Hitting a sixer

07 January 2003

Ahmedabad: The year just gone by closed with a significant development for the air-conditioner industry.

In a very low-profile move, Hitachi Home & Life Solutions Inc, the $3.82-billion Japanese home appliances giant, picked up the entire 19.4-per cent stake in Amtrex Hitachi Appliances (AHA), the Ahmedabad-based Rs 239-crore air-conditioner company.

The development saw the exit of the Lalbhais from the AC segment and, very likely, also spelt the beginning of the end for the Amtrex brand of ACs.

While the Hitachi buyout of the Lalbhai-holding from the equal-stake joint venture (JV) was not totally unexpected, the almost hush-hush manner in which the deal was inked surprised many an industry-watcher. AHA officials attribute the unobtrusiveness of the event to the fact that requisite regulatory approvals are still pending.

The grand entry
Consequent to the Lalbhai exit, Hitachi's shareholding in the company will increase from 35.2 per cent to 54.6 per cent, making it the majority shareholder. The balance 45.4-per cent shares will remain with the public, financial institutions and banks.

“The development marks the entry of Hitachi into the Indian white goods and home appliances market in a big way,“ says a leading financial analyst. “Apart from strengthening its hold on the AC market, Hitachi is sure to bring in its other products in the consumer electronics and white goods sector.“