New Delhi: Panasonic India may miss the target of achieving Rs 5,500 crore in sales from consumer durables segment in 2012-13, mainly due to lower than expected growth in television demand.
The Indian subsidiary of the Japanese giant Panasonic is likely to fall short by Rs 500 crore from its target for this fiscal in the consumer product division (CPD).
"Many segments in CPD were low and some categories even witnessed fall. We may end the current fiscal with a turnover of Rs 5,000 crore as against a target of Rs 5,500 crore," Panasonic India Managing Director (Consumer Products Division) Manish Sharma told PTI here.
However, the turnover of CPD will be much higher in this fiscal than what was in 2011-12, when the company had registered a sales revenue of Rs 3,200 crore, he added.
For the overall operations, Panasonic India had announced the target of Rs 10,000 crore turnover for FY'13.
"The microwave sales have fallen very drastically. The industry sales have dipped by around 20 percent in this fiscal," Sharma said.
The company's sales, however, grew by around 16 percent in the air conditioner segment.
"The biggest setback was the TV segment. We had set a target of 45 percent growth, but we witnessed a rise of only 27 percent in 2012-13," Sharma said.
When asked about the outlook, he said the company does not expect improvement in the near future.
"The current condition in India is very tough. There are some fundamental changes happening in India and consumers are not spending money. I do not see the situation improving in the next 12 months," Sharma said.
The company is hoping for a 15 percent growth in CPD in next financial year, he added.
Last week, Panasonic India had said it will invest Rs 120 crore in the split air conditioner segment during 2013-14 as it looks to capture 20 percent of the market from 14 percent in this fiscal.
In December, the parent Panasonic had said the Indian operations will become its second largest in Asia Pacific after China with an annual revenue of USD 10 billion (over Rs 50,000 crore) by 2018.
It is aiming at increasing revenues by over two-fold to Rs 25,000 crore by 2015.
The company's Indian subsidiary, which hopes to have a turnover of Rs 10,000 crore in this fiscal, is aiming to be the number one in the region by 2030 from its current ranking of below 10th position.
To achieve its target, the company will set up more production facilities in India as it looks to make the country a manufacturing hub.