Panasonic to raise water pump output by 18% in Indonesia in FY 2021 over FY2018

10, Aug. 2019

President Director Tomonobu Otsu (R) of PT. Panasonic Manufacturing Indonesia, a subsidiary of leading Japanese multinational electronics firm Panasonic Corp., guides a director of its group arm at a factory in Jakarta on Aug. 8.
President Director Tomonobu Otsu (R) of PT. Panasonic Manufacturing Indonesia, a subsidiary of leading Japanese multinational electronics firm Panasonic Corp., guides a director of its group arm at a factory in Jakarta on Aug. 8.

JAKARTA, NNA - Panasonic Corp., a leading Japanese multinational electronics firm, will boost its monthly production of water pumps in Indonesia by 18 percent to 200,000 units in fiscal year 2021 from the fiscal 2018 level as it aims to expand the lineup and export market of these products.

The plan was announced by Panasonic’s subsidiary in Indonesia, PT. Panasonic Manufacturing Indonesia (PMI), in a Jakarta ceremony on Thursday to mark the production of a total of 30 million water pumps at the PMI factory since 1988.

PMI is Panasonic’s only global water pump production base, and it has been exporting water pumps to some eight countries in Southeast Asia and the Middle East. Water pumps account for over 25 percent of PMI’s sales.

Of about 1.7 million water pumps produced at the factory in 2018, about 300,00 units were exported with nearly 90 percent of them shipped to Vietnam, PMI officials said. The factory aims to boost its exports by increasing the product lineup and expanding the market to more than ten countries.

Demand for water pumps is high in Indonesia, where well water is essential in the absence of adequate public water infrastructure. PMI had a 53-percent share of the domestic water pump market last year, against the 40-plus percent for the local “Shimizu” brand, the officials said. Sharp Corp., a Japanese-Taiwanese electronics manufacturer, started marketing water pumps last year but its share is still limited.

In September, PMI will begin sales of booster pumps, which strengthen the pressure of water that comes from elevated water tanks. PMI expects booster pumps to be appreciated mainly in urban areas as people taking showers tend to prefer the pleasant feeling of higher water pressure.

PMI recorded sales of 22 billion yen ($207.6 million) in fiscal 2018 with its water pumps business accounting for about 6 billion yen, second in sales only to the air-conditioner division.

PMI’s cumulative output of water pumps, which started in 1988, topped 20 million units in 2014 and reached 30 million five years later in this April. PMI aims to add 10 million more by fiscal 2023.

“We will continue to make a social contribution by manufacturing and marketing water pumps to supply an ample quantity of safe water, which is essential for people’s life,” PIM President Director Tomonobu Otsu said.