Panasonic to invest Rs 295 crore in new electrical equipment unit at Sri City
- IBEF
- December 27, 2019
Panasonic Corporation announced its plans to expand its manufacturing footprint in India, with a new factory at Sri City Industrial Park in Andhra Pradesh. Panasonic Life Solutions India Pvt Ltd, the sales arm of Panasonic Life Solutions Company, will be responsible to set the new unit. This will be set up at an investment of Rs 294.6 crore (US$ 42.15 million) and will manufacture wiring devices, electrical wire and switchgear.
This will be Panasonic's fourth unit for manufacturing electrical equipment material in the country. It is scheduled to start production in 2021.
The company said that the Indian economy has been expanding quickly in recent years and estimated that GDP will grow at six per cent a year through 2030, not only big cities but even middle-sized ones are expected to grow in the coming years.
The demand for electrical equipment such as switches, sockets and switchgears are increasing in sync with the increase in construction of office buildings, condominiums and residences. Thus, the decision to set up the new factory by the company was driven mainly by the need to respond to the brisk demand, which would not be met by its existing capacity.
Panasonic has production bases in the country in Haridwar in the north, and in Daman and Kutch in the west, but there is none in the south, which has strong purchasing power and great growth potential.
The new factory at Sri City is expected to give the company better access to the southern market and is planned to start production of wiring devices in 2021. The unit will add fans, switchgear and electrical wire, sequentially. The company also plans to broaden its sales by expanding the product line-up targeted at the middle class, which is expected to grow exponentially in the future.
The new factory is estimated to provide employment to 600 people and will produce 8.6 million units a month.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
