Nikon India: Local Manufacturing Not in the Cards Despite Growth

Despite Nikon India robust growth, with expectations to surpass ₹1,000 crore in annual revenue by year’s end, local manufacturing remains off the table, according to Sajjan Kumar, the company’s managing director.

Market Size and Challenges by Nikon India:

Based in Tokyo, Nikon Corporation finds the Indian market too small to justify setting up local factories and supply chains. Kumar highlighted that despite the firm’s growth, the demand for dedicated digital cameras remains limited compared to other markets.

Keizo Fujii, managing director and chief regional officer for Nikon in Southeast Asia, Oceania, Africa, and the Middle East, pointed out that only 2% of smartphone users in India purchase a dedicated digital camera.

The sales volume remains low despite India’s unique market, which is driven significantly by its vast wedding industry. Excluding Japan and China, India contributes 40% of Nikon Corporation’s revenue in Asia and Africa.

Sales Figures of Nikon India:

In the financial year 2023-24, Nikon sold an estimated 2.5 lakh digital cameras in India, and the number is projected to reach 2.65 lakh units by 2024-25.

However, this figure pales compared to the anticipated 150 million smartphones sold in the same period, making digital cameras just 0.2% of the smartphone market by volume.

Post-pandemic, the digital camera market saw a steady increase in size and average selling price. While entry-level camera sales slightly declined, the mid to high-end camera segment grew by 12% year-on-year. Nikon categorizes cameras priced above one lakh rupees as mid-range and high-end.

Competitive Landscape For The Firm:

Nikon faces stiff competition from Canon, Fujifilm, and Sony. Combined, Nikon, Canon, and Sony dominate over 85% of India’s digital camera market, with Canon leading and Nikon in a close second.

Unlike Nikon, Sony has diversified its product offerings in India to include televisions, gaming consoles, and audio devices, while Canon also markets printers.

Diversification into Healthcare:

In 2022, Nikon diversified into the healthcare sector, supplying entry- to mid-range microscopes to healthcare research institutes, the in-vitro fertilization industry, and hospitals.

This segment now contributes 5% of Nikon India’s annual revenue. With the union government’s increased focus on the healthcare sector, Kumar expects further growth in this area.

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