Hitachi has positioned India as one of the most important regions in its global strategy; for example, in December 2012, a board meeting was held in India, marking the first time for Hitachi to hold a Board meeting outside of Japan since its establishment.
In conjunction with that first overseas board meeting, the company announced its “India Business Strategy 2015,” which focuses on plans for total investments of 70 billion yen in India by FY2015 and an increase in consolidated revenues to 300 billion yen in FY2015, which is about 3 times the level in FY2011.
Since the announcement of the “India Business Strategy 2015,” Hitachi has been steadily promoting local production for local consumption through increased localization; for example, with the expansion of manufacturing and sales of power electronics products and the startup of a new automotive powder metallurgy and friction materials plant, as well as strengthening construction machinery R&D in India.
In terms of promoting global business rollout employing India as a base, Hitachi will start full-scale exports of construction machinery products to Africa and the Middle East and volume exports of power electronics products to Middle East and Asian markets respectively starting from FY2014. Hitachi has also decided to acquire Prizm Payment Services Pvt Ltd., a major provider of settlement services for Indian financial institutions.
With this acquisition, Hitachi will establish a firm customer base among major financial institutions, and will utilize its expertise in settlement systems and other solutions for customers in the financial industry, as part of efforts to bolster the IT service business.
Additionally, Hitachi will continue to strengthen its management base in India in order to support business expansion. Specific measures include the establishment of three new local bases of operation; promoting R&D activities with close ties to the regional market; building a human resource management system; and executing the Hitachi Smart Transformation Project, which is a cost structure reform project.