Japanese consumer durables firm Panasonic on Tuesday said it is looking at technical collaboration with several Indian firms, including the Tata Group, to develop India-specific products, underlining that the country is one of its significant markets.
The company, which recently set up its first research and development centre (R&D) at Haryana, said it is also getting into new categories like water purifiers this year, apart from enhancing its existing range of products with a focus on penetrating Tier II and III cities.
"We are looking for technological collaboration with Indian companies for bringing out India-specific products. One of them is the Tatas, with which we already have an internal tie-up. We want to take it further for developing products as well," Panasonic India President Daizo Ito said.
Without providing further details of the talks with the Tatas, he said the dialogue between the two firms is at a very early stage and is happening at the global level, although making India-specific products will be the priority of the deal.
"Besides, we are also in talks with IT and PC companies and a lot of other firms for making software and developing contents for our smart TVs," he said.
Panasonic India, which witnessed sales worth Rs 3,200 crore (Rs 32 billion) last fiscal, expects to achieve sales of around Rs 9,000 crore (Rs 90 billion) by 2012.
In the last three years, the company said it has grown over three times. As part of the expansion plan, the company is looking to tap small towns and cities by bringing in products like water purifiers, particularly for the mass market.
Ito said Panasonic India will focus on three categories as it looks to enhance its business in Tier II and tier III cities.
"Firstly, we are enhancing our small appliances, including our beauty care range. The next will be expanding energy products, like bringing in car batteries as well," he said, adding that the third area of focus is getting into water-related products like water purifiers.
He said around 70 per cent of the company's sales currently come from the metros, while the rest come from Tier II and Tier III cities. The company expects to make the ratio 50:50 within this fiscal.
"We are opening more brand shops or exclusive retail outlets. This year we will increase it to 150 outlets from 111. Besides, we are also enhancing our distribution channels," he said.
At present, India contributes around 4 per cent to the company's global turnover. The company plans to increase the share to 10 per cent by 2018.
For the year ended March 31, 2010, Panasonic's global sales stood at $ 79.4 billion. Panasonic India is also in the process of developing its third plant in the country at an investment of $ 200 million.
