Mumbai: Hitachi Home & Life Solutions () (HHLS), the $3.82-billion home appliance company and a fully-owned subsidiary of Japanese major Hitachi, has acquired the share holding of its joint venture partner, the Lalbhai group, in Amtrex Hitachi Appliances, the Ahmedabad-based Rs 2,548 million (sales for fiscal 30 September 2002) air-conditioner company.

Hitachi has acquired the entire 19.4-per cent stake of the Lalbhai group in Amtrex Hitachi at a price of Rs 41.64, taking its shareholding from 35.2 per cent to 54.6 per cent, and becoming the majority shareholder.

The balance 45.4-per cent shares will remain with the public, financial institutions and banks. This being an inter-se transfer of shares among co-promoters and foreign collaborators, the provisions relating to the open offer under the takeover code do not apply.

Subsequent to the transaction, the Lalbhai group nominees (chairman Sanjay Lalbhai and managing director Naishadh Parikh) resigned from the board of directors of Amtrex Hitachi. At the same time, Hitachi inducted Shinya Yoshinaga as the new chairman and Shoji Tsubokuta as the new managing director. The board will be expanded and further strengthened in due course.

Commenting after taking over as the chairman, Yoshinaga says: ''Hitachi places India as a significant and high-potential market for air-conditioners, and has therefore made a decision to expand this business in India. At this juncture, we would like to express our appreciation to the Lalbhai group for the cooperation extended by them until now, and also look forward to their continued support in future.''

To augment the financial resources of the company for its ongoing business needs, the Amtrex Hitachi board also approved issue of rights shares in the ratio of 3:5 (three shares for every five held) at a price of Rs 31 per equity share of Rs 10 paid-up value (premium of Rs 21 per share).

Subject to approval by the shareholders, the company proposes to issue 8.8 million shares aggregating Rs 272.84 million to the existing shareholders. The proposed rights issue will increase the company's equity from the current Rs 146.69 million to Rs 234.70 million.

Amtrex Hitachi is engaged in manufacturing and sales of the full range of air-conditioners in India. Hitachi has provided technology support for air-conditioners since 1990 through a series of collaboration arrangements. After its equity participation in 1999, it had reinforced Amtrex Hitachi with technical and brand support, including deputing Japanese expatriates in design, manufacturing and quality assurance.

With highly innovative and constantly evolving products like the Logicool i range, Amtrex Hitachi has consistently outperformed the air-conditioner industry growth in the last two years, largely due to its technology driven marketing strategy. The success of the Logicool i range has helped the company maintain this trend and achieve an impressive volume growth of more than 40 per cent during the summer of 2002.

Amtrex Hitachi, with a marketshare of 14 per cent, has emerged among the top three players and one of the fastest-growing companies in the high-growth RAC market in India.

Hitachi Home Life Solutions, headquartered in Tokyo, is a leading home appliances company, which was separated from Hitachi Ltd on 1 April 2002. Its consolidated sales as on 31 March 2002 totalled $3.82 billion. The company develops, manufactures and sells home appliances such as room air-conditioners, refrigerators, and washing machines and also markets consumer electronics.