(MENAFN- Khaleej Times) Panasonic corporation is eyeing ¥50 billion new business opportunities following the successful launch of its Dh2.4 billion (¥60 billion) smart city initiative in Japan's Kanagawa Prefecture last week.
The Osaka-headquartered company made forays into the smart city segment by launching 120 residential housing units in first phase of Fujisawa Sustainable Smart Town, or FSST, near Tokyo. The inaugural ceremony also marked the 120th birth centenary of Kounosuke Matsushita, who founded Panasonic in Osaka in 1918.
The Panasonic joint venture project will have 600 town houses and 400 condominiums to accommodate approximately 3,000 people by 2018. The price of each unit - ranging from 120 to 130sqm - ranges between ¥50 million to ¥60 million.
"About 600 smart cities are under progress across the globe and we see enormous business opportunities in this segment. Panasonic is ready to extend its successful FSST business model to international markets including the Middle East," Satoshi Takeyasu, Panasonic Corporation's executive officer and director of the grou-wide brand communication division, told Khaleej Times.
The forward-looking town is built on a 19-hectare plot that once hosted a Panasonic factory for televisions and refrigerators. The Western-style houses, each with rooftop solar panels, are managed by newly-established Fujisawa SST Management Company that will supervise the 100-year joint venture project. It has already built 120 two-storey detached units, of which 100 are occupied by owners. A further 400 condominium units will be launched in 2016.
The consumer electronics giant's smart city business model is in line with the similar initiative launched by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in March. Shaikh Mohammed announced his plan to transform Dubai into a smart city under which 1,000 government services will go smart in the next three years. The strategy will have six key pillars and 100 initiatives on transport, communications, infrastructure, electricity, economic services and urban planning - also the key features being covered in the FSST.
Panasonic's new initiative may also find a potential growth market in India as Prime Minister Narendra Modi also announced a major initiative in August to set up 100 smart cities in the country. Although details of the project are still yet to come out, seven smart cities are being planned under the 1,483km Delhi-Mumbai Industrial Corridor.
"The FSST will be one of our future growth models and it will be implemented initially in the company's strong markets," Takeyasu said, adding that the Panasonic had already launched property projects in Dalian, China, and in Iskandar Malaysia, Johor.
Panasonic, which heads a consortium of 18 companies for the FSST, initially expects ¥27 billion revenues by 2018 when all the houses are sold. It expects to further improve the revenues at ¥40 billion in a 30-year period and plans three more such towns in Osaka and near Fujisawa. With its core facility supporting sustainable development of the town and its community now coming into operation, the FSST is evolving into a new stage where the town is nurtured to grow in full-scale into an eco and smart town that puts a high priority on the residents' lifestyles.
Masahiro Ido, executive officer for Panasonic's business solution division who attended the inaugural ceremony for the FSST, said the company's flagship smart city project will generate about 30 per cent of its power requirements from solar energy and reduce carbon emissions by 70 per cent compared to 1990 standards. It will also cut water usage by 30 per cent compared to 2006 levels and will also share services such as electric cars and electric-powered bicycles with residents.
The FSST was adopted as a model project for promoting carbon dioxide reduction in'housing and buildings by the ministry of land, infrastructure, transport and tourism, according to Panasonic officials.
As the town opens, it will develop for 30 years, mature for 30 years, and then further evolve for 30 years. The FSST sets a 100-year vision, time for three family generations to lead a prosperous life. By combining fixed and variable elements, the FSST will be established as a sustainable town, where eco and smart lifestyles will continue to flourish.
"This flagship smart city project is going to exist for 100 years as a sustainable town," Ido said, adding that the Panasonic will promote this business model in international markets.
"We see ¥50 billion new business opportunities in international markets in coming years due to smart cities initiatives launched by various countries across the world," he said.
Ido said Panasonic has partners to launch more smart city projects in the country and announcement will be made by next year.
FSST Management president Tomohiko Miyahara said the success of the flagship town would enable Panasonic to promote its business-to-business (B2B) strategy as well as to showcase its capabilities and expand its property developments to regional and international markets.
"We have already forayed into property developments in Taiwan and Malaysia," he said adding that Panasonic is ready for B2B partnerships across the globe.
PanaHome Corp, the real estate arm of consumer electronics giant, is a leading name in Japan's property development business since its establishment in 1963. In overseas markets, it has established presence in Malaysiaand Taiwan. PanaHome Malaysia has undertaken to build 30 homes in Kuantan, Pahang, and also has plans to launch developments in Iskandar.
In Taiwan, interior design and decorating firm PanaHome Taiwan Residence Company was established in 2010 and one year later it obtained a local construction license to set up housing company PanaHome Taiwan Company.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.