Panasonic India is strengthening its manufacturing footprint in the country in line with the government’s “Make in India” initiative.

With the inauguration of its maiden refrigerator factory in the country last week, the Japanese major aims to grab a double-digit market share in the refrigerator segment in India in the next few years. It also wants to make India its manufacturing hub to serve markets such as West Asia and Africa.

Tetsuro Homma, CEO of Appliance Company and Senior Managing Executive Officer, Panasonic Corporation, said: “For the appliance segment, as a strategy, we are increasing our focus on markets that are witnessing rapid growth. India is the fastest growing market for us. The company has a very clear strategic intent to enhance its appliance portfolio for which India has been identified as a developmental hub.”

Locally-produced portfolio

“We believe India has the potential to become our offshore delivery centre for R&D and exports. We believe it can serve as a regional hub for markets such as West Asia and Africa,” he added. He said that the company’s quest is to make aspirational products and expansion of the locally-produced portfolio will enable the company to make products suitable for Indian customers.

Homma added: “After we started manufacturing washing machines and refrigerators in a country like Brazil, within six years, we got a 10 per cent market share. So in India too, we want to secure a double digit market share in the refrigerator segment.”

The company’s refrigerator factory is located at its Technopark manufacturing facility in Jhajjar, Haryana, where it is already making products such as washing machines and air-conditioners.

Manish Sharma, President & CEO, Panasonic India, said “We were missing from one of the biggest categories in the country and therefore”, the refrigerator factory is significant for us. We believe it will also be strategic for us as it will enable us to grow our penetration in tier-II and III towns, and hence, there will be a larger rub-off on the overall brand visibility.”

He said the company aims to grab a 5 per cent market share in the refrigerator segment by 2020 and about 10 per cent market share in the long-term.

Talking about the overall growth of the appliance business in India, Sharma said: “We intend to double our appliance business every three years. So we are targeting a growth of about 25-26 per cent CAGR year-on-year in the appliance segment in the country.”

Set up at with an investment of ₹115 crore, the company’s refrigerator factory has an annual production capacity of about 500,000 units.

It will manufacture frost-free refrigerators range in various capacities starting from 260 litres to 350 litres at this factory.

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