Hitachi to double India turnover to Rs12,000 crore

Japanese consumer durables giant Hitachi aims to double its turnover in India to Rs12,000 crore over the next two to three years, even as it plans to upgrade its presence in the country, which will emerge as its fifth regional headquarters.

The Japanese major has identified India as one of its key management areas outside Japan. At present, China, Southeast Asia, Europe and the Americas feature among the key management areas for the company. Consequently, Hitachi India has been re-positioned as an independent management area. The India unit earlier used to report to Hitachi Singapore, but under the new arrangement, it will report directly to Japan.

The move is part of Hitachi's 'new gloablisation plan,' which include measures to acccelerate growth strategy of the 'social innovation business,' which is made up of social infrastructure supported by highly reliable and efficient information and communications technology.

''India is demonstrating dramatic growth and we are confident that this new structure will support the growth momentum and enable us to respond more effectively to the unique local customers' needs in India,'' remarked Ichiro Iino, managing director, Hitachi India Pvt Ltd. ''Hitachi India's responsibilities and authority in the context of business operations will be expanded, and the company's staff will be increased, mainly in the corporate division in order to support the smooth roll-out of business at Hitachi group companies - for example, by sharing accumulated expertise among them.''
 
The company is also eager to acquire other firms in a bid ''to grab a bigger market share in a short span of time.'' Besides growing organically, it would also look at the inorganic route by acquiring other firms.

Hitachi India is currently present in power systems, transportation, industrial and social infrastructure systems, home appliances and information technology. The company will be investing about 50 billioin yen in two factories to make turbines and boilers.

Earlier this year, Hitachi Research Institute opened an 'economy and industry centre' in Delhi. The company now plans to set up an R&D centre focussed on information technology in Bangalore. It also plans to set up a desalination unit in Gujarat to supply water to industrial parks.