, "The target line has now shifted. The rupee depreciation and the demand slowdown had its impact on the company, even though we did increase prices of some of our products."
One of the reasons of this flat growth may be attributed to decline in the sales of entry-level compact cameras by 30%, in a scenario where cameras contributed around 45% of the total Canon India's revenue amidst printers, copiers and scanners.
Asked whether Canon India would follow the same route as competitors to exit the entry-level compact cameras, Andrew Koh, senior director, Imaging Communication Products Group, Canon India said that the company would put more efforts but it won't neglect or exit the entry-level compact camera business. He adds, "We still believe catering to the whole market because for certain markets they are still looking for compact cameras."
He further added, "Where ever there have been decline in compact camera segment there has been a rise in DSLR, so it has balanced the revenue as the revenues may be three times the entry level. That offsets the decline of the revenue for the entry level."
Canon India is betting high on DSLR range of cameras and targets 80% of the revenue from this segment to its overall camera business revenues in 2015.