Panasonic targets fridge sales boost with ‘home-made’ units

Eyes 3% market share with its ‘Made in India’ refrigerators

"Lifestyle-UN-climate-warming-Japan,FEATURE" by Karyn Poupee and Patrice Novotny
 (FILES) Japanese electronics giant Panasonic displays eco friendly electric appliances, including a washing machine (L) and refrigerator in Tokyo on September 1, 2009. On Tokyo Bay, at the edge of the largest urban sprawl on Earth, sits what may be an environmentalist's dream home. Solar panels on the roof and a fuel-cell in the backyard power the family house, a lithium-ion battery stores the surplus electricity, hot water pipes double as floor heating, and good insulation saves energy all round. AFP PHOTO / JIJI PRESS / FILES

Panasonic India aims to garner a 3% share in the Indian frost-free refrigerator market by churning out ‘home-made’ units from its Jhajjar unit in Haryana under the government’s ‘Make in India’ initiative.

“While we were earlier importing refrigerators from our units in Thailand and Vietnam, we will now sell products made here,” said Gaurav Minocha, Business Head — Home Appliances (Sales and Marketing), Panasonic India Pvt. Ltd.

‘Miniscule share’

The company, which is selling imported units till now, has a ‘miniscule share’ in the Indian market estimated at 25 lakh frost-free units.

Mr. Minocha said that the company was targeting sales of 70,000 units by March 2019. An investment of ₹115 crore has been made in the Haryana unit. Only large units would be imported now.

Panasonic India is aiming a 40% growth in its home appliances segment this fiscal with ₹800-crore sales. Of this, about 40% would be from refrigerators. “By fiscal 2021, we are looking to double the home appliances revenue to ₹1,600 crore. Frost-free refrigerators and fully automatic top loader washing machines will be the key drivers for this growth,” Mr. Minocha said.

The company also aims to double its market share in washing machines from 5.5 % in 2017-18 to 10% by fiscal 2021. Panasonic India aims to increase its distribution network through dealerships and exclusive stores from 7,500 (dealers) now to 12,500 by 2021 and 450 exclusive stores from 300 now. The company is also expanding to Tier II and II cities, he said.