NEW DELHI, May 13: Canon India Pvt Ltd is planning to set up a manufacturing base for photocopiers in India with an initial investment of US $ 9 million. It is in the process of conducting a study to identify the location at which the plant is to be set up.

It has already set up a cent-per-cent-owned subsidy in the country. The present thrust of the company is on the photocopiers market, where the company holds 50 % market share worldwide. In India, Canon plans to have 20 % market share in photocopiers by the turn of the century. According to Dr Tony Fitzgerald, managing director, Canon India ``We will be manufacturing one model of photocopier initially.

The plant is expected to be commissioned by 1998 end.'' The company plans to emphasise on the black and white photocopier segment in the first phase, which is expected to grow at a rate of 20 % per annum. In the colour photocopier segment, the company expects the market to double by the turn of the century.

Canon is scouting for good quality component suppliers for photocopiers from the local market, while some of the main components will be imported. By 2002, the company plans to achieve 65 % indigenisation. In the next five years, the company may set up a manufacturing base for its other products.Canon has had distribution arrangements for variety of its products like cameras with Mahata Camera Corporation, facsimile machines with Larsen Toubro, electronic typewriters with Network, computer peripherals had a marketing and distribution alliance with Wipro and HCL, and laser printer and bubble jet printers also with Wipro and HCL. ``The company now plans to carry on with the distributors but the entire function will now be headed by our New Delhi office,'' disclosed Fitzgerald.

In the photocopier segment, the company plans to go in for direct selling, followed by good after-sales service. The idea behind this is to educate the customers about the difference between the photocopier and a xerographic machine. ``We are targeting mainly the corporates and 15 % of our sales from the shop owners,'' said Fitzgerald.

Canon is likely to face a great amount of disappointment from the grey market as the products available there are likely to be much cheeper. But, the managing director is confident that they will stem the grey market, mainly by educating the customer about the difference in quality.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.