Panasonic India optimistic about robust demand during festive season

After a strong September quarter, Panasonic India is hopeful of a robust demand during the festive season as COVID infections remain under control. The company is planning to invest Rs 300 crore to manufacture compressors and heat exchangers under India’s production linked investment (PLI) scheme.

Manish Sharma, Panasonic India Chairman and CEO, said the company has recorded a growthof 18% in June-September quarter 2021 versus last year. “We expect to maintain this growth momentum throughout the season. We are hopeful that this festive season will bring in the much awaited festive cheer for the industry,” he said.

Sharma noted a shift in consumer behavior from price consciousness towards quality and value proposition. “We have expanded our home appliance segment with the launch of 43 new models of refrigerator and 24 new models of washing machine to meet the rising demand, ahead of the festive season.”

In regards to the supply chain disruptions, Panasonic India executive shared that in terms of inventory, the company has sufficient stock to cater to consumers throughout the festive season. “However, rising container prices due to higher cost of inward freight in the last few months have resulted in price increase of ACs and refrigerators by 4-5% in July 2021. Despite lots of noise and reports of growth of e-commerce in the past few months, offline continue to generate lion share of its sales and the company remains geared with robust omni channel strategy. Although the online channel has grown, the offline channel continues to play an important role in sales.”

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To provide impetus to manufacturing in India, Sharma highlighted that the PLI scheme is a progressive step that will help the industry achieve the government’s vision of Make in India. Panasonic has made an investment proposal of Rs 300 crore to manufacture compressors and heat exchangers. As such, Panasonic Life Solutions India, a wholly owned subsidiary of Panasonic Group has invested close to Rs 300 crore in setting up the electrical equipment material and wiring device manufacturing facility at Sri City in Andhra Pradesh.