India To Start Semiconductor Segment In Coming Years

Toshiaki Nomura, President & CEO of Canon India, believes that the Indian government's robust initiatives and ongoing infrastructure development will drive growth in the semiconductor sector in India over the next few years. As a key player in this sector, with a focus on manufacturing equipment for chip production, Canon is optimistic about growing alongside the country's ambitions in this emerging field.

Since its establishment in 1997, Canon has experienced steady growth, except during the COVID-19 period. This year, the company is close to achieving double-digit growth. Nomura is optimistic not only about the core business of cameras and printers but also about expanding into new product areas. In addition to semiconductor manufacturing, Canon is targeting the Indian diagnostics market, offering X-ray, MRI, CT scan, and ultrasound equipment. The company has also built a strong presence in the surveillance camera market in recent years.

Nomura shared that Canon has been bringing engineers from Japan to understand how Indian customers use their products. For example, Canon's printers are being used in ways that were originally unimagined. "Our engineers never anticipated such innovative uses... Indians are very creative in maximizing the potential of a single product," he said, emphasizing his belief in the concept of "product for India."

On the camera front, Nomura sees a significant opportunity in the creator segment, where high-quality images and videos are in demand. "Youngsters often start with smartphones, but as they require higher quality images to stand out, they upgrade to cameras," he explained, highlighting how cameras and smartphones now complement each other. "This is an opportunity for us."

Nomura also pointed out that with rising incomes and improving infrastructure, India is becoming an increasingly attractive market. "These factors are driving our growth, and our target customer base is expanding," he said. Canon has maintained a leading market share of 30.69% in the A3/A4 laser copier market since 2016, with key sectors including BFSI, IT, manufacturing, aviation, government, and SMBs. The company expects its consumer printer business to grow by 2X in 2023 and anticipates a 10X growth in the surveillance segment by 2026, with the IT/ITes sector contributing 60%, followed by manufacturing, government, and warehousing.

Given the size of the Indian market and its potential, Canon is open to developing products tailored to local needs. "Even our headquarters in Tokyo prioritizes India as one of the most important markets for growth. They are eager to understand what the Indian consumer wants and are flexible in adapting features for this market," Nomura said.

However, Nomura acknowledged the challenge of covering India's vast geography. "Although our service network is extensive, there are still gaps in coverage, particularly in Tier 2, 3, and 4 cities," he noted. With increasing affluence in smaller cities, demand is rising, and Canon is working closely with its partners to strengthen its sales channels in these regions.

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