With plans for double-digit growth across India’s semiconductor and healthcare sectors, Japanese tech giant Canon eyes booming opportunities in this country.
Japanese company Canon, specialising in imaging and optical products, has identified significant growth potential in India for its semiconductor lithography equipment, which is crucial for chip manufacturing.
Toshiaki Nomura, the President and CEO of Canon India, stated that the company is in active discussions with various companies establishing semiconductor facilities in the country.
Although Nomura did not reveal specific names, he emphasised the growing interest in India as a semiconductor manufacturing hub, which presents significant opportunities for Canon. He noted that many chip manufacturers are looking to India as a new production base, and Canon is in talks with these companies to provide its equipment and services.
This allows Canon to contribute its advanced technology and products to the expanding semiconductor sector, helping manufacturers set up substantial facilities and install the necessary equipment to support India’s industry.
The company is currently in the negotiation phase with various potential clients. Canon believes this momentum is expected to continue, driven by favourable factors such as economic growth, urbanisation, and a youthful demographic.
Canon’s optimism extends beyond its traditional sectors, including imaging, printing, and surveillance. The company is expanding into industries like semiconductors, flat panel displays, and healthcare.
Nomura expressed confidence in the healthcare segment’s potential, noting Canon’s success in Japan with diagnostic medical imaging products such as CT scans, MRIs, X-rays, and ultrasound machines. Canon aims to replicate this success in the Indian market to benefit local healthcare infrastructure.
Canon is also encouraged by the positive reception of its ‘NorthStar’ initiative, a comprehensive platform offering advisory services, equipment, and related services to studio operators. The initiative is designed to streamline studio operations and enhance production efficiency.
Looking ahead, Canon India anticipates continued double-digit growth across both its consumer-facing (B2C) and institutional (B2B) segments. The company is particularly excited about India’s vast market potential, with factors such as rapid GDP growth, a young and growing workforce, and increasing urbanisation contributing to its optimism.
In addition to metropolitan areas, Canon is focusing on tapping into the expanding tier II and III cities, using its partner network to drive growth in these emerging markets.
Regarding specific industries, Canon plans to strengthen its presence in IT, pharmaceuticals, banking and financial services, and government sectors.
While it expects further growth in its traditional DSLR camera market, especially with rising demand from sectors like wedding photography, wildlife, and content creators, Canon is also increasing its efforts in the mirrorless camera segment. This segment faces stiff competition from rivals like Sony and Fujifilm in India.
For the financial year 2022-23, Canon India reported a revenue of ₹31.48 billion, with a net profit of about ₹1.4 billion. Canon India operates as a 100% sales and marketing subsidiary of Canon Inc. Japan.
