Japanese electronics giant Panasonic India exits the refrigerator and washing machine markets in India. The move is part of a broader strategic overhaul, as the company refocuses its efforts on more profitable and future-ready sectors. According to a report by The Economic Times, the company failed to secure a substantial market share in these categories, prompting the exit.
A Panasonic spokesperson verified the development, stating that operations in these segments will be wound down, and production at the Jhajjar plant in Haryana will cease. The facility, which also acts as a contract manufacturer for other brands, will discontinue manufacturing refrigerators and washing machines.
“This step aligns with our global strategy and the evolving market landscape. Panasonic India exits these segments to better channel its resources toward home automation, HVAC (Heating, Ventilation, and Air Conditioning), B2B solutions, and energy-based services,” the spokesperson said. The company assured that it would continue customer service support, including warranty and parts assistance, during this transition.
Layoffs Expected Amid Business Realignment
As part of the exit strategy, Panasonic India exits with expected to implement significant workforce reductions. Sources indicated that layoffs could run into high double digits. The company acknowledged the job cuts, calling them a “difficult but necessary” step as it recalibrates its business strategy in the region.
“We remain committed to supporting affected employees throughout this process,” the Panasonic representative added. Despite withdrawing from refrigerators and washing machines, Panasonic will maintain its presence in other product categories such as televisions, air conditioners, and electrical solutions in the Indian market.
Industry analysts suggest that the withdrawal of Panasonic from these two consumer segments may open up additional market share for competitors. Brands that already have a stronger foothold in these categories could benefit significantly from reduced competition.
Stock Market Reaction Favors Competitors
Following the announcement that Panasonic India exits key consumer electronics companies showed marked gains. Whirlpool and Voltas, two key players in the Indian appliance market, experienced a surge in their stock prices during early trade on June 26.
Whirlpool shares climbed over 5 percent, touching a high of ₹1,455 per share. Voltas saw a rise of more than 2 percent, trading at ₹1,341 per share. Although both stocks pared some of their gains later in the morning session, they remained in the green. By 10:35 AM, Whirlpool was trading over 2 percent higher at ₹1,416, while Voltas held marginal gains at ₹1,315.
Market experts believe this trend reflects investor optimism about reduced competition and improved growth potential for remaining players in the refrigerator and washing machine categories. The Panasonic India exits could lead to a reshuffling of market dynamics, favoring established brands like Whirlpool and Voltas in the long term.
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