Sony eyes double-digit growth in India, helped by premiumisation

New Delhi: Consumer electronics maker Sony India expects a 15-20 per cent growth in this fiscal with the trend of premiumisation in the Indian TV and audio market helping it make a turnaround, a top company official said.

The company's premium television category comprising screen size of 55 inches and above along with audio products would be the "key growth drivers" for Sony India, as the trend of premium products has evolved in the country, Sony India Managing Director Sunil Nayyar said.

"FY24 is also looking very promising. We are looking forward to a growth of 15 to 20 per cent (by value) as an overall company and of course, needless to say, profitability is also going to be good," Nayyar told PTI.

Sony India, a wholly owned subsidiary of Japan's tech major Sony Corporation, had recently in a RoC filing reported a 31.8 per cent increase in profit for 2022-23 and its revenue from operations was up 23.1 per cent to Rs 6,353.74 crore.

Earlier Sony India was struggling with a fall in revenue after its parent firm exited the mobile phone and laptop business. At its peak, Sony India's revenue was over Rs 11,000 crore in FY15.

However, from FY22, Sony India's revenue stabilised and started reporting positive growth numbers.

"It has been a very, very tough time. We were trying to make a comeback. Now the premium market in India has evolved and finally matured," said Nayyar.

Helped by a second consecutive growth reported by Sony India, he said now, he expects growth rates to be even better. When asked about the mid-term outlook for Sony India for the next 4-5 years, Nayyar said: "We are already stitching a growth story. We will continue to grow both the top line and bottom line, continue to innovate, launch and continue to bring new products to the country."

Being an entertainment company, Sony India has an objective to create a "Condo experience" for its Indian consumers, he added.

Now premium televisions especially 55 inch and above screen size are "catching steam in India" and Sony India was a "change agent" in the country to talk loudly about it over the last three to four years.

"We have invested heavily in promoting the premium concept. It has caught on now thanks to OTT platforms such as Netflix, and Amazon, thanks to the quality of content which is streamed in India these days. People have embraced our televisions nicely. Indian consumer verdict is that ‘I need the best TV to watch the best content and in the best possible way’," he said.

Even the recently concluded ICC Men’s Cricket World Cup also further triggered demand for big screen size TV of 75 inches and 85 inches, he added.

"We are easily registering a growth of more 250 to 300 percentage points in two segments of 75 and 85-inch screen size. This has set a new standard now and I am very hopeful this trend will continue," he said adding "TV story is emerging beautifully in sync with Sony India's overall philosophy of promoting premium televisions, especially large screens and our growth is tremendous."

Citing data from market research firm GFK, Nayyar said "55 inches above screen size (value share) In India, Sony is a dominant number and I hope to keep this position." While talking about audio products, Nayyar said it has done well with the noise cancellation headbands and is a leader in the soundbars category.

Its digital imaging business, under which it sells cameras, had a "strong momentum", helped by wedding market dominance. Its gaming business also grew steadily, given a shortage, it said.

Presently, Sony is manufacturing its television in India, in an OEM partnership with Sriperumbudur, Tamil Nadu-based Competition Team Technology.