Financial Daily from THE HINDU group of publications
Tuesday, Jun 22, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jun 22, 2004 |
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Corporate
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Announcements Sony India streamlines manufacturing operations Richa Mishra
New Delhi , June 21 SONY India Pvt Ltd, the Indian arm of the Japanese electronics major Sony Corporation, has decided to streamline its business operations in the country by increasing its import of finished goods for providing wider and the latest selection for consumers instead of opting for a full-fledged manufacturing base in the country. To begin with, the company has decided to opt out of manufacturing audio products in India. "By focusing our resources to expand the market by strengthening service and support operations, with five new service centres planned over the next one year, as well as meeting the needs of the consumers, the company will be able to provide better service and a wider range of products at more affordable prices to consumers," a company official said. According to the official, "The present decision to stop audio production was reached as part of Sony India's review of its production structure and in line with Sony's overall review of its global production structure. We aim to achieve lean, efficient and high value-added operations for the whole Sony group." The company has been continually reviewing and streamlining its operations to ensure that it remains competitive in the challenging business environment. It has decided to stop production of audio products by June-end. However, no decision on CTV production has been made at this moment, the company official told Business Line. Regarding what has prompted this decision, the official said, "The market situation has become increasingly competitive. With the rapid advancement of technology and more market accessibility, consumers now have greater access to more advanced and cheaper products. Under such market conditions and as part of the company's continuous efforts to enhance its operations, Sony India has decided to stop production of audio products and increase finished goods importation from abroad." While industry insiders state that with the free trade agreement with Thailand round the corner, players like Sony would like to use their facility in Thailand for the purpose of importing as it would work out cheaper, the official said, "We are aware of the situation of FTA. But our decision to stop audio production is reached as part of the company's overall review of its production structure and not related to FTA in any way." The company's current market share of audios is 45 per cent in value terms and for CTV it is 7.8 per cent in value terms. Agreeing that India has tremendous market potential, the official said, "India is a key market for Sony and has very good potential. Sony India recorded a 20 per cent sales growth last year and it is expected to grow even more in future. Sony aims to strengthen its competitiveness and enhance its overall operations in this country, thereby continuing to contribute to the growth of the Indian economy."
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