Panasonic Life Solutions India is setting its sights on expanding its footprint in the air-conditioner market, with ambitions to elevate its market share from 7.5% to 10% over the next three years. During a recent discussion at the company’s facility in Jhajjar, Chairman Manish Sharma revealed that a surge in demand for their consumer appliances, particularly air conditioners, is driving this growth.

Strong Demand for Air Conditioners

Sharma noted that consumer appliances account for approximately 30-35% of Panasonic’s overall revenue. In the fiscal year 2025, the company experienced remarkable growth, achieving a 47% increase in its residential air conditioner segment.

• Projected Growth: Sharma anticipates a 25% rise in air conditioner demand in India this year.
• Revenue Breakdown: Half of Panasonic’s revenue is derived from its electrical equipment sector, which includes the well-known Anchor brand, acquired in 2007.

Business Outlook and Revenue Growth

The remaining 15-20% of revenue stems from B2B operations, incorporating smart factory solutions and other services. Looking ahead, Sharma predicts that total revenue for FY25 could reach around Rs 11,000 crore, marking a 9-10% increase from the previous year.

• Optimistic Projections: Sharma expressed confidence in achieving 10%+ growth in the current year.

Impact of the Production Linked Incentive Scheme

The Production Linked Incentive (PLI) scheme has significantly bolstered domestic sourcing of components used in air conditioners, increasing it from 20% to 65%. Sharma expressed optimism that this figure could rise to 80-85% within the next two years, although he cautioned that the industry might face challenges during this transition.

Pricing Strategy and Future Plans

In light of potentially heightened demand outpacing supply, there is a possibility that air conditioner manufacturers may need to adjust prices. However, Sharma reassured that Panasonic currently has no immediate plans for a price hike, feeling secure at least until the end of May.

Additionally, Panasonic India has unveiled a new experience center at its Jhajjar facility, designed to showcase its comprehensive smart home solutions tailored for B2B clients.

With these ambitious plans and innovative strategies, Panasonic Life Solutions India is poised to make a significant impact in the air-conditioning market and beyond.