Hitachi plans to turn around Indian unit this year

By siliconindia   |   Friday, 07 March 2003, 20:30 IST
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NEW DELHI: Japanese major Hitachi plans to turn around the ailing Indian subsidiary it has recently acquired from the Lalbhais by containing costs, hiking sales and through new product launches including refrigerators this year. After Hitachi acquired majority control in Amtrex Hitachi Appliances, the company's name has been changed to Hitachi Home & Life Solutions (India) Limited, and it is eyeing 20 per cent sales growth this year to touch 1.3 lakh units, managing director, S Tsubokuta told newspersons. "We expect the Rs 20 crore loss posted in 2002-03 to be wiped out this year. This will be done by cutting costs including variable, material and labour costs and by improved marketing initiatives," he said, adding the company has hiked its advertising budget this year by about 20 per cent to Rs 10 crore. He said at present only 25 per cent of the company's manufacturing capacity is being utilised, adding Hitachi is planning to commission a new manufacturing plant at Jammu next quarter with initial capacity of 50,000 units. "At present we are producing from Silvassa but the Jammu plant should be commissioned next quarter and eventually we plan to shift all manufacturing to Jammu," he said. "We plan to launch high-end frost-free refrigerators in India this year. There will be five models initially and all of these would be CBU imports from the parent company," he added. A wholly-owned subsidiary of Japan's Hitachi Home & Life Solutions Inc, the Indian company is 54.6 per cent owned by the Japanese major while the remaining equity rests with the public. Tsubokuta said a Rs 27 crore rights issue is planned for June this year and that the proceeds of this issue will be invested in the Indian operations. The company claims 14 per cent share of the Indian air conditioner market at present.