Panasonic pulls plug on washing machines, refrigerators in India

Panasonic Holdings is downsizing its consumer electronics business in India by exiting loss-making categories like refrigerators and washing machines where the Japanese electronics manufacturer has failed to gain significant market shares, said two industry executives.

Panasonic is also shuttering the production line for these products at its factory in Jhajjar, Haryana, the executives said. The unit is currently operating as a contract manufacturer for other brands.

While the Indian arm is still evaluating the number of workers that will be laid off due to the restructuring exercise, the executives said it will be in high double digits, as the company is trying to relocate some workforce including in the factory.

Following the revamp, Panasonic will operate in two major electronic categories in India - televisions and air-conditioners.

A Panasonic India spokesperson confirmed the decision to discontinue washing machine and refrigerator categories, and sharpening of focus on residential and commercial ACs, and TVs.

"In line with our global strategy and evolving market dynamics, Panasonic in India is rebuilding operations to focus on future-ready growth segments such as home automation, heating ventilation & cooling (AC), B2B solutions, electricals and energy solutions," the spokesperson said. "Panasonic will support dealers in inventory liquidation and continue providing full customer service, including parts and warranty coverage."

The spokesperson said Panasonic is informing all partner companies sourcing products from its Haryana plant to give them a sufficient runway for transition.

On layoffs, the spokesperson said it is a "difficult but necessary step" and that the company is "fully committed to supporting them (employees affected) through this transition and are actively providing necessary assistance to ensure they are equipped for their next opportunity."

Industry executives said Panasonic failed to garner more than 1-3% market shares in refrigerators and washing machines due to cutthroat competition from Korean brands LG and Samsung, and Chinese brands like Haier.

There is also pressure on its Japanese parent to restructure the business across geographies and exit loss-making ventures.

An industry executive citing market share data from sales researcher NielsenIQ said Panasonic's recent share is 1.8% in washing machines and around 0.8% in refrigerators.