In FY23, Panasonic India cuts loss to Rs 53 crore

6 Jul 2023 , 11:43 AM

The Japanese company Panasonic is restructuring its operations in India, where it exited commoditized industries like entry-level televisions and window and fixed-speed air conditioners and tightened operations. As a result, the net loss in the consumer electronics business was reduced from Rs 489 crore to Rs 53 crore in fiscal 2022–23.

According to Panasonic Life Solutions chairman Manish Sharma, who talked to ET, the company’s restructuring of its Indian operations, which included merging its consumer electronics division with its existing electricals division, had also helped it cut losses and increase the scale of operations.

Effective August 2022, the electricals division of Panasonic Life Solutions, which the company purchased from Anchor Electricals, merged with the consumer electronics division.

In 2022–2023, Panasonic Life Solutions’ revenue increased by 14% over the prior year to Rs 9,600 crore. The firm was previously lucrative prior to the merger, but last fiscal year’s profit increased by 37% to Rs 900 crore. Now a part of this firm, it deals with consumer electronics.

The company has introduced new goods and services geared toward two-wheeled electric mobility, cold chain and display signage for retail, and manufacturing solutions for electronic parts, electromechanical devices, energy devices, and factory automation tools.

Based on our company plan, we have a healthy and balanced mix of revenue sources. According to Sharma, the electric works division (or electricals) contributes over 50%, the consumer (electronics) and solutions business makes up 35%, and the remaining 20% comes from our automotive, energy, and factory solutions divisions.

In order to increase the manufacturing pipeline for heat exchangers, sheet metal components, and controller assemblies, Panasonic has taken part in the government’s production-linked incentive (PLI) scheme for air conditioners.

More investments are planned through 2025, according to Sharma. ‘In the last six years, we have invested more than Rs 700 crore to expand and set up manufacturing operations and another Rs 420 crore in R&D and innovation.

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