Forbes reports that Matsushita Electric Works, a subsidiary of Matsushita Electric Industrial Co. had bought 80% of leading Indian electrical equipment maker Anchor from the Mumbai-based Shah family for $480 million. The deal is important for several reasons:
1. Anchor manufactures simple products like electric switches, though Matsushita markets electrical wiring and related items in Japan, how it fares in India selling such a low unit products remain to be seen.
2. The products Anchor makes in India were once reserved for small scale industries and Anchor is credited with creating brands in an otherwise commodity market.
3. Will Matsushita ever be able to sell these low unit price products under its own name? Despite its name and resources , success in India eluded this Japanese top of the mind recall brand owner. National and Panasonic once dominated Indian grey market which disappeared with liberalisation and globalisation.
4. The deal is indicative of strengths of small scale industries that focused on design innovations and may be despair of Japanese firms who lost the race to Koreans in India .
1. Anchor manufactures simple products like electric switches, though Matsushita markets electrical wiring and related items in Japan, how it fares in India selling such a low unit products remain to be seen.
2. The products Anchor makes in India were once reserved for small scale industries and Anchor is credited with creating brands in an otherwise commodity market.
3. Will Matsushita ever be able to sell these low unit price products under its own name? Despite its name and resources , success in India eluded this Japanese top of the mind recall brand owner. National and Panasonic once dominated Indian grey market which disappeared with liberalisation and globalisation.
4. The deal is indicative of strengths of small scale industries that focused on design innovations and may be despair of Japanese firms who lost the race to Koreans in India .
No comments:
Post a Comment