In a major development in the consumer electronics sector, Japanese giant Panasonic has decided to exit the refrigerator and washing machine segment in India, marking a significant retreat from part of its household appliances portfolio. The decision is expected to result in job losses and is being seen as a strategic shift in focus towards other high-growth categories.
This move will not affect Panasonic鈥檚 other products in the Indian market 鈥 such as air conditioners, televisions, personal care items, energy solutions, and B2B services 鈥 which the company plans to continue offering.
The Economic Times, citing sources within the company, first reported that Panasonic is shutting down production of fridges and washing machines at its Jhajjar plant in Haryana. This facility, which had been manufacturing these products for domestic consumption, will now focus on contract manufacturing for other brands.
A Panasonic spokesperson confirmed the move, stating, 鈥淚n 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 and cooling (AC), B2B solutions, electricals and energy solutions.鈥
The spokesperson added that Panasonic will assist dealers in clearing out existing inventory and ensure after-sales service and warranty support for customers who have already purchased refrigerators or washing machines.
The restructuring is likely to hit the workforce, with the report suggesting that job losses could run into double digits. While Panasonic has called it a 鈥渄ifficult but necessary decision鈥, it has also assured support for affected employees.
Whirlpool, Voltas Shares Surge
Even as Panasonic plans its partial exit, the Indian stock markets responded swiftly. Shares of rival firms Whirlpool and Voltas saw a sharp rise on June 26, closing the day with significant gains, some as high as 18%, driven by investor optimism that these companies could capture Panasonic鈥檚 market share in the refrigerator and washing machine segments.
Panasonic History
Founded in 1918 by Konosuke Matsushita, Panasonic is headquartered in Osaka, Japan. It initially manufactured lighting equipment before evolving into a global electronics powerhouse. Panasonic entered the Indian market in the 1970s, but it wasn鈥檛 until the 2000s that it expanded rapidly, culminating in the establishment of Panasonic India Pvt Ltd in 2012.
Over the years, Panasonic built a diverse product portfolio in India including microwaves, purifiers, kitchen appliances, TVs, headphones, personal grooming tools, projectors, batteries, solar panels, and security cameras, among others. Many of these will continue to be sold both online and offline.