Sony India separates sales, software units

Written by Rasul Bailay | New Delhi | Updated: Feb 18 2012, 08:35am hrs
Japanese electronics giant Sony Corp is restructuring its India business by creating two separate units, one for undertaking sales and marketing operations and the other for focusing on software and product development.

Sony India is transferring its software and research and development (R&D) operations to the newly created Sony India Software Centre based in Bangalore. The existing firm, Sony India, will continue with the sales and marketing operations, a company spokesperson said.

Sony Indias board of directors have approved the hiving off of the firm into two separate entities and consulting firm Ernst & Young is advising Sony on the restructuring plans. Sony India had started a software design operation in 1997 as part of its local unit, and now the company has decided to spin it off as a separate company amid growing business prospects in both the areas.

In December, the company incorporated Sony India Software Centre as a separate entity and then followed it up by filing a case in the Delhi High Court in January on the companys proposed split.

With the increasing business volume for both software design and sales and marketing operations, two separate offices in Bangalore and Delhi, and, moreover, with two very different business nature, we decided to separate the functions into two independent entities, aiming more effective operations, Sony Indias managing director Masaru Tamagawa said in a email reply.

Apart from carrying out R&D activities, the software centre in Bangalore has been developing the internal information systems for the global parent company Sony Group. Sony Software Centres role as a captive development unit for the group will not change after the de-merger, the spokesperson added.

Tamagawa said Sony has already undertaken a similar exercise in China by separating sales and marketing from software development.

Without giving sales figures, Sony said India is a key market for the Japanese company and said the country is expected to figure in the top five regions by sales for the company in the near future.