Harman International Industries is targeting annual sales of up to $250 million in Russia by 2016, waging on the renewed growth in the automobile market, Dinesh Paliwal, the company’s chief executive officer, disclosed in an interview with Reuters on Monday.
The company is one of the largest audio system manufacturers in the world and is known for brands like Infinity, Mark Levinson, Harman Kardon and JBL. Last year, the company obtained total sales of $3.4 billion worldwide.
According to Paliwal, the vehicle industry in Russia is “growing very fast” and selling premium audio system in the vehicle is also a “very big automarket business.” He further disclosed that the vehicle audio system generally comprises 70 percent of the company’s revenues while the rest come from consumer and professional audio systems.
Paliwal is expecting that this proportion will be the same in the Russian market. He also disclosed that the company’s partners want Harman to expand in Russia, opening engineering support centers and offices, as well as some factories wherein components are produced.
In addition, he said that Russia is “a much bigger market” for the company compared to Brazil and India. On the other hand, the company has also been pushing into emerging markets like China, Brazil and India. It is also targeting revenue of $1.5 billion by 2015 from these nations. Paliwan said that he expected double-digit growth in all BRIC markets.
He also disclosed that the company is already growing 40 to 50 percent in China, which is four times GDP (growth). He added that the company aims to grow at least four to five times GDP or 15-20 percent every year, in Russia. On another note, Harman provides audio products for vehicles made by Ferrari, Fiat S.p.A., Toyota Motor Corp., Daimler AG, Volkswagen AG, BMW AG and Audi.