Sony India’s revenue for FY14 is estimated to be about Rs 10,000 crore (Rs 100 billion), compared to Rs 8,200 crore (Rs 82 billion) in FY13.
Computer devices under the VAIO brand contributed 20 per cent to Sony’s turnover, third only to televisions under the Bravia brand, which makes up for 35 per cent of its revenues, and Xperia range of mobility devices the company claims accounts for close to 30 per cent.
Digital cameras under the Cyber-shots brand name gives Sony India 15 per cent of its revenues.
Responding to a questionnaire, Sony India said it would continue to retain repair parts and after-care services according to the Indian law.
The company will also cease all sales and marketing activities related to VAIO, after the clearance of its Spring 2014 line-up.
With a significant chunk of its product portfolio out of the window, Sony in India is left with TVs, digital cameras, smart phones and gaming consoles.
Of this, gaming consoles under the Playstation platform is a separate entity, controlled by the London-headquartered Sony Computer Entertainment Europe.
As part of its restructuring plan, TVs will be hived off into a separate unit, a wholly-owned subsidiary of Sony Corporation.
Sony India says the TV business will not see a change due to the restructuring.
“The purpose of this change is to strengthen the TV business. It will not have any direct impact on customers.
“The sales and marketing activities will continue in a robust manner as in the past,” said the company.
With its losses mounting in the TV business, the pressure to recast the business is growing.
Last month, Sony global CEO Kazuo Hirai had indicated the emphasis of the TV business would shift to larger, high definition televisions.
In Indian terms, this would mean screens with a ticket size of Rs 150,000 and above, which is largely pushed into corporate offices, say analysts.
Sony ranks among the top three flat panel TV makers in India, fighting tooth and nail with South Korean chaebols LG and Samsung in the estimated Rs 12,000-crore (Rs 120-billion) market.
Although the propensity for larger screen sizes has been growing in India, lay consumers typically don’t cross the Rs 100,000- price point while buying a flat
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