Panasonic June06

PANASONIC

Company Background Panasonic is a brand of Matsushita Electric Industrial Company Ltd. (MEI). MEI is a manufacturer of electronic products. It manufactures over 15,000 products and its portfolio of brands includes Panasonic, National, Technics, and Quasar. The group (MEI) was incorporated in the year 1918 and today, it comprises of over 600 companies. It employs about 334,752 people around the globe. MEI registered net sales of US$ 81.4 billion in 2004-05.

National Panasonic India National Panasonic India Ltd markets a variety of consumer products such as washing machine, home theatre, camera and TV under the ‘Panasonic’ brand. Panasonic Systems Asia Pacific (India) Panasonic Systems Asia Pacific markets fax, copiers, laptops, projectors and mobile phones in India. It was established in May 2005. Panasonic Carbon India Co. Ltd. Panasonic Carbon India manufactures carbon rods through its plant at Andhra Pradesh.The company recorded net sales of US$ 7.6 for the year 2005-2006.

Panasonic in India Panasonic operates in India through its various marketing and manufacturing subsidiaries.

Panasonic Home Appliances India Co., Ltd Panasonic Home Appliances India Co. Ltd was formerly known as Indo Matsushita Appliances Co.

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10 8

8.1

8.4

2003-2004

2004-2005

7.6

6 4 2 0 2005-2006 Source: www.myiris.com

Ltd. It manufactures home appliances such as cookers and other kitchenware.The company started its operation in the year 1990. It is headquartered near Chennai. It holds ISO 14001 certification. It also serves as a marketing company. The company had a turnover of US$ 12 million in the year 2004-05 as compared to US$ 11 million in the previous period. It has also been exporting manufactured products to other countries. On exports front, the company registered a turnover of US$ 2.5 million in the year 2004-05. The exports figures for the previous year stood at US$ 2.4 million. Panasonic AVC Networks India Co. Ltd. Panasonic AVC Networks India manufactures audio and video systems such as TV, audio systems, plasma TV and home theatre. It was formerly known as Matsushita Television & Audio India Ltd. Company’s television sets are marketed under the brand name ‘National’. Production facility of the company is at Noida.

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Matsushita Air-Conditioning India Pvt, Ltd Matsushita Air-Conditioning India was set-up as a joint venture between MEI and Videocon, with Matsushita holding 70 percent of the stake and Videocon holding the remaining 30 percent. Presently, the company is a fully owned subsidiary of MEL.

Matsushita Washing Machine India Pvt. Ltd. Panasonic Washing Machine India is the subsidiary of MEI dedicated for the production of washing machines in India.The company was incorporated in the year 1999 in technical collaboration with Videocon.The manufacturing facility of the company is located at Ranjangaon near Pune, Maharashtra.

Matsushita Air-Conditioning India manufactures air-conditioners under the brand ‘National’.The company has its plant at Irungattukottai, about 55 km from Chennai, with an installed capacity of 0.1 million units. Panasonic Battery India Company Limited Panasonic Battery India Company, incorporated in 1972, manufactures batteries and battery appliances. It currently employs about 973 employees.The company has its manufacturing plants located at Vadodara, Gujarat and Pithampur, Madhya Pradesh. Company’s products are marketed under ‘Novino’ brand.

Table 16: Net Sales of Panasonic Battery India Company Limited (US$ million): 2003-2005

Net Sales (US$ Million)

Net Sales (US$ Million)

Net Sales of Panasonic Carbon India Co. Ltd. (US$ million): 2004-2006

37

40 32 28

30 20 10 0 2003

2004

2005 Source: www.myiris.com

Factors for Success Understanding Consumer needs Despite being a late entrant into the Indian market, the company has been able to effectively target its customers.This has been possible by launching products for specific consumer groups at a reasonable price.The company has

also been reactive to market trends adapting new product launches. Powerful brand name Panasonic is one of the most powerful brands worldwide.The company has been able to leverage this advantage in India also. ‘National’, ‘Nippon’ and ‘Panasonic’ are the most successful brands of the company.These are household brands in India and enjoy a good market share.

Panasonic plans to build on its success in the household appliances and battery divisions through launch of new products. Panasonic is planning to make India a global manufacturing hub.The company has decided to source colour television sets from India for its international markets.

Future Plans India has a large consumer class with over 208 million households. It presents a large untapped potential for companies operating in consumer electronics. Panasonic is planning to increase its market share and reach in the country.The company plans to introduce new products in the TV segment. It is mainly focusing on the high-end segment such as Plasma TV.The company is targeting a growth of about 15 percent in the high-definition TV market in the near future. 41