Sony India to spend Rs 450 crore on marketing this fiscal
Sony India on Tuesday said it will enhance its marketing spend by 25% to Rs 450 crore in the country this fiscal in order to push sales. The company said it is targeting a 30% jump in turnover this fiscal from Rs 6,313 crore posted in fiscal 2011-12
Sony India on Tuesday said it will enhance its marketing spend by 25% to Rs 450 crore in the country this fiscal in order to push sales. The company said it is targeting a 30% jump in turnover this fiscal from Rs 6,313 crore posted in fiscal 2011-12.
"In 2012-13, Sony plans to pump in an investment of Rs 450 crore on marketing, which will be in sync with the business growth," Sony India managing director Masaru Tamagawa said. Sony India had spent Rs 360 crore on marketing in 2011-12 fiscal.
When asked about profitability of the company, he declined to share details but said: "We are profitable, but not too much." The company said it might look into increasing prices of its products in the second half of the current fiscal, depending upon the exchange rate at that time.
"Till end of June we have fixed rate because we have hedging system. From July onwards, we will have to look into it based on the exchange rate at that time," Tamagawa said.
In order to cater to business growth, the company is also looking to increase its head count in the country by 500 to 3,800 in the current financial year.
"Developing local Indian talent is a very crucial element of Sony's growth story in India. Sony plans to increase its manpower by 500 employees in 2012-13, to match the growing business requirement," Tamagawa said.
This is in contrast to the reported job cuts of around 10,000 globally by the parent, Sony Corporation.
Sony India is also planning to increase the number of its distribution network from 10,400 in 2011-12 to 12,200 in the current fiscal.
It also aims to increase the number of service outlets to 285 by the end of current fiscal from the current 255 touch points.
The company, which sells various electronic consumer goods, including television, laptop and camera, in the country, aims to become the fifth largest contributor to the company's global sales in the current fiscal.
In 2011-12, the company stood at sixth position as per its contribution to Sony's global revenues after US, China, Japan, Brazil and Russia.
When asked if the company plans to have a manufacturing plant in India, Tamagawa said: "We don't have a plan to set up a manufacturing plant. Overall benefit is not attractive to us as the free trade agreement with ASEAN gives us flexibility."