Cross Value Innovation Final Case

Niche IIM Ahmedabad Page 1

INTRODUCTION Panasonic Corporation, based in Osaka, Japan, is a worldwide

leader in the development and engineering of electronic

technologies and solutions for customers. Since its founding in

1918, the company has expanded globally and now operates

around 500 consolidated companies worldwide, recording

consolidated net sales of more than 65 billion USD for the year

ended March 31, 2014. Committed to pursuing new value

through innovation across divisional lines, the company strives

to create a better life and a better world for its customers.

Panasonic India currently has a portfolio of 6 companies in India

with a dedicated workforce of about 13,000 in India spread

around 5 manufacturing bases. Recently, Panasonic India has

also been designated as regional hub to drive growth. India is

the sixth strategic region designated by Panasonic which will

take care of its markets in SAARC nations, Middle East Asia and

Africa.

For Panasonic India, one of the most important and thrust area

is ENERGY STORAGE BUSINESS, representing products like

LITHIUM ION , VRLA & SOLAR Modules, We started Li-Ion

Cell Production since 1994 and after acquisition of Sanyo, we

are World Leader in Li-Ion Technology especially for

Automotive, Telecom & Infrastructure Business with lowest

failure rate and best field performance accumulated data till date

and also as far SOLAR Products are concerned - So we

represent , one of the WORLD's Highest Conversion Efficiency

Panels HIT - which is a patented Technology of Panasonic.

ENERGY STORAGE (LI-ION) There are Several Success Stories which have been created in

INDIA for Energy Storage, especially in TELECOM SECTOR,

one of the recent Business Success is - Power backup Solution

for 4G network in INDIA using lithium Ion Energy Storage

Products, We have successfully implemented more than 12,000

Sites in India and several thousands are in progress.

Panasonic India Introduced a long lasting & Cost Effective

Intelligent, highly Customizable Lithium Ion Energy Storage

Solutions for the Telecom Industry with performance oriented

Cross Value Innovation Final Case

Niche IIM Ahmedabad Page 2

approach in terms of Total Cost of Ownership, ROI, and other

Parameters

The Solution has technical advantages in terms of power to

weight to volume ratio, absence of pollutants like acid and lead

thus turning to Panasonic Silver Bullet for Indian Telecom

Industry and will change the way the industry operates.

LI-ION TECHNOLOGY Lithium-ion batteries are incredibly popular these days. The

technology has stood the test of time. You can find them in

laptops, PDAs, cell phones and iPods. They're so common

because they're some of the most energetic rechargeable

batteries available.

They're generally much lighter than other types of

rechargeable batteries of the same size. The electrodes

of a lithium-ion battery are made of lightweight lithium and

carbon. Lithium is also a highly reactive element,

meaning that a lot of energy can be stored in its atomic

bonds. This translates into a very high energy density for

lithium-ion batteries. Here is a way to get a perspective

on the energy density. A typical lithium-ion battery can

store 150 watt-hours of electricity in 1 kilogram of battery.

A NiMH (nickel-metal hydride) battery pack can store

perhaps 100 watt-hours per kilogram, although 60 to 70

watt-hours might be more typical. A lead-acid battery can

store only 25 watt-hours per kilogram. Using lead-acid

technology, it takes 6 kilograms to store the same amount

of energy that a 1 kilogram lithium-ion battery can handle.

They hold their charge. A lithium-ion battery pack loses

only about 5 percent of its charge per month, compared

to a 20 percent loss per month for NiMH batteries.

They have no memory effect, which means that you do

not have to completely discharge them before recharging,

as with some other battery chemistries.

Lithium-ion batteries can handle hundreds of

charge/discharge cycles.

Cross Value Innovation Final Case

Niche IIM Ahmedabad Page 3

TELECOM MARKET The telecom market is very challenging in terms of

implementation of Energy Storages. In areas such as UP, Bihar,

Jharkhand and some parts of Madhya Pradesh, The diesel

mafia creates hurdles for smooth operations. Thus the telecom

storage business growth is slower than the expected market

growth.

NEW APPLICATIONS Now, Panasonic is also aiming on small and critical applications

for OEM business of Li-ion/Li-polymer storages. New areas will

be from applications such as POS machines, handheld medical

devices, handheld power tools, E-bikes, garden tools, toys,

mobile batteries, power banks, wearable device etc. The new

demand will be catered by local assembly in India.

DELIVERABLES Teams need to conduct a study and determine the demand of

Li-ion storage in small applications

1) Identify applications

2) Calculate the market size for these applications

3) Categorise applications: manufactured in India vs import

trading *Panasonic will only focus on applications that have substantial manufacturing in India; because imports

4) Identify the top three most potential areas

5) Specifications of Battery pack for these applications

(capacity, size, li-ion/li-polymer etc.)

6) Design the Go-to-market strategy

Max 15 slide presentation: Annexures can be added extra.

0%

20%

40%

60%

80%

100%

2012 2013 2014

*Estimated figures - to give industry overview

Market Share - Telecom Industry

Others

D-Company

C-Company

B-Company

A-Company

Panasonic