Hitachi to start talks with Hi-Rel for biz alliance

Japanese group Hitachi will discuss business alliance, including investment opportunities, with Ahmedabad-based Hi-Rel Electronics, as part of efforts to bolster their power electronics business in India.

Both companies would hold discussions with a view to enter into a final agreement by the end of September 2011, Hitachi said today.

The Japanese major and Hi-Rel Electronics have agreed to open discussions regarding business alliance, "Hitachi's investment on Hi-Rel and creation of a new manufacturing facility".

"The aim of this move is to bolster both companies' power electronics businesses in India," Hitachi said in a statement.

Indian market for power electronics-related products is expected to grow, especially with expected increase in demand for inverter and uninterrupted power supplies (UPS) systems.

For Hitachi, India is a key market where demand for its products is expected to rise.

An alliance would also help Hitachi tap Hi-Rel Electronics' nationwide sales and service network in India, the statement noted.

Hitachi has expertise in medium and high-voltage control technologies and advanced manufacturing technologies, among others.

Hi-Rel Electronics is mainly into industrial-use UPS technologies and low-voltage and small- and medium-sized control technologies.

"Hitachi is strengthening the power electronics business as one of the Social Innovation Business and has supplied a large number of power electronics-related products in Japan and overseas," the statement said.

According to Hitachi India's website, it markets and sells a range of products, including power and industrial systems, air conditioning & refrigeration equipment.