Enhancing production capacity even during global slowdown by focusing
on commercial AC’s
Hitachi Home & Life Solutions (India) Ltd (HHLI), a subsidiary of Hitachi Appliance Inc, Japan, inaugurated its new air-conditioner manufacturing plant at Kadi (Gujarat) near Ahmedabad. The Chief Minister of Gujarat, Mr. Narendra Modi, inaugurated the plant today morning.
This facility of Hitachi is the largest AC manufacturing facility in India and is the outcome of the Vibrant Gujarat Global Investors' Summit 2009 where HHLI signed an MOU to invest in Gujarat and is now amongst the first ones to accomplish the plant.
The new manufacturing facility is situated adjacent to the company’s current plant at Kadi, 40 km. from Ahmedabad. The new plant would manufacture commercial air-conditioners including large air-conditioner Chiller plants, Ductable air-conditioners and Telecom Airconditioners. Currently Hitachi Chillers are being imported from Hitachi’s factories outside India.
The new facility is spread on a plot of 85000 Sq. Mtr. with approximately 35000 Sq. Mtr. of Industrial shed, built in a record time of only 7 months. The total investment amounted to approx Rs. 50 cr. The plant is state of art and equipped with advanced machinery and testing labs. With its new plant the production capacity will increase to 4.0 lakh units per annum and company aims at minimum 10% increase in turnover.
In the financial year 2008-2009 HHLI had a turnover of Rs. 520 crore. It has two production units in India, Kadi,Gujarat & Jammu. Company's manufacturing facilities in India are among the ten Hitachi air-conditioner facilities worldwide. The total installed capacity is 250,000 units in a year.
Mr. Shinichi Iizuka, Managing Director says “Today, the Air Conditioning industry in India is witnessing increased expectations by the customers. Technology, designs, cooling capacity, energy efficiency & Service levels are seeing new highs. Our global experience helps us marry best of international standards and local needs to have excellence in products and services. Industry is progressing from premium product image to a diversified market due to changes in lifestyle and rapid economic growth.
Present on the occasion, Mr. Amit Doshi, Director, Corporate Affairs, HHLI shared "HHLI has recognized consumer behavioral changes and is now directing all the activities to meet their demands and create a distinctive Hitachi brand image. Last year when we took the decision to invest in a new manufacturing facility, the commercial air-conditioner market was de-growing due to global economic slowdown, but we have always believed in the Indian market and want to serve it with products made in India and more importantly, made for India, hence we will continue investing in expanding our manufacturing base in India."
HHLI operates in mass premium segment. It currently holds 7 % market share in room air-conditioner segment however it is No. 1 in premium segment category. In ductable commercial air-conditioner HHLI has 17% market share and in telecom tower air-conditioners category it enjoys leadership post ion with 28% market share.
Hitachi was the first Japanese company to set up any manufacturing unit in India and is now the only company who is expanding its production facilities.
Hitachi is celebrating 25th year of cooling India and over the last year it has been able to achieve a significant growth. With encouraging growth prospects in Air Conditioner market and increasing demand of quality products, Hitachi Home & Life Solutions (India) Ltd. planned this investment in new manufacturing facility to move closer to its growing customer base, even during global economic slowdown.
2010 will mark a significant milestone in Hitachi's worldwide history as centennial, 100 years of trust & appreciation.
