Consumer durables maker Panasonic India said on Monday that it was likely to focus aggressively on Tier III markets in the country by next fiscal (2013-14). Panasonic India is a subsidiary of Panasonic Corporation of Japan.
The company would focus on “mass segment products” and look at new channel partners to get into smaller towns.
It currently, has 8,500 dealers and 134 standalone stores. Plans are afoot to take the exclusive store count to 200 by the end of this year.
“We were earlier considered as a niche product. But now we want to focus into the mass category. The biggest growth is in smaller towns,” Mr Manish Sharma, managing director, consumer products, Panasonic India Pvt Ltd, told reporters on the sidelines of the launch its beauty products range here in the city.
According to Mr Sharma, non-Tier-I towns, currently, account for 15 per cent of the consumer products’ segments top line. The division was eyeing to push the contribution (of Tier II and Tier III markets) to nearly 30 per cent of its turnover. The consumer products division reported a turnover of Rs 3,200 crore last fiscal (2011-12).
According to Mr Sharma, the consumer division segment is expected to break even during the current fiscal.
He however, did not speak about the accumulated losses of the company. “We are looking at consolidating our position in the Indian market,” Mr Sharma said.
Panasonic India has already announced an investment of $ 300 million (Rs 1,700 crore) in India that will include setting up a new plant at Jhajjar (Haryana) and marketing campaigns.