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R.Y. Narayanan

Coimbatore , Oct. 12

THE Indian arm of Onkyo Corporation, the Japanese high-end audio equipment giant, has recorded the highest growth percentage in Asia for the company last year, reflecting the revival in the Indian economy and the growing change in the life style of the people.

If the company continues in its growth path in the next few years, it may look at options of establishing a manufacturing facility in India.

The company has also tied up with LG and Bowers&Wilkins of the UK for specific products for its Home Theatre systems which has powered its growth in the country and it is interested in forging similar tie-ups for other accessories to meet customer specifications, Mr Barani Kumar, Vice-President, Corporate Affairs, Onkyo Sight and Sound India Pvt Ltd, Chennai, has said.

Speaking to Business Line in Coimbatore on Sunday, he said the Indian arm of the Japanese audio equipment maker began its operations in 1996 and has cornered a major chunk of the market share for high-end audio and home theatre systems in the country. According to an estimation, the market for such equipments was worth about Rs 200-Rs 300 crore annually, of which nearly 50 per cent was the share of the regulated producers with the rest accounted for by the grey market. Onkyo's share of the established market was around 70 per cent.

He said the company's products being marketed in India were high end `life style products', were lower on volume but higher on value and it was a niche market, rather than a mass market, player. But the company was not for distancing itself from music/movie buffs and has been on the look out to bring better systems at more affordable prices.

Mr Barani Kumar said the company was able to offer international quality home theatre systems from prices starting at Rs 38,500 and going up to Rs 20 lakh. For institutional needs, Onkyo also provided customised solutions.

It has tied up with LG for using LG's Plasma monitors and with Bowers & Wilkins of the UK for a specific range of speakers, both for Indian markets. The Plasma screen alone carried a price tag of Rs 3.5 lakh to Rs 9 lakh.

The company has witnessed a growth of 15 per cent on this account alone and this was set to grow further as the market expands. It was on the look out for similar alliances so that it could become a single source for entire gamut of audio- visual solutions from selection to installation meeting diverse specifications. Institutional buyers accounted for 25 per cent of its market and this segment has been witnessing a very high growth rate.

He said as per the ranking of Onkyo Japan, in terms of growth percentage during 2002, Onkyo India was ranked No. 1 in the Asian region, out-shining even China. This reinforced the fact that the Indian economy has been `really on a roll', he said.

While not directly taking the question as to whether Onkyo Japan has plans of establishing manufacturing facilities in India, he said "certainly if the market keeps growing like this, we really will be happy to consider more commitments." He pointed out that manufacturing commitments were large (in terms of investment) and he would not right now commit himself on this.

Mr Barani Kumar however said "if the growth is going along these lines' the company may consider this option since none would like to ignore the market that did so well. Rather one would make more commitments to service and support it that included investment in manufacturing, R and D etc. Such a decision may be taken in two to three years." The company has been recording a 30-35 per cent growth annually and this year, he expected the performance to be still better.

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