Panasonic reverses stand on Indianising top deck

Panasonic has reversed its five-year strategy of Indianising its top deck in India, appointing expatriate executives from its Japanese headquarters to key roles, according to recent developments. Kazuki Sato, an expatriate, has been appointed executive director at Panasonic Life Solutions India, based in Gurugram. Yoshiyuki Kato, another expatriate, has been named managing director and chief executive officer, while Hirokazu Kamoda, who previously headed the air-conditioner division, has been appointed deputy managing director.

A spokesperson for Panasonic Life Solutions India stated that Sato will focus on strengthening the company's support structure across India, setting the stage for future business expansion. The spokesperson confirmed that Kato is leading the India business, and Kamoda has been assigned additional responsibility as deputy managing director to foster cross-functional synergy.

The Japanese electronics giant exited the refrigerator and washing machine segments and reduced its workforce by over 10% in the previous year, citing global restructuring efforts aimed at exiting loss-making businesses worldwide. Both segments failed to compete with aggressive local rivals such as Voltas, Samsung, and LG. The company has now downsized its operations to about half the size, with no further layoffs reported at present.

Despite the restructuring, Panasonic Life Solutions India reported a 50% year-on-year growth in its residential air conditioner business in the summer. The company's FY25 sales amounted to ₹11,500 crore, with a net profit of ₹1,100 crore. Experts estimate that India's consumer durables market could reach ₹3.25 lakh crore by 2030, growing at a rate of 8-10%, driven by factors such as increasing household incomes, easier financing, premiumisation, and replacement demand.

However, according to a recent report, a significant portion of this growth could still be met through imports, as the pace of localisation may not be sufficient.