Panasonic eyes 5% of global sales from India by 2015

Panasonic eyes 5% of global sales from India by 2015

New Delhi: Japanese electronics and appliances maker Panasonic on Monday said its Indian operations are expected to contribute about 5% to its global sales by 2015 driven by local manufacturing, exports and enhanced R&D capabilities.

“India currently contributes around 2% to Panasonic’s global sales, but we expect it to become 5% by 2015 with an expected turnover of 25,000 crore by then," Panasonic India president Daizo Ito told PTI.

Globally, Panasonic had posted consolidated net sales of $105 billion in the year ended 31 March, 2011. For the financial year ended March 2011, Panasonic India registered total sales of 3,200 crore and is expected to close the current fiscal with a turnover of 5,500 crore.

He said the company is focusing on increasing local manufacturing in India, besides strengthening research and development capabilities.

In India, Panasonic currently manufactures and markets home appliances, televisions, health and beauty products, dry cell batteries, carbon rods, office automation, telecom products, computers, projectors and security systems through different entities in India.

All the separate companies are currently being merged with Panasonic India Pvt Ltd.

Commenting on plans for exports from India, Ito said: “We are also aiming to increase exports of small appliances from India to Africa and Middle East...all this should get us to 25,000 crore turnover in the next four years".

The company is currently setting up a manufacturing facility at Jhajjar in Haryana which is expected to be operational by November, 2012.

Panasonic has committed to invest $200 million over a five-year period on the facility to roll out a range of products, including air-conditioners and washing machines.

It will also set up an R&D centre at the new facility.

In order to cash in on the festive season, Panasonic India on Monday announced a new marketing and promotional campaign targeting a 100% growth in its revenues during the season compared to last year.

“During September and October, we will invest 100 crore in marketing of our products that will include advertising on mass media, consumer offers and prizes, roadshows and in-store promotion," Panasonic India director marketing and sales Manish Sharma said.

The company will soon roll out a new advertising campaign featuring Bollywood actor Dia Mirza, he added.