Panasonic Life Solutions eyeing 10-15 pc growth in FY21

The company, which is the largest domestic manufacturer of electrical construction materials (ECM), does not see any adverse impact of COVID-19 pandemic and subsequent lockdowns on its overall business. "This year, our projection is that both in terms of sales as well as profits, the company does not see any adverse impact," Panasonic Life Solutions India Managing Director Vivek Sharma told reporters in a virtual press conference.

Panasonic Life Solutions India, earlier know as Anchor Electricals, is eyeing 10-15 per cent growth in the ongoing fiscal, a top company official said. The company, which is the largest domestic manufacturer of electrical construction materials (ECM), does not see any adverse impact of COVID-19 pandemic and subsequent lockdowns on its overall business.

"This year, our projection is that both in terms of sales as well as profits, the company does not see any adverse impact," Panasonic Life Solutions India Managing Director Vivek Sharma told reporters in a virtual press conference. "It may be difficult to grow the business more than 10 to 15 per cent, but up to that, it is possible," he added.

The company, a wholly-owned subsidiary of Panasonic Corporation, said its sales have reached pre-Covid levels. "In our sales, in the last two months we are almost at a level which we did last year," Sharma said, adding that it is an indication that things are coming back to normal.

Panasonic Life Solutions' net sales stood at Rs 3,400 crore in 2019-20. "If you look at the company, for the last three years, the market has grown at 7-8 per cent, whereas our sales have grown 15 per cent. We are the fastest-growing company in the electric and material construction sector," he said.

The company, which is a market leader in the segment, would not resort to competitive pricing for short-term gains, Sharma said. "The company would also make sure that its profitability is not compromised and we would not do anything for short-term gains and adverse impact the general discipline in the market," he said.

The company on Wednesday introduced 'Ziva' modular switches in the affordable range, targeting aspirational consumer segment looking for upgrade. The affordable modular switches under the Ziva range are priced Rs 28 onwards.

Talking about sales expectation for Ziva, Sharma said, "Our own projection is that it can reach, in two years, total sales of Rs 500 crore per year." The company expects Ziva's sales to cross Rs 100 crore mark in 2020. "We believe that there is a huge potential in this brand," Sharma said, adding that it would cater to affordable and entry-level segment in the modular switches, where the company was not present earlier.

According to him, Anchor brand's market share in the Indian switch market is at around 36 per cent, and along with Panasonic brand, the company controls about 40 per cent market, including business-to-business (B2B) and business-to-consumer (B2C) retail channels. "Our target with this Ziva range will be to focus on enhanced extraction from tier-III, IV and V markets, further expanding our presence and market shares in these smaller and uncharted territories.

"The current pandemic brought businesses to a halt, however, with this launch we look forward to resuming the growth journey and contributing to the speedy recovery across the country," Sharma said. Panasonic Life Solutions India is also focusing on Internet of Things (IoT) based products for B2B and B2C segment, where it is sensing a good potential.

The company is taking technological help from its Japanese parent company for this. Panasonic Life Solutions India currently operates seven manufacturing units at four locations, employing around 9,500 people.

It offers electrical solutions in consumer products ranging from wires and cables, lighting and solar power to wiring devices, switchgears and indoor air quality (IAQ)..