Japanese electronics major sources about 60% of its global optical drives from India
If you are watching a Hollywood blockbuster on a Sony blue-ray disc player or busy beating competition on the Sony PlayStation, chances are the optical drive powering your Sony device is made in India. The Japanese electronics behemoth, which sold 8.4 million PCs and notebooks, 7 million blue-ray disc players and 18 million of PlayStations last year, now sources about 60 per cent of its global optical drive requirements from India.
The trigger that brought such massive dependence on Indian shores was the Fukushima earthquake and tsunami that slammed into Japan in March 2011, quickly followed by the Thailand floods, that together severely impacted Sony's traditional procurement model for optical drives. Out to diversify their supply base, Sony, which has been producing optical drives at its own factory in Oski, Japan since April 2006, through its subsidiary Sony Optiarc, shipped the business to India.
“About 60 per cent of our optical drives are sourced from India now,” said Kenichiro Hibi, Managing Director, Sony India, explaining that the combined advantage of low cost and high quality, had allowed the electronics major to gradually enhanced sourcing of optical drives from India during the past few months. “It took almost six months to streamline the production and the supply chain," he added. Earlier, too, Sony would source a small volume of optical drives, used in notebooks, audio, video players and play stations, from Indian vendors, but not at this scale.
The volume of Sony’s global requirement of optical drives is sizeable. In FY2011, Sony had sold 8.4 million PCs, including notebooks, 7 million blue-ray disc players and 18 million of PlayStations (2 and 3) globally, according to its annual report.All these products come with optical drives fitted in.
Interestingly, Sony had, in August, announced that it would eject manufacturing optical drives and close down Sony Optiarc that has about 15 per cent share of the optical drives market globally. The operations would be shut down by March 2013. That may mean that the dependence on India could increase, although Sony India did not comment on this directly. "We would continue sourcing optical drives from India,” said Hibi.
This brings a sizeable opportunity for Indian optical drive manufacturers, though globally the optical drive market is not growing. According to a report by market intelligence firm iHS iSuppli, total shipment of optical disk drives is expected to be at 299.8 million units in 2012 globally, marginal increase from 297.7 units in 2011.
When asked, Sony declined to reveal the names of the companies that make optical drives for Sony in India. Earlier, Taiwan based Liteon used to make optical drives for Sony before it had started producing on its own through Optiarc. Liteon also has a unit in India.
If you are watching a Hollywood blockbuster on a Sony blue-ray disc player or busy beating competition on the Sony PlayStation, chances are the optical drive powering your Sony device is made in India. The Japanese electronics behemoth, which sold 8.4 million PCs and notebooks, 7 million blue-ray disc players and 18 million of PlayStations last year, now sources about 60 per cent of its global optical drive requirements from India.
The trigger that brought such massive dependence on Indian shores was the Fukushima earthquake and tsunami that slammed into Japan in March 2011, quickly followed by the Thailand floods, that together severely impacted Sony's traditional procurement model for optical drives. Out to diversify their supply base, Sony, which has been producing optical drives at its own factory in Oski, Japan since April 2006, through its subsidiary Sony Optiarc, shipped the business to India.
“About 60 per cent of our optical drives are sourced from India now,” said Kenichiro Hibi, Managing Director, Sony India, explaining that the combined advantage of low cost and high quality, had allowed the electronics major to gradually enhanced sourcing of optical drives from India during the past few months. “It took almost six months to streamline the production and the supply chain," he added. Earlier, too, Sony would source a small volume of optical drives, used in notebooks, audio, video players and play stations, from Indian vendors, but not at this scale.
The volume of Sony’s global requirement of optical drives is sizeable. In FY2011, Sony had sold 8.4 million PCs, including notebooks, 7 million blue-ray disc players and 18 million of PlayStations (2 and 3) globally, according to its annual report.All these products come with optical drives fitted in.
Interestingly, Sony had, in August, announced that it would eject manufacturing optical drives and close down Sony Optiarc that has about 15 per cent share of the optical drives market globally. The operations would be shut down by March 2013. That may mean that the dependence on India could increase, although Sony India did not comment on this directly. "We would continue sourcing optical drives from India,” said Hibi.
This brings a sizeable opportunity for Indian optical drive manufacturers, though globally the optical drive market is not growing. According to a report by market intelligence firm iHS iSuppli, total shipment of optical disk drives is expected to be at 299.8 million units in 2012 globally, marginal increase from 297.7 units in 2011.
When asked, Sony declined to reveal the names of the companies that make optical drives for Sony in India. Earlier, Taiwan based Liteon used to make optical drives for Sony before it had started producing on its own through Optiarc. Liteon also has a unit in India.
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