Panasonic bets big on mobile phones

Consumer durables major Panasonic is betting big on mobile phones in India.

Panasonic India — the Indian subsidiary of the Japanese major — expects contribution from the mobile phones’ segment to its revenue to double over the next three years (FY-20).

Mobile phones — a three-year-old vertical — currently contributes 25 per cent of its turnover.

“Today, our market share in the segment is about 2.5 per cent, but it should change within the next three to three-and-a-half years. With mobiles expecting to be a major contributor to our India revenues, Panasonic aims to be the No. 3 player in the smartphone market,” Manish Sharma, President & CEO, Panasonic India, said.

Panasonic is targeting a revenue of ₹2,500 crore from the mobile business by the fiscal-end.

Six models priced between ₹7,000 and ₹16,000 are expected to be launched between September and November.

In terms of contribution to Panasonic India’s total turnover, 25 per cent is from business-to-business (B2B) segments while consumer durables and other non-B2B segments contribute the remaining 75 per cent.

Sharma also pointed out that by FY-20, the Indian subsidiary is expected to more than double its contribution to the company’s global turnover.

From at around 2 per cent at present, the number is expected to move up to 4.5 per cent during this period.

Apart from Japan — its home market — Panasonic has a major presence across the US, Europe, China and India.

“India is amongst the fastest growing subsidiaries,” he said, adding that focus on the B2C segment will be on televisions, air conditioners and mobile phones. Products are being designed keeping in mind “Indian requirements”.

The company is targeting a 20 per cent growth in revenues here this fiscal.

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