Sony, Foxconn to make TVs in India
Multinationals are making a beeline to make in India, and Japanese major Sony is the latest to join the cue.
The company has teamed up with iPhone maker Foxconn to set up an assembly unit in Sriperumbudur in Tamil Nadu to manufacture two TV models, which will include one of its flagship BRAVIA products.
Sony has earmarked ` 750 crore for marketing expenses in 2015-16.
The Japanese major has entered into the agreement with Foxconn’s subsidiary Competition Team Technology (India) Pvt Ltd.
“India has been an important strategic market for Sony,” Sony India MD Kenichiro Hibi said. “This development underlines our commitment to this market as well as our alignment with the government of India’s ‘Make in India’ programme,” he added.
Sony has reviewed all aspects of the manufacturing operations, market situation and other factors such as product lifecycle, lead-time and costs to ensure that the venture remains competitive, he said.
Once BRAVIA and other models are manufactured locally, it will further strengthen Sony’s presence in the country, Hibi said.
Sony India clocked sales of ` 10,600 crore in 2014-15.
“BRAVIA is the highest-selling category and contributes more than 40% to the overall sales of Sony India,” Hibi said.
“There is buoyant demand in this market, it is likely that a big chunk of TVs sold in India may originate from this unit in the future,” he added.
The Indian market for white goods and TVs is poised to grow 17% annually, and presents a big opportunity given the low market penetration levels, a Ficci-EY study has said.