Sony India eyes Rs10,000-crore revenue milestone driven by TV, digital imaging businesses, says MD Sunil Nayyar

Sunil Nayyar, Managing Director, Sony India

Sony India aims to achieve a revenue of Rs 8,500 crore for the current financial year, primarily driven by significant growth in its smart TV, audio, and digital imaging businesses, fueled by the market's trend towards premiumization.  If this growth trajectory continues, the company could surpass Rs 10,000 crore in revenue within the next couple of years, Managing Director Sunil Nayyar told Moneycontrol.

The company saw over a 20 percent increase in sales, reaching Rs 7,664 crore last year with a profit of Rs 225 crore. It had clocked a revenue of Rs 6,353 crore in 2022-23 and Rs 5,161 crore in 2021-22.

Sony India is bullish during the festive season. It aims to drive sales by significantly investing in marketing, especially for its Bravia TV portfolio. The company has also roped in filmmaker SS Rajamouli as the brand ambassador for its Bravia televisions.

“In 2015, we were over Rs 10,000 crore in revenue. It was when we had a Vaio laptop and Xperia smartphone business. It was with the full power of Sony that we could reach it. For this year, we expect to be around Rs 8500 crore. That's the target. And then, in a couple of years, we should hit over Rs 10,000 crore. We are set for 10-15 percent value growth this year,” Nayyar said.

In 2019, Sony exited the mobile phone market in India, citing dwindling sales. Japan’s Vaio previously joined hands with Nexstgo to launch new ultraportable laptops in India. Sony India isn’t involving in selling Vaio laptops in India.

At its peak, Sony India's revenue exceeded Rs 11,000 crore in FY15. India is Sony's fourth largest market globally, after the US, China and Japan.

“If the same growth momentum continues, then we hope India climbs up the ladder in ranking. India is big and is emerging. It has growth potential. So if we club everything together the way we are moving now, with all the categories, there is no reason why we shouldn’t become even bigger,” he added.

The company is focusing on increasing the average selling price (ASP) across categories to increase revenue. “India’s macro environment is very strong. While I am worried about global volatility, India will be in a sweet spot once that is addressed. India’s income pyramid is getting better by the day. As long as this continues, growth will happen,” he said.

The executive said the ongoing premiumisation trend is helping Sony drive its smart TV sales in the country. The company is targeting 20 percent value growth this fiscal year.

“Our overall share is rising. For (TV sets of) 55 inches and above, there isgrowth. We are the dominant brand in this category. Even the 43-inch segment is growing. The only degrowth segment is maybe 32-inch and 40-inch (TV sets). So that's how the market is shaping up. And as far as the total market is concerned, we will continue to grow nicely in 75-inch and above at a pace of maybe more than 50 percent,” he said.

The company is spending up to Rs 300 crore on marketing its TV business this year. “Fifty to sixty percent of it will be spent during the festive season," Nayyar said.

Even in the soundbar segment, Sony claims to be the largest brand in the Rs 15,000 and above price segment with a 53 percent share. “We have doubled our soundbar business in a year and wish to do that again this year,” he said.

Sony India's digital imaging business grew 25 percent in the last fiscal year. "We are the dominant brand in the wedding segment, which is the largest camera segment in the country. The overall digital imaging business has doubled in the last two years,” he claimed.

Gaming is also growing for Sony India, up 125 percent last year, with Gen Z opting for its Playstation gaming consoles.

For Sony India, the offline channel contributes the most to its sales. Still, the contribution of the online channel is also growing at a high double-digit growth, Nayyar said, adding that the company expects to ride on the quick commerce bandwagon by making its products available for 10-minute delivery in metros.

“We are making a synergetic approach to online and offline channels, which has rewarded us so far. We are already present in quick commerce with Playstation and headphones. We don't mind making other devices available through this channel. It’s a customer revolution,” Nayyar said.