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Panasonic Appliances India Company Ltd, a subsidiary of the $79 billion Panasonic Corporation, said its plans to integrate sales and marketing activities with Panasonic India had been put in abeyance. As part of its measures to take on the tough market conditions and competition, Panasonic is planning to rationalise overheads.
At the annual general meeting held here on Tuesday, the company's chairman said, they were contemplating integration of its sales and marketing activities with Panasonic India Pvt Ltd and there had been several meetings with Panasonic representatives to decide on various terms and conditions in this regard.
"However in the absence of not arriving at a consensus on the terms and conditions, the integration proposal has been kept in abeyance," he said. The company was incorporated in 1988 in the name of Indo Matsushita Appliances Company Ltd, promoted as a joint venture by P Obul Reddy under a technical and financial collaboration with Matsushita Electric Industrial Co Ltd, Japan (now known as Panasonic Corporation). The company's name was changed to Panasonic Appliances India Company Limited in 2012.
Meanwhile, Panasonic Corporation has infused Rs 15.78-crore in the BSE-listed Panasonic Appliances India in 2012-13. The money would be utilised mainly for repayment of long-term loans. Panasonic Corporation infused the money through preferential issue and by subscribing zero coupon Compulsory Convertible Debenture (CCD's).
"The company has been going through a difficult phase and is striving to address and overcome several challenges and limitations it is facing," he said.
While on one side, the competition from both domestic and foreign players is increasing, the company will continue to focus on further rationalisation of overheads, increased productivity and quality, he added.
“The company is at the disadvantage of having only two products manufactured by it (cooker and mixer grinder). Therefore, efforts are being taken to increase its manufactured product portfolio with the support of Panasonic Corporation," he said.
It is also planning to reduce its dependency on the Andhra Pradesh market, which was considered as one of the major factors affecting company's performance. Plans are being implemented to increase its share in Tamil Nadu and other eastern markets. Besides, the company plans to increase export sales and seek more support from Panasonic Corporation.
In 2012-13, its accumulated loss stood at Rs 6.16-crore as against the previous year's Rs 19.66-crore.
