Panasonic elevates India as key export hub and targets market expansion

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Panasonic elevates India as key export hub and targets market expansion

Panasonic elevates India as key export hub and targets market expansion

Articles
Sep 12,23

In a substantial move, the company is injecting Rs 300 crores into expanding its Sri City facility, inaugurated in April 2022.

Panasonic elevates India as key export hub and targets market expansion

Panasonic Life Solutions is strategically positioning India as its primary global production center for exports to West Asia and South Asia, aiming to contribute 10% of total exports by FY30. Currently, the company already exports two per cent of its products from India to countries like Kenya, Nigeria, Tanzania, Saudi Arabia, Oman, as well as South Asian Association for Regional Cooperation (SARC) nations such as Sri Lanka, Myanmar, and Bhutan.

In a substantial move, the company is injecting Rs 300 crores into expanding its Sri City facility, inaugurated in April 2022. Additionally, the company's electric works division plans a global investment of Rs 6,250 crore by FY30 to support expansion. As of FY22, the company boasted a 24% global sales share (excluding Japan), with India contributing 8% of the Rs 62,500 crore in sales.

Projections indicate that global sales, excluding Japan, will reach 40% by FY30. Beyond India, the company has its sights set on Turkey and Vietnam as focal points to serve Europe, North Africa, and the Commonwealth of Independent States (CIS) countries.

Kato Yoshiyuki, the Managing Director of Panasonic Life Solutions India, shared, "Electric devices as our core business, along with distribution and product solutions, will propel us to become the premier electric infrastructure solutions provider, significantly contributing to India's growth."

Panasonic aims to augment its market share in South India, targeting a 30% share in wiring devices, up from the current 25%. The Sri City plant has been instrumental in reducing product lead times to just 6 days, enabling efficient service to cities such as Bengaluru, Hyderabad, Vizag, Kerala, and Chennai. The company has allocated a total investment of Rs 600 crore between 2021 and 2025 for developments at the Sri City facility.

In pursuit of market expansion, the company is open to both organic and inorganic growth strategies. Rajesh Nandwani, Director of Power Business at Panasonic Life Solutions India, stated, "India remains our primary focus, and we will make substantial investments to foster organic and inorganic growth, aiming to increase our market share across our various business segments."

Source: Business Line