New Delhi: Japanese consumer electronics major Panasonic is aiming for revenues of Rs 12,300 crore in India this fiscal, driven by its refrigerator and TV businesses. Panasonic India reported revenues of about Rs 10,500 crore in the previous financial year. The company also expects its B2B business to contribute almost half of its revenues by FY 2020-21 as it is expanding its presence in the segment.
“This financial year, we are looking at Rs 12,300 crore revenue overall. Last year we had closed around Rs 10,500 crore,” Panasonic India and South Asia President and CEO Manish Sharma told PTI. This includes Panasonic’s revenue from its step-down firm Anchor Electricals.
“Our intention is to grow for three years with a CAGR of 20 per cent and this year, we are looking for 30 per cent growth in TV,” he added.
“By FY 2020-21, we expect our B2B business to contribute half of our revenue,” Sharma said. Panasonic also expects its consumer business to be double in the next three years.
“Last year, we had Rs 7,800 crore from the consumer business (including Anchor) and we are looking it at Rs 9,100 crore this financial year,” said Sharma who is also vice president, Appliances Company, Panasonic Corporation.
“Last year, B2B was Rs 2,300 crore and this year it is expected to be Rs 3,200 crore,” he said. In the mobile phone market, where Panasonic is struggling, the company has decided to focus only on the niche segment.
“We are looking at Rs 800 crore this year and the strategy in mobile is to focus on niche segment of Rs 9,000 and above,” he said. In the TV segment, the company expects its 4K range of televisions to account for around 25 per cent share of sales this fiscal.
“This year we are looking at 1.2 million units of sales which is 11 to 12 per cent of value share. Market share is currently 9 per cent and next year, we are looking at 11 to 12 per cent,” he said.
“From less than one million units last year, we are looking up to 1.5 to 1.6 million unit in next three years” Sharma said. Panasonic has yesterday introduced new models of OLED and 4K TVs here to strengthen its presence in the segment.
The TV market in India is estimated to be around 12.5 million units. It is growing at around 10 per cent every year and is expected to touch 14 million units in 2018, he added.
India’s e-commerce curbs could hit online sales by USD 46 bn by 2022: report
New Delhi: India’s new foreign investment restrictions for its e-commerce sector, which includes giants such as Amazon.com Inc and Walmart-owned Flipkart, could reduce online sales by $46 billion by 2022, according to a draft analysis from global consultants PwC seen by Reuters.
Under the changes, e-commerce firms in India will from Feb 1 not be able to sell products via companies in which they have an equity interest or push sellers to sell exclusively on their platforms.
Announced in December, just months before a general election due by May this year, the rules were seen as an attempt by Prime Minister Narendra Modi’s government to appease millions of small traders and shopkeepers, who form a key voter base and say their businesses have been threatened by global online retailers.
Industry sources told Reuters the policy would delay or derail some investment plans and push companies such as Amazon and Flipkart to create new, more complex business structures.
In a private analysis PwC conducted based on estimates provided by the industry and using publicly available information, it forecast that online retail sales growth, tax collections and job creation would be severely hit if companies changed their business models to comply with the new policy.
The draft analysis has not been made public. PwC India, in response to Reuters’ questions, said it “does not endorse any of these assumptions or conclusions, nor have we conducted any independent study on this”.
“As a matter of policy, we do not comment on company specific issues,” PwC said.
The analysis produced by PwC showed that the gross-merchandise value of goods sold online could reduce by $800 million from expectations in the current fiscal year that ends in March, a document seen by Reuters showed. Then, the sales would dip drastically below previous forecasts, lopping off $45.2 billion in the next three years, the data showed.
To be sure, sales would still be growing, but at a less robust rate than envisaged before the policy change.
Online retailers often use gross merchandise value, or GMV, based on monthly online sales as a measurement of performance, as they typically make revenue from the commissions they get from sellers.
