Panasonic first production unit in India

New Delhi: Consumer durables player, Panasonic, plans to set up its first manufacturing unit in India, for which it has shortlisted three locations - Chennai, Pune and Gurgaon - and is soon expected to take a final call in this regard, reports Business Standard.

The total initial investment that Panasonic has made in its India operations for the next three years is about $300 million (around Rs. 1,450 crore), out of which Rs. 360 crore will be spent on setting up the manufacturing unit and also a research and development centre.

A source close to the development said that the factory will manufacture home appliances, which include washing machines, refrigerators, microwave ovens, automatic cookers, vacuum cleaners and liquid crystal display televisions. The rest of the products will continue to be imported.

The source also pointed out that the decision to set up a manufacturing unit year would have a significant impact on the bottom line of the company since it would be exempted from paying custom duties, and would lead to at least a five percent drop in the prices of products which were priced between Rs. 6,000 and Rs. 25 lakh at present.

Analysts believe the move is being made to consolidate the company's position in the Indian market. "A company like Panasonic would be now looking at an increase in volumes and, so manufacturing within India would certainly make more sense," said Purnendu Kumar, Senior Analyst, Technopak India.

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