Canon Accelerates India Expansion: Boosting Imaging, Printing, Industrial, and Medical Sectors

Canon, a global leader in imaging solutions, has announced ambitious plans for significant business expansion in India, emphasizing the critical role the country plays in its global growth strategy. This strategic initiative aims to advance Canon’s semiconductor and flat panel display business, strengthen its medical industry footprint, and reinforce its core segments like imaging, printing, and surveillance. The announcements were made during a strategy meet in Mumbai attended by key global leadership.

Core Business Expansion

Canon plans to enhance its presence in India’s imaging, printing, and surveillance sectors. Leveraging its extensive product range and innovative technology, Canon aims to meet the growing demands of the Indian market. With a focus on providing high-quality, performance-based technology, Canon India aims to become the leading company in the region by 2035, which would position Canon Asia as the top sales region globally.

Mr. Howard Ozawa, Executive Vice President of Canon Inc. and Chief Representative of Canon Asia Group, expressed the company’s commitment to India, stating, "India’s dynamic economy, vibrant culture, and tech-savvy population make it a critical market for Canon. Our existing segments have thrived here, driven by the trust and loyalty of Indian consumers. We are aiming to strengthen the semiconductor and medical business, and we hold an optimistic vision for Canon India to emerge as the leading company in the region by 2035."

Revenue and Strategic Vision

Canon’s consolidated net sales for fiscal 2023 totaled $29.44 billion, with Asia currently being the third-largest contributor to Canon’s global revenue. However, the company is targeting aggressive growth in India to elevate Asia to the top contributor by 2035. This growth will be driven by an increased focus on expanding into tier 2 and tier 3 cities, where there is significant untapped potential.

Mr. Ozawa also the strategic importance of India in achieving this vision, "Recognizing the immense potential that the market holds, we are committed to empowering customers through high-quality and performance-based technology that meets their specific needs. As Canon’s legacy meets India’s boundless potential, we envision a future where Canon India leads the region in innovation and growth. India will contribute 30 per cent revenue in Asia (without Japan) by 2035"

Industrial Equipment and Semiconductor Business

Canon’s industrial equipment segment includes a wide range of semiconductor lithography and flat panel display lithography equipment. The company aims to introduce state-of-the-art lithography solutions in India, emphasizing eco-friendly practices and superior customer service. Mr. Kazunori Iwamoto, Advisory Director and Deputy Chief Executive of Optical Products Operations, highlighted the advanced Nanoimprint lithography technology, which significantly reduces power consumption and has a simpler configuration compared to conventional tools. 

"In the semiconductor business in India, we aim to introduce our advanced skillsets and knowledge, taking advantage of our over 50 years of history in the exposure equipment business. Our latest technology, called Nanoimprint lithography equipment, imprints a pattern on a mask onto a wafer to form a fine pattern. The electric power consumption is only one-tenth of conventional tools," said Mr. Iwamoto.

Medical Industry Expansion

Canon Medical Systems India Pvt. Ltd., a subsidiary of Canon Medical Systems Corporation, focuses on providing advanced medical imaging solutions. The company aims to address the growing prevalence of non-communicable lifestyle diseases in India, such as cardiovascular diseases, cancer, and diabetes, through its innovative technologies.

Mr. Koh Yamada, President of Canon Medical Systems India Pvt. Ltd., stated, "Canon Medical Systems has a comprehensive portfolio of advanced medical imaging systems and healthcare IT solutions. We aim to provide our customers with higher quality services and support medical professionals in better dealing with lifestyle diseases."

Expansion in Smart Cities

Canon plans to capitalize on the opportunities presented by India’s burgeoning smart cities initiative. With around 100 smart cities currently being developed, there is a significant demand for advanced surveillance systems. Canon aims to expand through systems integrators (SIs) and partners to provide comprehensive surveillance solutions tailored to the needs of these smart cities among other solutions and services. India’s Digital drive has opened up large opportunities and the company is optimistic in contributing to this growth.

Imaging Business Growth

The rise of vlogging and social media trends has given a significant impetus to Canon’s imaging business. The company aims to cater to this growing market by offering high-quality cameras and imaging solutions that meet the needs of content creators and social media influencers. This has also driven their aggressive growth strategy to further develop the partner ecosystem and capitalize on tier 2 and tier 3 cities with cost-effective products and imaging solutions. Interestingly, a pie chart shared during the meet highlighted that the Indian wedding market is a significant contributor to the imaging business in India.

What it means?

Canon's initiative to expand its core business and strengthen its industrial and medical segments in India appears to be a well-calculated move. India’s rapidly growing economy and increasing demand for advanced technology make it a pivotal market for Canon. By leveraging its extensive product portfolio and focusing on eco-friendly and advanced technologies, Canon is well-positioned to meet the evolving needs of the Indian market.

However, the success of this initiative will depend on Canon’s ability to navigate the competitive landscape, manage local regulatory challenges, and effectively integrate its global expertise with local market needs. The focus on talent development and alignment with the 'Make-in-India' policy are positive steps that could enhance Canon’s market position and contribute to the growth of India’s industrial and medical sectors. While Canon has established manufacturing units in several regions, including Vietnam, the Philippines, and Malaysia, India has not yet been a focal point from a manufacturing perspective. When asked about the potential for manufacturing in India, Mr. Ozawa mentioned that Canon is evaluating the opportunity and has not ruled out the possibility of producing in India. He also noted that while there is interest in Japanese technology, there are considerations regarding the perception of the "Made in India" tag, which the company is thoughtfully assessing.

Overall, Canon’s strategic expansion in India is a promising endeavor that could significantly contribute to its global growth and reinforce its leadership in key market segments. The company’s aggressive approach to entering tier 2 and tier 3 cities, combined with the potential of the smart cities initiative, positions it well for sustained growth and success in the Indian market.