Sony India expects to reach turnover target

NEW DELHI, NOV. 27. Sony India, the wholly owned subsidiary of Japan's Sony Corporation which plans to be among the top three players in the consumer audio-visual market by 2003, expects to reach its turnover target of Rs. 720 crores for the current financial year.

It is also planning to launch a wide range of new products including personal computers, flat colour TV sets, digital reality home theatre systems, GSM phones and digital cameras early next year.

This was disclosed here today by the Sony India Managing Director, Mr. Teruo Ishii, who said the company had achieved a turnover of Rs. 200 crores in 1995, its first year of operations. Since then, the company registered a 30 per cent growth every year. In the 1999 financial year, it had achieved a turnover of Rs. 613 crores.

He told newspersons that the company broke even in 1997-98 with a profit of Rs. 12 crores and since then has been making modest profits. He said the company's gross block investments in the country till now is Rs. 77 crores including manufacturing and software operations.

Last year, the company undertook a further expansion of factory operations in Dharuhera when new lines were laid for the flat CTV range and a few audio models. Currently, he said the company has a market share of 7 per cent and 45 per cent in colour televisions and hi-fi audios.

Mr. Ishii, however, expressed concern over the introduction of entry tax of 4 per cent in Haryana. This will impact the company negatively and affect its profitability and competitiveness. The company has made representations to the authorities on this issue.

He said the first half of the financial year was slow and the festival season also did not come up to expectations. However, there was a growth in large screen colour TVs during this period.