Panasonic prioritises India for substantial investments and manufacturing growth

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Panasonic prioritises India for substantial investments and manufacturing growth

Panasonic prioritises India for substantial investments and manufacturing growth

Industry News
Feb 13,24

Ryo Matsumoto, General Manager of the Living Energy Business Division at Electric Works Company, Panasonic Corporation, outlined the company's plan to boost production capabilities by utilising excess facilities at its Sri City factory in Andhra Pradesh.

Panasonic prioritises India for substantial investments and manufacturing growth

Panasonic Electric Works Company of Japan reaffirms India's significance as a key market and manufacturing hub in its global expansion strategy. Ryo Matsumoto, General Manager of the Living Energy Business Division at Electric Works Company, Panasonic Corporation, outlined the company's plan to boost production capabilities by utilising excess facilities at its Sri City factory in Andhra Pradesh.

Matsumoto shared details of the strategic investment roadmap, allocating 100 billion yen (approximately Rs 7,000 crore) for global electrical and equipment business growth by fiscal 2030, excluding Japan. Out of this, 30 billion yen (about Rs 2,100 crore) is earmarked for investment by fiscal 2024.

While specific investment details for individual countries are not disclosed, Matsumoto emphasised India's continued prominence in the company's global expansion strategy. Over the next 5-10 years, investments in India will focus on capacity expansion, incorporating new technologies, and strengthening the company's market position.

Kiyoshi Otaki, Executive VP of Panasonic Corporation and President of Electric Works Company, highlighted India's special place in their priorities, citing its remarkable economic growth and status as the world's most populous country. Otaki expressed aspirations to expand operations, actively pursuing exports and investments from India to Africa in the future.

Panasonic Electric Works, a business domain of Panasonic Corporation, reported net sales of 1 trillion yen (estimated Rs 62,500 crore) in FY-2022 in its electrical construction materials business.

In 2007, Panasonic acquired Anchor Electricals in India, leading to significant investments in manufacturing facilities. Toshinobu Kawasaki, Joint MD of PEWIN (Panasonic Electric Works India), affirmed the commitment to further invest in existing facilities, enhance operational efficiency, and explore mergers and acquisitions to expand into new business segments.

For PEWIN, the Sri City facility is a crucial production centre for power products, aiming to increase production capacity from 120 million units to 300 million units by FY30. The wiring device business unit plans to bolster manufacturing capabilities from 620 million pieces per year in FY23 to 1,000 million pieces per year in FY30.

While considering land availability for expansion at older units, PEWIN is intensifying efforts to enhance productivity by advancing automation and improving production efficiency. The goal is to establish India as a pivotal export hub, with an aim to increase export business from 2% to 10% of total operations by 2030.

Kawasaki emphasised the alignment of their approach with the 'Make in India' initiative, aiming to evolve beyond assembly and engage in local manufacturing of core components for various products and businesses. The strategy involves expanding and diversifying the product range to meet market demands both domestically and internationally, with a focus on complying with specific regulations of target countries.

Source: The Hindu