Anchor Electricals Private Limited, a wholly-owned subsidiary of Panasonic, on Wednesday announced the change in its legal entity to ‘Panasonic Life Solutions India Private Limited’, with effect from April 1, 2019.
With this, the brand has also changed its corporate identity from ‘Anchor by Panasonic’ to ‘Panasonic’.
“We want to be a billion-dollar company by the financial year 2021-22, which means we should grow at a CAGR of 15 per cent on sales and a CAGR of 17.5 per cent on profits,” said Vivek Sharma, MD, Panasonic Life Solutions India Private Limited.
Last year, the company’s profits grew by 32 per cent and sales grew by 16 per cent.
However, the positioning for the two core brands remains the same, with Anchor targeting the value for money segment and Panasonic catering to the premium end of the market.
With this step, the brand Panasonic Life Solution Private Limited will also be foraying into a new category, modular kitchen, which is being launched currently.
“Panasonic plans for India to be the hub for expansion into South Asia, West Asia and Africa. Currently, our exports hover at just about 1 per cent of our sales. Our intention is to take this to 10 per cent,” said Sharma.
The exports will include lighting, indoor air quality (IAQ), switches. It is setting up a new team in India for exports.
On whether there will be any synergy with Panasonic’s electronics business, Sharma said: “The two companies stand apart. They have a different identity. The objectives from the organisation perspective is different. Yet, although there seems to be contrasting styles, there will be certain synergies because both the companies, on the back end, are moving into B2B operations. The objective will be to share, cross-sell each other’s strengths and product offerings.”
The companies are setting up a common sales team, which takes the strength of both the companies and offer it to the consumers with more options.
The other product categories that Panasonic Life Solutions India will be bolstering are its IAQ and lighting segments.
“The industry size is huge for both these and we are not in the top three brands, whereas internationally, Panasonic is brand number three in both lightning as well as IAQ. So, we want to get that right by getting ourselves in the lead position in these two categories,” he said.
Apart from this, it plans to consolidate its position among wiring devices, wherein it currently has a market share of 40 per cent. In the lighting category, it plans to raise its market share from the current 4 per cent to 10 per cent, from 3 per cent to 7 per cent in IAQ and from 6 per cent to 12-13 per cent for switchgears.