Wednesday, December 18, 2013: Hitachi has said that it will be investing another Rs 47 billion in India by the year 2016. This additional investment will be made for expanding capacities across business verticals. These include construction machinery, information technology (IT) services, transport and power equipment. The company announced that this is part of a bigger strategy to expand its global footprint.
This expansion is part of the plan to triple the sales of Hitachi India Ltd to Rs 200 billion and to raise local headcount by 5,600 over the period. “The expansion will comprise providing services in the construction machinery and IT segments, apart from engaging in supplying urban transport equipment for the metro trains or monorails here,” said Junzo Nakajima, executive vice-president for the Asia-Pacific told Business Standard.
Since India currently accounts for only one per cent, that is Rs 67 billion of Hitachi’s global sales, this plan will hike the local sales to 3 per cent of the overall figure by 2016. “Our global revenues would rise from ¥9 trillion to over ¥10 trillion at the end of the period,” added Nakajima.
The company will also be reviewing the capacity of the power manufacturing joint facility it is setting up with BGR Energy Systems in order to align it with market requirement. Ichiro Iino, MD, Hitachi India said, “Hitachi is looking up to this JV with great hopes of the power sector reviving to its thrust levels.” Reportedly, the company is seriously considering to supply nuclear power plants in India, which will be part of another JV with US-based GE.
Iino shared that they are in talks with Delhi Metro Rail Corporation and the Delhi government for supplying metro coaches and monorail systems.
There are also plans to bid for supplying railway signalling systems, on the Dedicated Freight Corridor project that aims to connect Delhi with Mumbai and Kolkata via an only-cargo rail network.
