Panasonic Life has revamped business plan to recapture growth, says MD Vivek Sharma

2020-05-28

Panasonic Life Solutions India Pvt Ltd, formerly known as Anchor India Ltd, is aiming for a 15%-plus growth in India revenues in the current financial year despite the Covid-19 disruption, its managing director Vivek Sharma said.

In April, the company drew up a revamped-business plan to re-orient strategy and make up for lost sales due to the lockdown.

The unlisted company recorded revenues of Rs 3415 crore for the year with a profit of Rs 615 crore in 2018-19. Its 2019-20 revenues are likely to be about 1% less than 2018-19 numbers according to Sharma. The profit numbers are still being worked out. Panasonic Life is now targeting Rs 4000 crore revenues for the year 2020-21 with the new business plan.

The company that sells switch gear, wires, electrical fittings and lighting equipment, had earlier set the same revenue target for the year 2019-20. It also wanted to touch the billion dollar revenue mark in India by 2022.

However, the lockdown announced in late March saw a total wipeout of revenues in April. It also delayed the construction of its new factory in Andhra Pradesh that was set to begin in June, but now will start only in September.

Sharma says it has used part of its its Rs 1500 crore cash reserves to pay salaries for March and April, but still has about Rs 1200 crore. In an interview Sharma said the new growth strategy will involve how Panasonic Life Solutions can comeback in the second half of the year.

“April and May are crucial months for ceiling fans and regulators. We lost those months, but will have to come back and make up for it in September-October,” Sharma explained.

Meanwhile the Covid-19 pandemic also offers its own opportunities and Panasonic Life Solutions has supplied 20,000 fans for the Corona Care Centres set up in different parts of Mumbai.

One of the new products that it brings to the market is a Panasonic C-Kit that will help companies ensure social distancing after reopening. It will use Bluetooth technology to track employees and reduce need for touching surfaces in office and crowding and offer a no-touch biometric attendance system. The company is also selling this to luggage makers as an implant in the bags to help travellers track their luggage.

While pushing for these business-to-business and business-to-government channels and changing its business mix, Sharma says that 85% of the sales of the company still remains business-to-consumer and revenue has to grow in that segment.

Panasonic Life started a new line of products to cater to the Pradhan Mantri Awaas Yojana projects, with price points below its usual range. “These were in the lower end of the price range but with the same quality levels of Panasonic,” Sharma said. He says the company will now use this range to penetrate the tier-iii, tier-iv and tier-v markets of the country and expand its market.

Reference: The Economic Times