Panasonic Appliances India’s minority shareholders blame promoter for mess

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Sajan C Kumar: Chennai, Nov 17 2012, 02:57 IST

The minority shareholders of Panasonic Appliances India Company have slammed the foreign promoter, Panasonic Corporation, for the sorry state of affairs of the company. At the recently held annual general body meeting, the shareholders raised the banner of protest against what they called as the total mismanagement of affairs, plunging the company into losses. The shareholders also criticised the functioning of the current managing director, H Aso, who represents the Panasonic Corporation.

Demanding the ouster of Aso, the shareholders threatened to move Sebi and the Company Law Board to get their grievances addressed and demanded that shares held by them be bought back by the promoters, if the company wants to run the show without taking into account the minority shareholders' interests.

The shareholders also demanded scrapping of payment of royalty to Panasonic. They also decried the shifting of imported products business to Panasonic India. Japan electronic major Panasonic Corporation has close to 56% stake in Panasonic Appliances India Company, the joint venture company with Indian partner Obul Reddy Group.

The company which posted a loss of close to R13 crore last fiscal, however, brushed aside the allegations and attributed the loss to the market conditions. The reduction in selling price drastically to take on Chinese products, frequent strike and bandhs due to Telangana agitation in the peak festival season that affected the Andhra Pradesh market , the major market of the cooker manufactured by the company were the main reasons for posting losses, according to the company.

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