Panasonic Corp announced the progress of the "Transformation Project," which is for restructuring the businesses and organizations of Panasonic, Panasonic Electric Works Co Ltd and Sanyo Electric Co Ltd.
The announcement was made Oct 29, 2010. Sanyo will become a wholly owned subsidiary of Panasonic in April 2011.
"We will announce specific structures and strategies in the first half of fiscal 2011, but we have almost finished developing a framework," Panasonic President Fumio Ohtsubo said.
The businesses of the three companies will be categorized into "Consumer," "Solution" and "Device," and nine divisions will be created in regard to products and services. The headquarters of the companies will be integrated in January 2012. Also, by streamlining overlapping businesses, Panasonic aims to achieve a synergetic effect worth an operating income of ¥60 billion (approx US$746 million) in fiscal 2012.
As for the mainstay consumer business, Panasonic puts priority on the reinforcement of its marketing power. Currently, the company has separate marketing divisions for Japan and other countries. But it will integrate them and focus on emerging countries where demands are growing.
"By creating demands in each region, we need to develop, manufacture and sell products on site," Ohtsubo said. "We will consider Japan just as one region of the world, not as a home country."
Moreover, Panasonic announced that it will start using only the "Panasonic" brand in April 2012, gradually reducing the production under the "Sanyo" brand expect for regions where Sanyo has a large share in the white appliance market such as Southeast Asian countries.
Commenting on the company's device business, Ohtsubo said, "We will make the most of Sanyo's strengths such as lithium-ion rechargeable batteries and solar cells." He expects that the "energy device" business including lithium-ion rechargeable batteries and solar cells will grow by more than 10% per year.
As for the solution business, which Panasonic plans to make the main source of income, the company will launch four divisions. One is the "environment and energy solutions" division, which offers, for example, multiple energy-saving home appliances as a package deal in the global market.