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Renesas lays focus on India for its market expansion
By Shruti Ajitsaria, SiliconIndia
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Friday, 18 February 2011, 16:37 IST
Bangalore: Tokyo, Japan based Renasas Electronics, provider of Microcontrollers and semiconductor solutions, incorporates India in its global strategy for its market expansion. It announces the official opening of Renesas Electronics Singapore, India Branch Office in Bangalore in the presence of attendees from Japanese embassy in India, customers and industrial partners.
Renesas is aiming to increase its overseas sales ratio to 60 percent by FY2012. Renesas Mobile Corporation, subsidiary of Renesas Electronics, through the acquisition of Nokia's wireless modem business offering semiconductor solutions for mobile devices, started its operation in December 2010, with R&D facilities in various regions including India. The company is engaging Indian market is a part of their overseas business expansion strategy. Choosing Indian market might work in favour of the company as India is a growing economy and it's growing in almost all sectors- Industrial, Consumer and Automotive. Renesas expects to grow its India market by 20 percent annually.
The company is planning to develop 100 new products specifically for Indian market. "We believe in high-potential growth of the Indian market and are eager to expand our global sales to synchronize their growth. Providing the best semiconductor solutions based on our competitive microcontrollers through the new branch, Renesas aims to double its sales in the Indian market to $100 million by FY2012 from $50 million," says Yasushi Akao, President of Renesas Electronics Corporation.
India branch in Bangalore has a manpower of 16 employess at present which the company is hoping to increase to 45 by FY2015. With authorized distributors, Renesas Electronics in India will have over 80 engineers providing field and technical support by sme fiscal year. Office will be reporting to Sunil Dhar, concurrently appointed as General Manager in Renesas Electronics Singapore.
Renesas has regional offices in Delhi and Mumbai as well and planning to have one in Pune in future. Company's reinforcement of overseas business strategy includes global offering of Symtem-on-Chip (SoC) combining Microcontrollers (MCU) with their analog and power devices.
The Company is planning to spend initial investment of $10 million to grow India's market. Renesas aims at developing the society with green technology by providing solution that innovate set/system energy efficiency. The growth strategy in India will include strengthening the MCU business and expand sales by kit solution using Analog and Power devices (A&P).
Japan based company target market share by following products- MCU currently has 10 percent market share and expected to grow by 20 percent by 2015. A&p is at 3 percent and can grow by 10 percent, Industrial products are at 11 percent and can go up by 27 percent, automotive market share is at 8 percent and can reach 22 percent and consumer product is at 6 percent and is expected to go up by 12 percent by 2015 respectively.
Renesas has shown losses in their last quarter and expecting to make net profits by FY2012. According to Sunil Dhar, major investments were made as restructuring fees this year, which might not be the case next year, so the company will definitely achieve net profits by FY2012. The company will have India specific website where they can search for the products online without visiting in person.
The company is definitely eyeing India's booming automobile and IT industry including demand for consumer and industrial goods to help them recover from the previous losses.
