CALCUTTA, Dec 16: Canon India Pvt Ltd, a fully-owned subsidiary of Canon Inc, is planning to set up a manufacturing base in India by 1998 to make photocopiers. The investment will be around $7.5 million.

The company, which has a worldwide turnover of $25 billion, is aiming for a market share of 25 per cent in India by 2010. It has already begun its operations in New Delhi, Chandigarh, Mumbai, Pune, Chennai and Bangalore. It had launched its Indian operations in January 1997 and its present market share is eight per cent.

Canon launched its sales and service operation in Calcutta on Tuesday and will operate through an authorised business affiliate-Atul Automation. According to company officials, Canon will open offices in Ludhiana, Ahmedabad, Hyderabad, Coimbatore and Baroda and extend the network to 16 locations by early 1998.

Tony Fitzgerald, managing director of Canon India, said the company is yet to decide on the site for the manufacturing base. Initially, the components will be imported in knocked down condition and by the year 2000, 60 per cent of the products will be indigenised. However, some parts will continue to be imported. Canon is planning to invest $3 million by 2000 for sales support and training.

According to Ravi Bhatia, the head of marketing, the unit will make 10,000 units of Canon's A-model copier a year. Canon will market 11 contemporary black & white models and three colour models of photocopiers in India. In a bid to counter the threat from the grey market, the company is planning to change the models regularly.

Bhatia said the Indian market is growing at a annual rate of 20 per cent and Calcutta's share will be around five to six per cent. Fitzgerald pointed out that, worldwide, 80 per cent of Canon's revenue comes from the sale of copiers and printers. Cameras contribute around eight per cent while calculators and lenses along with some other products contribute the rest of the revenue.

Canon has a 50 per cent share in the colour copier market and 27 per cent in the black and white photocopier market.Established in 1937, the company has 24 manufacturing plants and over 80,000 employees worldwide. According to Fitzgerald, the company spent about 10 per cent of its net sales income in research and development amounting to $1.3 billion.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.