Panasonic is contemplating the establishment of a new manufacturing facility in India and is preparing to participate in the reopened window for the white goods' Production-Linked Incentive (PLI) scheme. This move aligns with Panasonic's strategic intent to leverage the long-term potential of the Indian market. The application window for the PLI scheme is open from September 15 to October 14. This initiative aims to capitalize on the growing industry confidence and increasing demand in India's air conditioner (AC) and LED manufacturing sectors.

Tadashi Chiba, MD and CEO of Panasonic Life Solutions India, revealed that these expansion plans align with Panasonic's broader objective of transitioning from a Japan-led operational model to one that is increasingly India-led. He emphasized the growing role of Indian teams in providing global services and the company's desire to strengthen this model.

While Panasonic is well-known as a consumer durables brand, almost half of its revenue in India now originates from the business-to-business (B2B) segment, with growth being propelled by products for supply chain solutions, industrial devices, and building systems. Chiba noted India as one of the company's fastest-growing markets, citing not only strong demand but also the country's robust resources and customer networks, which are particularly valuable for the B2B segment.

Panasonic declined to specify which categories under the PLI scheme it was considering. However, the company is focusing on three key high-growth areas for business expansion: AI platforms and services, electric vehicles (EVs), and living spaces as a solution.

The government's PLI scheme for white goods, which includes air conditioners and LED lights, was initially notified in April 2021. The scheme provides incentives ranging from 4 to 6 percent on incremental sales for manufacturing components of these goods. It is slated to run until 2028-29 with a total outlay of Rs 6,238 crore, of which Rs 287 crore has already been disbursed. The scheme aims to enhance domestic production of components and increase value addition in the sector.

As of January 2025, 83 applicants with committed investments worth Rs 10,406 crore have been approved under the PLI scheme. These include major industry players such as Voltas, Blue Star, Hindalco, Daikin, Hitachi, Panasonic, and LG. The scheme has been instrumental in driving investments in components like heat exchangers and compressors.

In a related development, Panasonic India had previously announced plans to invest Rs 300 crore to produce heat exchangers and compressors under the PLI scheme. The company has also invested nearly Rs 300 crore in establishing an electrical equipment material and wiring device manufacturing facility at Sri City in Andhra Pradesh.

The government's decision to reopen the application window for the PLI scheme reflects the growing confidence within the industry and the increasing demand for AC and LED manufacturing in India. Both new applicants and existing beneficiaries looking to expand or diversify their investments are eligible to apply.