Panasonic India Revenue Dips 10%; Company To Enter IT Infrastructure Management

Panasonic Corp revenue from the Indian market dipped for the second consecutive year with Japan’s leading consumer electronics maker facing intense competition in the smartphone and television markets, and consumers shifting to buy value for money Chinese and online focussed brands amidst an economic slowdown.

As per Panasonic India’s latest regulatory filings with the Registrar of Companies (RoC) accessed through business intelligence platform Veratech Intelligence, revenue from operation dropped 10.6% year on year in 2018-19 at Rs 4,758.62 crore, while its net loss more than tripled at Rs 459.58 crore against Rs 131.88 crore in FY18.

The company in its filings said sale of products in FY19 has dipped vis-à-vis last year, while the proceeds from sales of services has increased by 22% as compared to last year. It said the operation of the company was affected during the year “due to certain internal and external factors and risk scenarios.”

Panasonic India has also amended its memorandum of association (MoA) to allow it enter new businesses such as IT infrastructure management in areas like cloud, networking and IT security, as per its RoC filings and analysed by Veratech Intelligence.

“The company had first amended its memorandum in 2015 when it decided to expand its portfolio of goods and services in India. Despite, the same company’s topline hasn’t seen any remarkable growth. The current measure of venturing into new businesses seems to be a part of the same strategy of diversifying and opening new revenue streams,” said Mohit Yadav, founder at Veratech Intelligence

Panasonic India’s consumer electronics and home appliances revenue dropped by 14.6% at Rs 4057.48 crore in FY19, while its B2B business such as automotive systems and welding systems increased revenue, as per RoC filings.

Panasonic in the filings said the television market in India witnessed a slowdown due to volatile exchange rates and higher custom duties on open cell TV panels which impacted the company’s performance. It said the refrigerator business grew strongly, and in B2B segment the SMT machine/smart factory solutions business grew by more than four times.

When contacted, a Panasonic India spokesperson said the drop in profit is due to few factors such as exchange rate impact with rupee depreciating during that period, impact of capex investments and drop in mobile phone revenue.

The person said the company has shifted its mobile retail business mostly on e-commerce platform and focusing on limited models. The company’s appliances business specifically refrigerators grew by 74% growth in FY19 while the industry recorded a negative performance of 3%. “With respect to TV, the industry has seen a de-growth hence we also de-grew but maintained market share,” the spokesperson said.

Panasonic India spokesperson further added that the company has invested significantly in B2B and smart factory solutions which has grown over four times. “We believe this will help us boost our revenues by 50% in the coming times,” the person said.―Newsfeed

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