Matsushita In Revamp Mode, Writes Off Losses
Japanese consumer electronics major Matsushita Industrial Electric Company is restructuring its business in India by bringing investments currently routed through subsidiaries under it, writing off losses and repositioning the Panasonic brand while phasing out the National brand.
Moreover, Matsushita Television and Audio Company India is being renamed Panasonic AVC Network India Co Ltd and will undertake manufacturing and marketing of computer and networking products besides televisions and audio systems.
Company sources said Matsushita Industrial Electric, the parent company, was infusing Rs 39 crore fresh capital in the form of preference shares into Matsushita Television to write off accumulated losses worth Rs 22 crore.
Some long-term idle assets are also being written off to make a healthy balance sheet. The preference shares will be redeemable. The equity base of the company would, however, remain unchanged after the restructuring, a company executive said.
Consumer electronics products, white goods and kitchen appliances will now be sold under the Panasonic brand. Only dry batteries may continue to be marketed under the Nippon and Novino brands. Panasonic will replace the National brand by March 31 next year.
Four years ago, Matsushita had converted its marketing subsidiary in India, National Panasonic India Ltd, into a wholly owned subsidiary. It could not be ascertained whether this company will also be renamed.
But sources said Matsushita had started restructuring its battery business by transferring shares held by Matsushita Battery Company to Matsushita Industrial Electric.
Indo Matsushita Carbon Co Ltd, a joint venture for manufacturing battery rods, is also being renamed. A company source said since the Nippon brand had a strong equity in the country, Matsushita would not rename it. However, the fate of the Novino brand could not be ascertained.
Even kitchen appliances, manufactured and marketed through a joint venture with Chennai-based businessman Obul Reddy, would be brought under the Panasonic brand, the sources added.