New Delhi: Japanese major Hitachi plans to invest Rs 4,700 crore in India to set up new manufacturing plants, acquisitions and strengthening collaboration with Indian companies by fiscal 2015.
Hiroaki Nakanishi President Hitachi said, “We expect to nearly triple our consolidated revenues to Rs 200 billion (Rs 20,000 crore) from the current Rs 67 billion (Rs 6,700 crore) by the fiscal year 2015. We will increase our employee strength from about 6,800 to 13,000 in this period.” He said that the company is eyeing acquisitions in social infrastructure and engineering services, but did not give any specific details.
Nakanishi was in India for the company’s first board meeting held outside Japan indicating the importance of the Indian market.
“Slowdown of economy is not only happening in India, it is a global issue. We have to manage business between this. We do not change the priority or investment decisions in the current scenario of the Indian economy,” he said though adding that the company is facing challenges such as differences between Union and State Government policies as well as slower pace of growth than the company’s expectations. The company, for instance, had to adjust output of auto components due to the slowdown in vehicle sales.
“We plan to use India as a base for expanding business into Africa and West Asia ,” he added. This will be largely for the construction machinery and the infrastructure systems.
Local production
The company will focus on expanding its businesses for local production for the domestic market through increasing localisation.
It will expand manufacturing and sales of power electronics products made by Hi-Rel Power Electronics and Hitachi NeST Control System besides promoting local production in its construction machinery business. Hitachi’s other plans for expansion include increasing local production of its industrial packaged air-conditioners and maintaining market share in high-end room air conditioners.
The company also plans to start a new auto components factory in Chennai besides automotive powder metal and brake factory in Neemrana.
It plans to strengthen partnership with Indian companies to expand business base in power systems such as expanding booking orders for thermal power generation systems by BGR Turbines and BGR Boilers, expand product line-up in infrastructure systems.
It also plans to accelerate expansion of storage systems and ATM as well as start up telecommunications and network system businesses through alliance with local partners besides manufacturing of electrical equipment and signal equipment for rail cars.
“We also plan to enhance the corporate function of the Hitachi group in India by expanding the R& D centre, strengthen development of research functions along with expansion of business divisions into India and initiate technology marketing research aimed at emerging markets and accelerate penetration of the Hitachi brand,” Nakanishi said.
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