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The $112-billion Japanese giant Hitachi Ltd on Wednesday announced closing in on a transaction enabling it to make a majority equity investment in the Rs 111-crore Gujarat-based Hi-Rel Electronics Pvt Ltd, a move that will expand the two companies' power electronics business in India.
The new company, christened as Hitachi Hi-Rel Electronics Pvt Ltd, a 60:40 JV, will invest nearly Rs 60 crore at Sanand to establish a factory for the manufacture of medium-voltage inverters by the end of 2012, Mr Piyush Shah, Managing Director, told reporters here. The move is expected to drive expansion in the power electronics business in the country — the new company would generate around Rs 8,000 crore by March 2016, said Mr Ichiro Lino, Managing Director, Hitachi India Pvt Ltd.
The Rs 9,000 crore Indian power electronics market is growing at 15-20 per cent at present and the company is targeting 15-20 per cent of this market in the next five years, they added.
Hitachi, which began exporting fans to India in 1930, started cooperation with Hi-Rel, based at Gandhinagar in Gujarat, in 2009, which led to their agreement on equity investment.
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