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Panasonic hopeful of robust festive sales, to invest Rs 300 crore under PLI scheme

The company was also planning to invest Rs 300 crore to manufacture compressors and heat exchangers under the country’s production linked investment (PLI) scheme.

October 24, 2021 / 12:03 PM IST
Source: Reuters

Source: Reuters

Panasonic India after a strong September quarter is hopeful of robust demand during the festive season with Covid infection remaining under control, a top company official said.

The company was also planning to invest Rs 300 crore to manufacture compressors and heat exchangers under the country’s production linked investment (PLI) scheme.

"We have seen a growth of 18 per cent in June-September quarter 2021 versus last year and 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,” Panasonic India Chairman and CEO, Manish Sharma told PTI.

"A shift in consumer behaviour 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,” he said.

Asked about supply chain disruptions, Sharma said in terms of inventory, the company has sufficient stock to cater to consumers throughout the festive season.

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However, rising container prices due to the higher cost of inward freight in the last few months have resulted in a price increase of ACs and refrigerators by 4-5 per cent 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, he said.

"Although the online channel has grown, the offline channel continues to play an important role in sales," the company said.

Meanwhile, Sharma said, "To provide impetus to manufacturing in India, 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.

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. The unit will be operational soon.
PTI
first published: Oct 24, 2021 12:06 pm

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