SONY INDIA PRIVATE LIMITED Background Founded in 1946 and headquartered in Japan, Sony Corporation had revenues of over US$ 66 billion in 2003. Sony operates in six segments: Electronics, Games, Music, Pictures and Entertainment, Financial services and Internet based services. Sony has nearly 1,000 consolidated subsidiaries spread across 36 countries in which it employs over 160,000 people. Set up in 1995, Sony India Private Limited is a 100 per cent subsidiary of Sony Corporation, Japan. Sony India operates in the following segments: • Electronics: White consumer goods like Colour Televisions (CTV), audio systems, digital cameras among many others. • Movies: Does movie business through Columbia Tristar Films India Ltd. • Television Entertainment/Media: Through Sony Entertainment Television it sells TV software and entertainment programmes. • Music: Sells audiocassettes through Sony Music India. Sony India broke even in 1997-98, two years ahead of initial plans. It employed over 900 people as of 2002 and had sales of over US$ 170 million in 2003-2004. Sony India has a strong network of distributors and sales force, which consists of 2000 dealers and distributors, 40 Sony World outlets, 60 Sony Exclusives and 12 direct branch locations. Sony India has a strong service presence across the country with five company-owned service centres and 119 authorised service centres. Sony’s market share in the audio segment is 45 per cent (by value) and 7.8 per cent in CTVs (by value). Sony India’s software division, Software Architecture Division (SARD) has been awarded the Software Engineering Institute’s Capability Maturity Model (SEI-CMM) Level 5 rating. FORTUNE 500 COMPANIES IN INDIA PAGE 162 India challenges metros and mini-metros. Sony India has 40 Sony Sony faced a few challenges on entering India: Worlds and 60 Sony exclusive showrooms. Sony World is involved in test marketing Sony products • Price and value sensitivity of Indian consumers and is also involved in consumer research. • Requirement of a robust and vast distribution network Leveraging the India Advantage • Tough competition from local players and MNCs Sony has overcome these to emerge as a major player Software in the Indian consumer electronics market. In 1998, Sony set up a software architecture division, SARD, at Bangalore, which exports 100 per cent of Factors for success the software developed to its head office at Tokyo. SARD works in areas like home networks, digital media Brand promotion platforms and internet-enabled consumer electronic • Introduction of diverse TV commercials and devices. Sony India exported software worth over conducting road promotional shows in metros and US$ 31 million in 2003. mini metros. • Allocating about 4-5 per cent of its turnover for R&D in product development advertising and marketing. SARD has contributed to many of Sony’s products, • Launching products and offers during festival including AIBO, CLIE, VAIO PC and digital TV in seasons. terms of research and development. • Acquiring exclusive cable and satellite TV rights SARD woks in domains ranging from entertainment for live telecasts of ICC cricket tournaments to be robot and digital TV development to client server held from 2002 to 2007. based AV products, digital signal processors and • Tying up with car manufacturers like Hyundai for network security. the supply of car audios. Future plans Tapping rural and semi-urban markets • To launch new products like Playstations (games) Sony is tapping the rural and semi-urban markets to and Vaio and technologies like WEGA and Engine increase its customer base by launching customised Technology in India. products at affordable prices. Sony launched “X- treme” VCD hi-fis with MP3 playback facility for the • To increase the number of its dealers to 1,877 semi-urban consumer and middle-income group. from the current 1,477. • To increase the number of retail outlets to about Venturing into retailing 140 in the very near future. Sony has opened retail outlets called ‘Sony World’ • To increase the import of finished goods from its and ‘Sony Exclusive Stores’ at various cities apart from manufacturing bases in Thailand. SUCCESS STORIES PAGE 163.