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Canon not keen on a manufacturing unit in India


New Delhi : Japanese electronics major Canon Inc is not keen on setting up a manufacturing unit in India due to the country’s poor infrastructure, it said.

“Infrastructure is a huge problem in India, which is why we are not much interested in setting up a manufacturing unit here,” Kensaku Konishi, president and CEO, Canon India Pvt Ltd, told reporters here on the sidelines of an event.

“We have factories in China, Malaysia, Vietnam and Thailand and these are essentially our export hubs as well. So for us to set up a manufacturing unit in the country means it needs to have an excellent supply chain management with sophisticated infrastructure,” Konishi added.

However, the company, which already has a research and development (R&D) centre in Noida near Delhi, is planning to open up another in Bangalore by mid-2008 with an investment of Rs.100 million.

“India is a potential R&D hub for us but it does not have much expertise in hardware development,” Konishi pointed out.

Canon India, which completed its 10 years of operation in the country this year, is planning to invest Rs.1 billion in 2008 and achieve revenues to the tune of Rs.8 billion by the end of 2008.

The company is also planning to ramp up its headcount to 700 from the present 520.

“We have plans to expand the organisation strength to over 700 by 2008. We will be undertaking an aggressive recruitment strategy to tap skilled and trained workforce,” said Alok Bharadwaj, vice president, Canon India.

On the retail front, Canon will be opening six large exclusive showrooms across the country spread over 3,000-5,000 sq ft. It is also planning to increase its retail tie-ups to 20 from the current 13.

“Our retail chains contribute over 50 percent of our business,” Bharadwaj added.

The company has so far launched 78 products in 2007. In 2008 it is planning to launch over 80 products ranging from digital cameras, camcorders, professional camera lenses, photo printers, inkjet printers, laser printers and scanners.