Panasonic Pulls Out of Washing Machine and Fridge Segments in India

On June 26, the stocks of electronics manufacturers Voltas and Whirlpool saw notable increases.

This occurred in response to a report that asserted Panasonic's withdrawal from loss-making categories in India, including refrigerators and laundry machines.

According to a media outlet, which cited persons familiar with the situation, Japanese electronics giant Panasonic Holdings is cutting back on its consumer electronics operations in India and is leaving the refrigerator and washing machine markets where it was unable to gain a sizable market share.

Company Declared the Move in an Official Statement

The media outlet has been informed by a Panasonic spokesperson that the company is indeed exiting the two segments in India. The company is closing its production line for these products at its facilities in Jhajjar, Haryana, according to the report.

At the moment, the company works as a contract manufacturer for other companies. Panasonic in India is rebuilding operations to concentrate on future-ready growth segments like home automation, heating, ventilation, and air conditioning (AC), business-to-business (B2B) solutions, electricals, and energy solutions, in accordance with our global strategy and changing market dynamics, a spokesperson said in an official statement.

In addition to continuing to offer complete customer support, including parts and warranty coverage, Panasonic will assist dealers with inventory disposal.

Panasonic in Restructuring Mode

According to various media reports, Panasonic's reorganisation exercise will involve significant layoffs, with the number likely to be in the high double digits. Following this, the business will keep operating in India in the television, air conditioner, and other categories.

When questioned about the potential layoffs, a representative of the company stated that the company is fully committed to supporting and aiding the impacted employees and that it is a difficult but necessary step.

By increasing their market share, the other competitors in the categories will probably gain from the departure of a significant player from the market. Voltas shares increased more than 2% to trade at INR 1,341 apiece, while Whirlpool shares surged more than 5% to reach their day's high of INR 1,455 apiece.

Additionally, the business stated that it will help dealers get rid of the leftover refrigerator and washing machine inventory. Existing customers will continue to get warranty coverage, spare parts, and after-sales service.

Panasonic's action is in line with a broader worldwide trend in which established electronics companies are simplifying their consumer portfolios in order to give priority to high-growth sectors.

The business is currently establishing itself as a major force in commercial HVAC (heating, ventilation, and air conditioning) systems, sustainable energy technologies, and smart home ecosystems in India.