Hitachi Hi-Rel Power Electronics Pvt Ltd a 60:40 joint venture between Japanese electronics major, Hitachi Ltd and Hi-Rel Electronics Pvt Ltd, an Ahmedabad-based power electronics products maker, is setting up a manufacturing facility of power equipment at Sanand near Ahmedabad.
The company has been allotted plot of 28,500 square meters (sqmt) in Sanand GIDC (phase-2), where it intends to produce power equipment such as medium-voltage inverter systems.
The plant is likely to be commissioned within a year's time, informed company officials. The move is likely to generate revenues to the tune of Rs 800 crore (approx. 14 billion Yen at the exchange rate of 1.71 Yen for a rupee) by the fiscal year 2016.
Meanwhile, the company is expanding its operations at its facility in Gandhinagar. "We are setting up new manufacturing facility at Sanand and expanding existing unit at Gandhinagar.
This will require an investment of about Rs 80 crore for fixed assets. New capacities will help us achieve Rs 700 crore to Rs 800 crore turnover in next five years," said Piyush Shah, MD, Hitachi Hi-Rel Power Electronics.
With new capacities going on stream, the market for products such as medium-voltage inverter systems, uninterrupted power supplies (UPS) and power conditioners for solar and wind power generation is likely to expand.
The company is aiming to corner about 15-20 per cent market share of India's total US $ 1 billion UPS market.
Meanwhile, the company would source raw material including metal panels, magnetic and other equipment from suppliers in Ahmedabad and Vadodara. Hitachi Ltd has recently made majority equity investment in Hi-Rel Electronics Pvt Ltd and is expecting to increase its business through joint-venture with Hi-Rel.
"We are looking to double our sales in India from 90 billion Yen in fiscal 2010 to around 200 billion Yen in fiscal 2012. India is an emerging market with established infrastructure, hence our investments in India would bring more business than other countries," said Ichiro Lino, MD, Hitachi India Pvt Ltd.
Hitachi group has about 20 companies operational in India with interest in segments like construction machinery, air conditioning equipment and appliances, thermal power business and IT systems respectively.