Kiyoshi Otaki, Executive VP, Panasonic Corporation and President, Electric Works Company
| Photo Credit: Special association
India as a market and manufacturing website stays a prime precedence within the world enlargement technique for Panasonic Electric Works Company of Japan.
The firm plans to improve manufacturing capabilities by leveraging surplus services at Sri City manufacturing unit in Andhra Pradesh, stated Ryo Matsumoto, General Manager, Living Energy Business Division, Electric Works Company, Panasonic Corporation.
“Our strategic investment roadmap includes 100 billion yen (about ₹7,000 crore) allocation for global electrical and equipment business growth by fiscal 2030, excluding Japan. Of this 30 billion yen (about ₹2,100 crore) is earmarked for investment by fiscal 2024,” he replied on electronic mail following an organization carried out media tour of some services in Japan just lately.
While he stated particular investments for nations aren’t disclosed, he stated India stays a prime precedence within the firm’s world enlargement technique. The funding within the nation over the subsequent 5-10 years will give attention to capability enlargement, integrating new applied sciences and reinforcing the corporate’s market place.
Remarkable progress
Executive VP, Panasonic Corporation and President of Electric Works Company Kiyoshi Otaki talking at a media briefing stated, “among our priorities, India holds a special place as the world’s most populous country with remarkable economic growth. We aspire to expand operations… in future, we will actively pursue exports and investments from India to Africa.”
Panasonic Electric Works is among the 4 enterprise domains of Panasonic Corporation and its electrical development supplies enterprise reported web gross sales was 1 trillion yen (est. ₹62,500 crore) in FY-2022.
Beyond acquisition
In India, Panasonic had acquired Anchor Electricals in 2007. Following this, important investments had been directed in direction of manufacturing services, stated Toshinobu Kawasaki, Joint MD of PEWIN, Panasonic Life Solutions India.
“We have upgraded and expanded the plants in Daman, Haridwar and Kutch and established a new manufacturing hub in Sri City to strengthen production capabilities across India… (we are) committed to further investments in the existing facilities to enhance operational efficiency and output. Our strategy includes actively exploring mergers and acquisitions to expand into new business segments and increase capacities,” he replied to a question over mail. Panasonic Electric Works India is a enterprise unit of Panasonic Life Solution India and in FY-22 posted web gross sales, within the nation, of 83 billion yen (est. ₹5,180 crore).
For PEWIN, which goals to triple gross sales quantity by FY30 by a mix of methods from enhancing companies in electrical gadgets to making India a hub for world enlargement, the Sri City facility is a pivotal manufacturing centre for energy merchandise. “We have a production capacity of 120 million units at Sri City… (we) want to scale this to 300 million units by FY30. Our immediate plan is to maximize the plant’s potential as there is space available to expand. While there are no immediate plans for new plants, we are exploring the possibility of broadening our product range, including development of commercial products like wires and electric circuits,” stated Kentaro Kobayashi, VP Manufacturing, PEWIN.
Overall, the wiring machine enterprise unit intends to bolster its manufacturing capabilities from 620 million items per yr in FY23 to 1,000 million items per yr in FY30.
Emerging hub
On land availability for enlargement at older items – aside from Sri City – he stated “for the three plants [in Haridwar, Daman and Kutch] where expansion space is limited we are intensifying efforts to enhance productivity per unit area. This will involve advancing automation and improving production efficiency. While the Daman plant currently plays a significant role in export production, we are considering shifting some of these export-focused activities to the Sri City plant, aligning with our goal to establish India as a pivotal export hub.”
“Currently, exports constitute 2% of our total business… by 2030, we aim to increase our export business to account for 10% of our total operations,” stated Mr. Kawasaki. The focus is on increasing and diversifying the product vary to meet the evolving market calls for, each domestically and internationally. “Our strategy involves not only enhancing our existing product categories but also venturing into new ones. Leveraging Panasonic’s global technologies, a variety of innovative products have been introduced such as solar solutions, EV chargers, smart meters, fire alarm systems, building management systems and water heaters. Additionally, we are tailoring our export product range to comply with the specific regulations of each target country’s market,” he stated.
The method additionally aligns with authorities of India’s ‘Make in India’ emphasis. “To elevate India as a global manufacturing hub, it’s crucial to evolve beyond mere assembly. We believe the next step involves local manufacturing of core components for various products and businesses such as solar cells, LED Lights, and electronic components,” Mr. Kawasaki stated.
(The correspondent was in Japan on the invitation of the corporate)
