Panasonic conducts feasibility study for fridge plant in India

While its television, air-conditioner, washing machines and mobile manufacturing units are closing in on 100 per cent 'Make in India', Panasonic India has now begun a feasibility study to bring its refrigerator manufacturing process to the country.

Currently, Panasonic sells around 350,000 refrigerators in India, a 12 million units huge market. However, the growing traction in consumer durables, especially in double door frost-free refrigerators has led to Panasonic mull its own plant in India.

"We are currently conducting a feasibility study on the possibility of a refrigerator plant in India. The feasibility study will look at all aspects of manufacturing including component sourcing as well as market demand. Given the growth in demand for refrigerator, while work on feasibility study is on for setting up a manufacturing plant in India, we are also looking at raising refrigerator imports in next one year," said Manish Sharma, president and CEO, Panasonic India Pvt Ltd.

The company currently imports refrigerators from Thailand and Vietnam, which going forward it plans to manufacture in India. Apart from its existing Jhajjar plant in Haryana. Company is also evaluating other locations as part of the feasibility study for the refrigerator plant.

Panasonic India is looking at 100 per cent localisation as part of the 'Make in India' campaign for almost all of its products.

"While our television production is closing in on 100 per cent Make in India, with only one or two SKU of high quality being imported, we have achieved 85-90 per cent Make in India for air-conditioners and a similar amount for washing machines. Going forward, we wish to bring refrigerator manufacturing to India too," said Sharma, while adding that the company is also planning to bring its lithium-ion battery technology to India in near future.

From a Rs 8700 crore turnover in 2015-16, of which three to four per cent were exports, Panasonic India is anticipating a turnover of Rs 10800 crore in the current financial year. Of these, the company expects roughly Rs 4800 crore to come from consumer durables, Rs 2500 crore each from mobile phones and its subsidiary Anchor Electricals, and Rs 1000 crore from its other business.

Apart from refrigerator, Panasonic India has seen growth in its television segment of around 35 per cent year-to-date (YTD) and 15 per cent growth in its air-conditioners.