Nikon India, a subsidiary of the Japanese imaging technology major Nikon Corporation, is eyeing small town India for growth after lowering its growth projections for the fiscal ahead. To this end, its retail expansion will be largely focused on tier-2 and tier-3 towns, said the company’s VP (Imaging) Sajjan Kumar.Last month, the company had lowered its turnover projection for 2012-13 by 8.3% to R1,100 crore from an earlier estimate of Rs 1,200 crore due to slowdown in the economy and rupee depreciation. "To fight such sentiments, we have drawn aggressive growth plans targeting small towns as they are growing at much faster pace," said Kumar. "We have 70% of our sales from the metros and large cities. Now, we have a strong presence in large cities but there is a huge opportunity in the smaller towns." However, during the last fiscal, company had a turnover of Rs 750 crore.
Nikon India is looking at expanding its presence to 3,500 channel partners by March 2013, up from 3,000 currently. Moreover, the company will also expand its shop-in-shops from 93 at present to 110 by next year, where the focus will be largely on non- metros. “We are betting on expanding in cities such as Ajmer, Raipur, Sangli, Bhatinda, Surat, Jamnagar, Baroda and others where the cost of promotion is less and the market is relatively fresh,” said Kumar.
The depreciation of the rupee has impacted the company’s margins heavily and it had hiked the prices of its select digital SLR (DSLR) camera models by up to 1.5% last month. The company may undertake another round of price rise if the situation does not improve.