Anchor Electricals, a part of the consumer durables major Panasonic will now be renamed Panasonic Life Solutions. The company is also targeting tripling of sales by 2021-22.
In an interaction with Moneycontrol, Vivek Sharma, Managing Director, Anchor Electricals (now Panasonic Life Solutions) said the sales grew by 16 percent to Rs 3,410 crore in FY19.
Anchor sells switches, fans, lighting, wires and cables. Panasonic acquired Anchor Electricals in 2007.
Sharma said after the acquisition, the first decade went into compliances and assimilation into the Panasonic culture. In the first decade (2007-17), the company's sales grew at a compounded annual growth rate of 13 percent, he said.
"We then decided to do a review and recalibrate ourselves for the second decade after the acquisition. Hence, now we are aspiring for a tripling of the sales by FY22," he added.
Sharma explained that on the one hand customer aspirations are on the rise, and on the other, the Indian government has been promoting the housing industry. This, he added, meant there was a lot of scope for growth.
"We are no longer a product company but a solutions and services provider. So this has led to the change in our name," he added.
The company is looking at a mix of organic and inorganic growth opportunities to expand the business. Sharma added that in switchgear and wiring, lighting and indoor air quality space, they are weighing options for inorganic growth.
"Money and intent is not something we lack. At present, the biggest two segments are indoor air quality (fans, air purifiers, ventilators, exhaust fans) and lighting. We will be focussing a lot on these areas," he added.
Anchor being a debt-free and cash-rich company is at a competitive advantage, according to Sharma. He added that they will also be expanding their manufacturing facility to add an eight one, an announcement for which will be made in May. The company's seven manufacturing facilities will reach its full capacity by 2020.