The ascendency of India as an economic world power

Canon is mainly famous for two things- printer and camera. It has strong market share in these two products in many countries of Asia. It has witnessed healthy growth in Indian market in the recent months. Canon Inc. (NYSE:CAJ) is now looking to do better in Indian market. In fact, it is expecting that its sale will become double in one year.

The Hindu wrote:

The company said it would focus on retail business, launch new products and raise its brand appeal in the Indian market as part of its expansion strategy in the country, and aims Rs. 800 crore turnover next year.

It would spend around Rs. 100 crore on marketing, including promotional campaigns at regional and national levels involving Sachin Tendulkar and opening exclusive Canon showrooms across the country.

It is amazing, isn’t it? India is now a very competitive market. Then, Indian economy is growing and the number of middle class people with disposable income is growing too. Many companies are finding Indian market as big enough to set up manufacturing plants. Thus, you can find manufacturing plants of cars, computers, mobile phones and what not! However, Canon bosses feel that the time has not come yet for them to start manufacturing Canon products in India.

India Times wrote:

Japanese electronics major Canon Inc is not keen on setting up a manufacturing unit in India due to the country's poor infrastructure, it said.

"Infrastructure is a huge problem in India, which is why we are not much interested in setting up a manufacturing unit here," Kensaku Konishi, president and CEO, Canon India, told reporters here on the sidelines of an event.

"We have factories in China, Malaysia, Vietnam and Thailand and these are essentially our export hubs as well. So for us to set up a manufacturing unit in the country means it needs to have an excellent supply chain management with sophisticated infrastructure," Konishi added.  

Well, I know that Kensaku Konishi is much smarted than me and he knows his business. However, I just wish that he could take a second look about setting up a manufacturing unit in India. Everyone is doing it these days. If Canon is late then it may lose to its rivals.