Panasonic India makes its big bet on connected devices

Panasonic India expects to close the current fiscal ending March 2020, with gross revenues of Rs 12,000 crore (US$ 1.72 billion) on the back of six per cent growth, regardless of challenging macro-economic conditions.

The Japanese major recently announced one of its “most ambitious projects” by foraying into the connected devices space, with the launch of its IoT and AI-enabled platform Miraie. The platform launch is backed with the launch of connected inverter air-conditioners, smart doorbells and plugs and switches.

Mr Manish Sharma, President & CEO, Panasonic India and South East Asia, said, “In financial year 2020-21, we expect nearly 25 per cent of our total consumer appliances revenues to come from our range of connected devices.”

The company plans to expand the connected devices range to smart refrigerators and washing machines, besides geysers, fans and televisions in the coming months to provide the full range of Connected Living Solutions.

He added, “Overall, Panasonic in India (which includes all its entities in India) is on track to touch the Rs 12,000 crore (US$ 1.72 billion) gross revenue-mark by March 2020, clocking a growth of about 5-6 per cent”.

The company expects to witness a strong double-digit growth in the fourth quarter of 2019-20 and first quarter of 2020-21 in the upcoming summer season with the support of the new range of its connected AC.

Mr Sharma further added, “I remain cautiously optimistic as I believe necessities which include appliances such as ACs, washing machines and refrigerators will continue to grow. However, in the TV space, which has become commoditised and is witnessing a rub-off of increase in entertainment consumption through smartphones and TVs, we will need to be slightly cautious.”

As a part of company’s strategy, it will aggressively focus on increasing the number of launches in TV sizes of 43-inch and above aiming the urban consumers. He added, “Our launches in the segment of sizes below 43 inches, we will be more focused on rural and semi-urban regions”.

Mr Sharma said, “So far inventory of components is good enough in the country for February and March. We are monitoring the situation carefully, if the situation continues in China for a longer term then there will be an impact, but it is something we can deal with.”

The company expects to resume operations in its Chinese factories by next week and it can look at airlifting components to cut down on shipment time.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.