Supporting the imaging, printing, industrial and medical sectors

Canon, the global leader in imaging solutions, has announced ambitious plans for significant business expansion in India, highlighting the key role the country plays in its global growth strategy. This strategic initiative aims to grow Canon’s semiconductor and flat panel display businesses, strengthen its presence in the healthcare industry and strengthen its key segments such as imaging, printing and surveillance. The announcements were made at a strategy meeting in Mumbai attended by key world leaders.

Expansion of core business

Canon plans to expand its presence in the Indian imaging, printing and surveillance sectors. Using a wide range of products and innovative technology, Canon strives to meet the growing demands of the Indian market. With a focus on delivering high-quality, performance-based technologies, Canon India aims to become the leading company in the region by 2035, positioning Canon Asia as the top sales region in the world.

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 seen growth here due to the trust and loyalty of Indian consumers. We aim to strengthen the semiconductor and medical device industries and have an optimistic vision of Canon India becoming a leading company in the region by 2035.”

Revenue and strategic vision

Canon’s consolidated net sales for fiscal 2023 were $29.44 billion, with Asia now being Canon’s third-largest source of global revenue. However, the company is targeting aggressive expansion in India to position Asia as a major supplier by 2035. This growth will be driven by an increased focus on expansion into tier two and three cities where there is significant untapped potential.

Mr. Ozawa also highlighted India’s strategic importance in realizing this vision: “Recognizing the enormous potential in the market, we are committed to empowering customers with high-quality technology and performance that meets their specific needs. As Canon’s legacy meets India’s with limitless potential, we envision a future where Canon India leads the region in innovation and growth. India will account for 30% of Asia’s revenues (excluding Japan) by 2035.”

Industrial equipment and semiconductor operations

Canon’s industrial equipment segment includes a wide range of semiconductor lithography and flat panel display equipment. The company aims to bring cutting-edge lithography solutions to India with an emphasis on eco-friendly practices and excellent customer service. Mr. Kazunori Iwamoto, Advisory Director and Deputy General Manager for Optical Products Operations, highlighted the advanced Nanoimprint lithography technology, which significantly reduces energy consumption and has a simpler configuration compared to conventional tools.

“In the semiconductor industry in India, we aim to bring our advanced skills and knowledge, leveraging our over 50 years of history in the exposure equipment industry. Our latest technology, called Nanoimprint lithography equipment, imprints the pattern on the mask onto the wafer, creating a delicate pattern. Electricity consumption is only one-tenth of that of conventional tools,” Mr. Iwamoto said.

Expansion of the medical industry

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 rising incidence of non-communicable lifestyle diseases in India, such as cardiovascular diseases, cancer and diabetes, through its innovative technologies.

Mr. Koh Yamada, President, Canon Medical Systems India Pvt. Ltd., said: “Canon Medical Systems has a comprehensive portfolio of advanced medical imaging systems and healthcare IT solutions. Our goal is to provide our clients with higher quality services and support healthcare professionals in better dealing with lifestyle diseases.”

Expansion in smart cities

Canon plans to capitalize on opportunities presented by India’s growing smart cities initiative. With around 100 smart cities currently under construction, there is a significant demand for advanced surveillance systems. Canon’s goal is to expand through system integrators (SI) and partners to provide end-to-end surveillance solutions tailored to the needs of smart cities, as well as other solutions and services. The Indian digital trend has opened up enormous opportunities and the company is optimistic about contributing to this growth.

Business development imaging

The rise of vlogs and social media trends has given Canon’s imaging business a significant boost. The company aims to meet the needs of 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 led to their aggressive growth strategy to further expand their partner ecosystem and leverage tier 2 and tier 3 cities with cost-effective imaging products and solutions. Interestingly, the pie chart shared during the meeting showed that the Indian wedding market is contributing significantly to the imaging industry in India.

What does it mean?

Canon’s initiative to expand its core business and strengthen its industrial and medical segments in India appears to be a well-thought-out move. India’s rapidly growing economy and growing demand for advanced technologies make it a key market for Canon. By leveraging its broad 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 environment, navigate local regulatory challenges and successfully integrate its global expertise with local market needs. Focusing on talent development and aligning with the Make-in-India policy are positive steps that can strengthen Canon’s market position and contribute to the development of the Indian industrial and medical sectors. While Canon has set up manufacturing units in several regions, including Vietnam, the Philippines and Malaysia, India has not yet been a focal point from a manufacturing standpoint. When asked about the potential for production in India, Mr. Ozawa mentioned that Canon is assessing this possibility and has not ruled out the possibility of production 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 carefully assessing.

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