Sony India: Leading With Excellence

Sony India jumped five spots in this year's list of Most Respected Companies thanks to the high scores it obtained in the perception survey across key parameters including work culture, trustworthy leadership and financial returns. Sony India, a wholly-owned subsidiary of Sony Group Corp, has been consistently featuring in the BW Businessworld Most Respected Companies list.

As per data sourced from publicly available reports, Sony India reported a strong financial growth in FY23. It witnessed a notable increase in profits and revenue for the fiscal year 2022-23. According to reports, Sony India's profit soared 31.8 per cent to Rs 136.7 crore, while its revenue from operations surged 23.1 per cent to Rs 6,353.74 crore in FY23. This impressive performance marks a substantial improvement compared to the preceding fiscal year, where the company recorded a profit of Rs 103.71 crore and a revenue of Rs 5,161.23 crore.

Sunil Nayyar, Managing Director, Sony India, attributed the success to the company's focus on premium offerings. "This is led by premiumisation in our offerings," Nayyar told a news agency, expressing optimism for the fiscal year 2024 with expectations of a 15-20 per cent value growth. Nayyar also highlighted the significance of premium TV sets, particularly those sized 55 inches and above, as key drivers for growth in the coming years.

It must be underlined here that despite experiencing a decline in revenue following Sony Corporation's exit from the mobile phone and laptop business, Sony India's revenue stabilised from FY22 onwards, marking a turnaround in its financial trajectory.
"We were trying to come back. Now the India premium market has evolved finally," Nayyar stated, emphasising the company's commitment to growth, innovation, and the introduction of new products in the market.

In addition to the notable increase in profit and revenue, Sony India's total income surged 23.17 per cent to Rs 6,404.54 crore for FY23. Meanwhile, total expenses also rose 23.07 per cent to Rs 6,225.87 crore, it was reported.

Green Shoots
Sony India attributed its growth to various business segments. The TV business witnessed a post-Covid expansion, particularly in large-screen offerings, maintaining dominance in the market. The audio business demonstrated mixed performance but continued its growth momentum, alongside expansion in over-the-top (OTT) services.

The headphone business maintained its competitive position, particularly in the active noise cancelling headband segment. The digital imaging business, including camera sales, experienced strong momentum, driven by dominance in the wedding market. Additionally, the gaming business exhibited steady growth despite supply shortages.
With these robust financial results and optimistic projections for the future, Sony India appears poised to maintain its growth trajectory and further strengthen its position in the consumer electronics market.

Sound Fundamentals
According to ratings agency CRISIL, Sony India has a number of positives going for it. Sony India receives technical and product support from its parent, Sony Global Corp. In accordance with the parent's agreement with Competition Team Technology India (Foxconn), Sony India sources more than 95 per cent of its TV requirement locally in India. All other products in the portfolio are directly imported from the parent and associate companies. Alignment of the product portfolio with the parent enables Sony India to launch new products in India alongside global markets. It also has access to Sony Group Corp's strong research and development capability.