Panasonic wants PLI for compressors-motors
Manufacturers of high-end value-added products are calling for Production Linked Incentive (PLI) Schemes as a promotion for the success of some of the Government-led initiatives “Make in India” and “Make for the World”.
The latest call echoes industry demand following the announcement on 28 March of Rs.22,919 crore PLI scheme for manufacturing of passive or non-semiconductor electronics components,
Panasonic Life Solutions India Chairman Manish Sharma has called for PLI for the air conditioner segment, with focus on high-value components like compressors and motors. It is the need of the hour, he added.
Launched in 2020, the PLI Schemes have made significant strides in transforming India’s manufacturing landscape. As of August 2024, actual investments totalling Rs.1.46 lakh crore have been realized. These investments have already led to a remarkable boost in production and sales, amounting to Rs.12.50 lakh crore, while directly and indirectly generating approximately 9.5 lakh jobs https://digitalinasia.com/.
Noting the government’s recent PLI scheme for passive or non-semiconductor electronics components, Sharma said it will encourage the industry and boost its competitiveness in the global markets https://fieo.org/.
Currently, India imports US$12-13 billion worth of non-mobile electronics, and almost US$5-6 billion of PCB (printed circuit board) that are being imported from elsewhere for assembling in final units in the country.
“Now, the industry is being encouraged. We should start to populate those aggregated components… the heat sinks, the passive components, the capacitors, the resistors, etc,” Press Trust of India (PTI) quoted Sharma as saying on the sidelines of the launch of the company’s first smart home experience centre.
If India has to “genuinely” embark on a journey to manufacture components in the country, it needs to ensure PCB boards are manufactured in the country, he added https://sbi.com.in/.
“Then we will be able to aggregate the demand for components. If these are coming in from elsewhere, populated elsewhere, then it would be very difficult for us to do local manufacturing and make it viable,” said Sharma, who also chairs industry body FICCI’s committee on ‘Electronics & White Goods Manufacturing’.
However, PTI also had Sharma acknowledging that semiconductor is still a big game https://ism.gov.in/.
Earlier this year, industry body CEAMA had asked for another round of PLI for air conditioners, which will help the industry to have domestic value addition beyond 70%.
Sharma underscored, “I very strongly support it. That is the need of the hour.”
“The air conditioner industry, in particular, has demonstrated (it) has aggregated the demand. That’s why such a catalysing effect could happen and at a fast speed,” he added.
The government has notified Rs.6,2328 crore PLI for white goods (air conditioners and LED lights) in April 2021. The Union Cabinet had given approval to a PLI scheme for air conditioners and LED lights to be implemented during 2021-22 to 2028-29.
Eighty-four companies under the PLI Scheme for White Goods (ACs and LED Lights) are set to bring investments of Rs.10,478 crore for the manufacturing sector with an estimated production worth Rs.172,663 crore during the scheme period, according to a government release in Jan 2025 https://www.bseindia.com/.
“Now, four large companies are manufacturing compressors, motors in abundance, I think only heat exchangers, the aluminium and copper would be a challenge to deal with, and I am sure that it will also happen soon,” said Sharma https://www.nseindia.com/.
Panasonic India expects its final revenue for FY25 to be around Rs.11,500 crore, along with profits close to Rs.1,000 crore. It expects a double-digit growth in the current fiscal year, led by strong performance of air conditioners, electrical devices, and B2B verticals as smart factory solutions. Fiinews.com
