Panasonic Holdings Corp. wants to invest 600 billion yen ($4.9 billion) in sectors including automotive batteries and supply chain software, which it regards as critical to its future growth.
Panasonic outlines medium-term management goals
Over the next three years, the Osaka-based company aims to produce 1.5 billion yen in operational profits.
Panasonic, a Japanese electronics business that formerly ranked first in global consumer electronics sales, is seeking fresh growth prospects.
In an interview, Kazuhiro Tsuga, the company’s CEO, said, “We aim to spend two years refining and perfecting the remaining Panasonic companies.” This would enable us to increase the company’s cash generation efficiency, freeing up hundreds of billions of yen to invest in new ideas, such as mergers and acquisitions. “
Panasonic’s EV battery industry is one such area of expansion. The business is in the process of securing a site in the United States to build next-generation 4680 batteries for Tesla Inc. and maybe other manufacturers.
Panasonic sees potential in supply chain software as well. The corporation paid $7.1 billion for artificial intelligence software vendor Blue Yonder last year, making it one of the biggest purchases in the company’s history.
The goal of the Blue Yonder purchase is to merge Blue Yonder software with Panasonic hardware like cameras and sensors in order to provide clients with better profit solutions.