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Nikon India foresees robust growth, rules out local manufacturing amidst market expansion

BNE News Desk , June 22, 2024
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Nikon India, a prominent player in the camera and imaging equipment sector, anticipates crossing Rs 1,000 crore in annual revenue by the end of the fiscal year despite refraining from local manufacturing. Managing Director Sajjan Kumar revealed that all cameras are currently imported due to the insufficient scale for Nikon Corporation to establish production facilities in India.

Keizo Fujii, managing director overseeing Nikon's operations in South-East Asia, Oceania, Africa, and the Middle East, highlighted the potential for growth in India's digital camera market, emphasizing its strategic importance despite challenges. The company reported net revenue of Rs 965 crore for FY24 and aims for Rs 1,060 crore in FY25, projecting a 9.8 percent increase.

In FY24, Nikon India sold an estimated 250,000 digital cameras, with expectations to reach 265,000 units in FY25. This growth contrasts sharply with the massive smartphone market, where approximately 150 million units are forecasted for FY25. Despite lower volume, the digital camera market's revenue performance is notable, generating around $375 million in FY24, approximately 1 percent of the smartphone market's revenue.

Fujii underscored India's uniqueness in Nikon's global portfolio, particularly due to its substantial wedding industry, which significantly contributes to Nikon Corporation's revenue in Asia and Africa. Kumar added that the market for mid- to high-end cameras has been robust, with the average selling price rising steadily post-pandemic to Rs 140,000 ($1,700).

While Nikon faces stiff competition from Canon, Fujifilm, and Sony in India's digital camera market, estimates suggest these companies dominate over 85 percent of the sector. Nikon holds a significant share, trailing Canon closely, with Sony leading in average selling price.

Despite focusing on cameras, Nikon has ventured into healthcare since 2022, with this sector now contributing 5 percent to its annual revenue. Kumar indicated plans to expand further into healthcare, aligning with government initiatives in the sector.

The company remains optimistic about future growth, banking on increasing demand for higher-end cameras driven by content creators' needs for professional-grade equipment with advanced connectivity features.

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