Panasonic to increase prices if rupee slides beyond 62 to USD
Japanese consumer durable major Panasonic said today it would be forced to pass on the hike onto consumers if the Indian rupee depreciates further and falls below the Rs 62 to a USD mark.
Ahmedabad: Japanese consumer durable major Panasonic said today it would be forced to pass on the hike onto consumers if the Indian rupee depreciates further and falls below the Rs 62 to a USD mark.
"We have factored in the impact until the Indian rupee is at 62 to the US dollar. But, if the rupee depreciates below Rs 62 to the USD, then we would be forced to pass on the impact onto consumers," Panasonic India Managing Director Manish Sharma told reporters here Thursday.
The company proposes to invest Rs 1,500 crore in India over three years to target revenues of over Rs 20,000 crore from the country. It closed with a turnover of Rs 7,400 crore last year.
In a bid to minimise the impact of a depreciating rupee, the company is working on a 'reverse integration' plan for its manufacturing facility at Jhajjar in Haryana, as well as looking beginning export operations from there.
"We are working on reverse integration like controlling input costs and focussing on localisation, among other measures for our recently set up factory in Jhajjar for making air conditioners and washing machines," Sharma said.
"We are also looking at catering to the Middle-East and Africa from Jhajjar," he said.
"We are in discussion with local companies to develop reliable products in India to minimise the impact," he said, adding that, components like motors of washing machines may be sourced locally.
Geared up to roll out an agressive sales promotion campaign ahead of festivals in Gujarat, Panasonic will enhance the tally of its retail counters in the state from the existing 680 to 900, within this fiscal year.
"Five more retail sales points will be opened in next 45 days in Gujarat, which is among the top three markets for us, contributing nearly 11 per cent to our all India sales," a company official said. (MORE)