Sony to invest $100m in India to scale up business

Source:Xinhua Published: 2012-10-30 15:11:01

Consumer electronics and information technology products manufacturer Sony India will invest 5.5 billion rupees ($100 million) this year in expansion and marketing plans in India, a top company official said Tuesday.

A substantial amount of this investment will be spent on scaling up the mobile business.

Sony India had invested similar amount last year in expansion and marketing its new products.

The company will increase its retail outlets to 16,000 shops by next year from 10,000 now. Some of the outlets will be exclusively for the handset business. Sony had earlier bought out Ericsson's stake in that business.

Sony India Managing Director Kenichiro Hibi said the mobile business contributed to around 15 percent of Sony India's revenue of around 63 billion rupees ($1.145 billion) last year and it is expecting better contribution this year. The company expects 40 to 45 percent growth in its overall revenue this financial year.

He said the company's strategy is not only to add value to the mobile business, but also to integrate all mobile devices such as tablet personal computers and other electronic items.

On competition from Samsung, Apple, BlackBerry and Nokia, Hibi said: "We have to fight them. But, at the same time what we should not forget is that we have a uniqueness of Sony brand in India and utilise that strong proposition for the mobile business as well."

The company, which already has a portfolio of premium handsets, has now also come out with mid-range products in the smartphones category.

Sony India has around 1,000 engineers in its Bangalore centre in India's southern state of Karnataka who contribute to developing applications and features on India-specific handsets and also for global products, he said.

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