The reports emphasise that the company was not able to attract more than 1 to 3 per cent market shares in washing machines and refrigerators
By exiting loss-making categories like washing machines and refrigerators, Panasonic Holdings is downsizing its consumer electronics operations in India, as per media reports. The company has not been able to gain significant market shares, the reports added.
Production lines for these products are being closed at its factory in Jhajjar, Haryana. The reports noted that the unit is operating as a contract manufacturer for other brands currently. Some job losses are expected, with arrangements of support for affected employees, as per the reports.
The reports emphasised that the Indian arm is evaluating the number of workers who will be laid off. The company is looking to relocate some workforce, as per the reports, which added that post revamp, the company will operate in the television and air-conditioner segments in the country.
The company is notifying all partner companies sourcing products from its Haryana facility to allow them enough time for transition. The reports highlighted that the company will support dealers in inventory liquidation. It will also continue to provide complete customer service.
The reports emphasised that the company was not able to attract more than 1 to 3 per cent market shares in washing machines and refrigerators. As per the reports, tough competition from brands like LG, Samsung, and Haier made the job tough for Panasonic. The pressure on the company’s Japanese parent to exit loss-making ventures and restructure the business across geographies also played part in the decision, the reports noted.
