Japan’s Panasonic Life Solutions is targeting 30 percent revenue growth in India this fiscal, driven by stronger B2B demand, air-conditioner business and AI-led products, as it positions India as an export hub for ACs, wiring devices and software solutions.
The company closed FY24 with revenues of around Rs 11,500 crore and expects momentum to continue despite fierce competition. It is also planning a new unit in India and will apply under the reopened production-linked incentive (PLI) scheme for white goods.
“More than half of our India revenues already come from B2B, and this will remain a key focus area,” managing director and CEO Tadashi Chiba told Moneycontrol.
“We see strong traction in commercial air conditioning, industrial devices, factory automation, lithium batteries and cold-chain solutions. AI and IoT-led technologies will also play a much larger role in our product strategy going forward.”
Chiba said India’s business ratio percent is not big but with these opportunities, the company aims to expand. “If you look at the global market, India is one of the fastest-growing countries in terms of opportunities. We have a chance to expand,” he said.
From a global perspective, India has already emerged as Panasonic’s second-biggest market for ACs. “With the kind of growth opportunities, it will soon become number one,” Chiba said.
Half of Panasonic Life Solutions India’s revenues come from its electric works division, led by the Anchor brand in wiring devices and lighting, while the rest is split between B2C and B2B operations. The electric works business continues to expand steadily on the back of infrastructure demand.
“Our electric wiring devices business is already number 2 in India, number 1 being Japan. Seeing the demand in the market, soon we will become the number one. The same goes for the AC business. So, in many categories we are aiming to become number one,” Chiba noted.
AC momentum and exports
Air conditioners remain one of Panasonic’s strongest consumer categories, growing over 45 percent in FY24, with smart ACs contributing 45 percent to the sales, far higher than the industry average.
With the GST rate cut, which come into effect on September 22, the company expects festive season sales to rise by 25–30 percent this year.
Panasonic plans to ramp up AC manufacturing capacity to over a million units, with an ambition to double sales by FY27.
The company is already exporting ACs to Southeast Asia and plans to increase shipments across multiple categories, including wiring devices.
“We see huge opportunities to grow more. We are actively planning to increase our export volumes in these categories,” Chiba said.
Panasonic’s export strategy goes beyond hardware. Its Avionics India Centre in Pune develops in-flight entertainment systems for global markets, while the India Innovation Centre in Bengaluru is building AI and IoT solutions. “This centre not only serves India but also plays a global role, and we will expand it further,” Chiba said.
Strategic exits and sharper focus
The company has exited refrigerators and washing machines as part of a strategic restructuring to focus on the rest of the categories. It continues to sell televisions in India and expects GST cuts and premiumisation to drive double-digit growth, especially in the 43-inch and above segment, including new mini-LED models.
“Such decisions are based on several considerations — ensuring business stability, assessing market share, evaluating the scope for differentiation, and determining whether Panasonic can deliver unique value to customers,” Chiba said.
He acknowledged that India is a hyper-competitive market but said Panasonic is banking on its brand and technology. The company is investing in R&D, manufacturing, service operations and AI-led automation and employs around 11,000 people in India.
He also pointed to deepening Indo-Japan ties. “From Japan’s viewpoint, India is not only one of the most important markets but also a crucial capability and resource centre,” Chiba said, adding that the headquarters in Tokyo is now more bullish on India than ever before.
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