Canon shoots past the Rs 1000 crore barrier

DQW Bureau
New Update

Old wines taste better. Companies also

start performing better as they age. It's proving true for Canon

India. After twelve years of existence in India, on October 28, Canon

saw its revenue for the year 2010 (Canon's FY coincides with the

CY) touch the Rs 1000 crore mark. While celebrating the occasion on

the momentous day with some senior editors, Alok Bhardwaj, Sr VP,

Canon India obviously sounded upbeat; Canon further commemorated the

occasion by billing the first order for the next Rs 1000 crore to its

iconic brand ambassador Sachin Tendulkar in a gala occasion on

October 29. Bharadwaj informed that having breached

the Rs 1000 crore-barrier by end of October, Canon India is well on

course to meet its target of Rs 1260 crore by the fiscal end in

December. Both the camera and printer business is expected to

contribute Rs 450 crore each to this kitty with the rest coming from

the VIS business. The managed print service segment itself

contributed Rs 300 crore. Even the future looks rosy, with Bhardwaj

predicting Canon India to garner the next Rs 1000 crore in two years

(in stark contrast to the twelve years it took for the first 1000)

and reach Rs 2000 crore by 2012. Not just that, he predicts Canon

India to cross the one billion dollar mark (nearly 300 percent

growth) by 2015.

The thousand crore barrier was

breached, thanks in no small measures to the strides made by the

printer business. In the laser printer segment itself, Canon

increased its market share from 18 percent last year to 35 percent

this time. While Bhardwaj admits that it would be unrealistic to

expect Canon to sustain this sort of growth YoY (in terms of market

share) the momentum would also not slacken significantly. The 2900

series, that has been instrumental in helping in much of this growth,

however is likely to be phased out over the next year. “We are

however well prepared with our other models to offset any impact of

the 2900 phase out; besides, we have now gained significant mindshare

amongst enterprises, who do not also shift vendor loyalty at a very

short notice,” added Bhardwaj. Canon has been extremely passionate

about its channel partners too and has been striving hard to offer

them maximum margins, sometimes as high as five times its biggest

competitor HP. In fact, the newly built channel loyalty has gone a

long way in Canon India's stupendous success in the last few

quarters. Last but not the least, Bharadwaj is not loathe to admit

that some of HP's strategic miscalculations and internal

restructuring has also helped Canon. While the market numbers bear

out the fact that Canon India's significant growth was at the expense

of HP's market share loss, Bharadwaj further reasons that HP suffered

primarily due to some forecasting miscalculations by HP IPG during

slowdown as well as the departure of some senior HP personnel.

Coupled with this, several channel partners being unhappy with HP's

wafer-thin margins, they wholeheartedly courted Canon. Both Canon and

its brand ambassador

Tendulkar had great 2010. Hope the trend continues in 2011. India

then wins the World Cup and Canon enjoys another stupendous year.