Panasonic India's Remarkable Transformation Journey
After nearly two decades of operations in India, Panasonic India has evolved from being perceived as a Japanese multinational to becoming recognized as an Indian company with Japanese heritage, according to outgoing Chairman Manish Sharma. The executive, who recently announced his departure after 13 years of leadership, shared insights about the company's significant transformation during an exclusive interview with PTI.
The Two Engines Driving Growth
Sharma revealed that Panasonic India is strategically pivoting toward becoming a solutions-oriented organization powered by what he describes as "two engines of growth". The first engine comprises the traditional consumer business, including air conditioners, televisions, and various appliances. The second, and currently faster-growing engine, involves B2B and industrial solutions spanning automation, energy systems, and digital integration.
"Both engines are well-oiled. The second one is driving faster growth at the moment, but both are critical for balance and resilience," Sharma emphasized, highlighting the company's diversified approach to business in the Indian market.
Smart Factory Solutions: The Future Growth Driver
The outgoing chairman expressed particular optimism about the smart factory solutions business, which he described as "growing phenomenally." He projected that this segment could achieve revenues between ₹1,000 to ₹2,000 crore within the next few years. This growth is primarily driven by the expanding adoption of surface mount technology (SMT) machines, which are essential components in electronics manufacturing.
"These are exciting times because Panasonic India's identity is shifting—from a consumer company to a technology and manufacturing powerhouse. That transformation is well underway," Sharma stated, underscoring the strategic repositioning of the Indian operations.
Cultural Transformation and Leadership Legacy
Reflecting on his most significant contribution during his tenure, Sharma identified the fundamental shift in company mindset as his proudest achievement. "Transforming the company's mindset from being product-centric to solution-driven, and from a hierarchical to an entrepreneurial company" represented the core of his leadership philosophy.
By decentralizing decision-making power, Sharma fostered a culture of accountability and innovation. "When I joined, approvals and hierarchies defined the company. Today, we are an organization where people feel ownership and take decisions boldly," he explained, adding that witnessing this empowerment across all organizational levels has been his most rewarding experience.
Pioneering Indian Leadership in Japanese Companies
Sharma's appointment marked a significant milestone in the Indian corporate landscape, as he became one of the first Indian executives to lead a Japanese multinational's operations in the country. His success paved the way for similar appointments across other Japanese companies operating in India, including Nikon, Sony, Daikin, and Hitachi.
In 2016, Sharma achieved another breakthrough when he was appointed to the executive committee of Panasonic Corporation in his early-40s, becoming "the youngest to become the executive officer of Panasonic Corporation in its 100-year history." At that time, among 42 executive officers in the corporation, only three were non-Japanese, with Sharma being both one of them and the youngest ever appointed.
Transition and Future Plans
Sharma will be succeeded by Tadashi Chiba, a Japanese national currently serving as MD & CEO. The outgoing chairman acknowledged that convincing global management to accept his resignation proved challenging, particularly since his role as Chairman since 2021 had focused on strategic planning and business development.
Looking ahead, Sharma, who will complete 30 years in his professional career in January, hinted at his next venture. "Around March or April, I should be ready to announce what's next. What I can promise is that it will be larger in magnitude and impact than anything I have done so far," he revealed, indicating his intention to contribute to India's manufacturing growth at this crucial juncture.
The executive expressed confidence in the team he built over the past decade, stating that his departure creates no void as the organization now possesses strong leadership capabilities at multiple levels.
From Re-entry to Reinvention
Sharma joined Panasonic in 2008 during the company's significant re-entry into the Indian market, when various business units were being integrated. At that time, "the size of Panasonic was really small" and the initial seven to eight years focused on building the consumer portfolio that defined the company's identity.
Following his elevation as President & CEO, Sharma dedicated substantial effort to developing B2B businesses, including industrial devices, smart factory solutions, SMT machines, and energy products. "My effort in last 7-8 years has gone to build the future of Panasonic, which is the B2B and the solutions businesses," he noted.
This strategic focus has fundamentally transformed Panasonic's position in India, creating a company that is increasingly viewed as "operating for India for its people, with its roots in Japan"—a transformation Sharma considers his most significant accomplishment during his nearly 13-year leadership tenure.