The analysis also said that by March 2022 the Indian policy could lead to the creation of 1.1 million fewer jobs than may have been previously expected and lead to a reduction in taxes collected of $6 billion.
Amazon and Flipkart have both sought an extension of the Feb 1 deadline, but a source at India’s commerce ministry told Reuters the government was unlikely to agree.
Amazon said in a statement it remains “committed to be compliant to all local laws” but has asked the government for an extension of four months.
Flipkart has sought a six-month extension, a source said. Though the company did not respond to Reuters questions, it told India’s Economic Times newspaper that it believed “an extension is appropriate” to ensure that all elements of the policy were clarified.
Flipkart India raises Rs 1,431 crore from parent firm
New Delhi: Flipkart India, the wholesale arm of Walmart-owned e-commerce company Flipkart, has received about Rs 1,431 crore from its Singapore-based parent, according to documents filed with the Corporate Affairs Ministry.
The parent entity was issued 4.86 lakh shares in Flipkart India at a price of about Rs 29,400 per share, the documents showed. Flipkart had invested Rs 2,190 crore in Flipkart India in December last year.
The latest fund infusion comes at a time when Flipkart faces challenges on the regulatory front in the form of new policy norms for e-commerce firms with foreign investment.
The new rules — effective from February 1 — bar online marketplaces with foreign investments from selling products of the companies where they hold stakes, and ban exclusive marketing arrangements.
Another provision states that the inventory of a vendor will be seen as controlled by a marketplace, if over 25 per cent of the vendor’s purchases are from the marketplace entity, including the latter’s wholesale unit. Both Amazon and Flipkart have approached the government seeking extension on the deadline.
Income Tax return processing time to reduce from 63 days to just 1 day
Mumbai:The Union Cabinet approved an integrated income-tax e-filing and centralised processing centre (CPC) portal, which will reduce the return processing time from 63 days to just one day. The new portal is also expected to process the refunds within one day of filing of tax returns, in huge relief for taxpayers. However, one will have to wait for 18 months to see its launch.
“Earlier, taxpayers would face troubles because of delay in refund processing and the CBDT used to spend a lot of money every year as interest on pending refunds, which will be history now,” Union minister Piyush Goyal told reporters after the Cabinet meeting here.
Last month, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra had said a simplified return form and process would be put in place soon in which the department would process the self-declaration made by the taxpayer. The new Rs 4,241-crore project will incorporate these changes.
“This is a laudable initiative and will go a long way to ease tax compliance, and enhanced experience for taxpayers. However, the real success of this will be measured when it brings ease to a common man and is accompanied by changes in the culture of the tax authorities at the operational level,” said Neeru Ahuja, partner, Deloitte India.
Currently, the e-filing portal and the CPC work separately. While e-filing is being managed by Tata Consultancy Services (TCS), the CPC is run by Infosys.
In the bids invited by the government, Infosys emerged as the lowest bidder and it would develop the ITR-CPC 2.0 project in 18 months from now, Goyal said.
Under the new system, Infosys will handle end-to-end solution — from e-filing to return assessment to refund processing. The CBDT and Infosys would work in a revenue-sharing model, sources in the know said.
Goyal said ramping up scrutiny was not the mandate of the new portal. Currently, about 0.3 per cent of the I-T returns are scrutinised, he said. The system intends to resolve taxpayer grievances as well as tax demands from the CBDT faster and equitably, he said.
“The decision will ensure horizontal equity by processing returns filed by all categories of taxpayers across the country in a consistent, uniform, rule driven, identity blind manner. This will assure fairness in tax treatment to every taxpayer irrespective of their status,” a government release said.
But even under the new ecosystem, only those applications which are clean would have the chance of getting processed in a day, sources said.
About 23 crore I-T returns have been processed, along with Rs 2.62 trillion worth of refunds, till September 2018 cumulatively. Of this, refunds worth Rs 1.83 trillion have been processed in 2018-19, said Goyal.