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Hitachi inaugurates largest AC plant in Gujarat

Hitachi Home & Life Solutions (India) Ltd (HHLI), a subsidiary of Hitachi Appliance Inc, Japan, has yesterday inaugurated its new air-conditioner manufacturing plant at Kadi (Gujarat) near Ahmedabad. The Chief Minister of Gujarat, Narendra Modi, inaugurated the plant.
This facility of Hitachi is the largest AC manufacturing facility in India under a single shed 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 Air conditioners. Currently Hitachi Chillers are being imported from Hitachi’s factories outside India.
The new facility is spread on a plot of 85000 Sq m with approximately 35000 Sq m of industrial shed, built in a record time of only 7 ½ months. The total investment amounted to approx Rs50 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 . With this investment the company aims at 10% increase in turnover at the minimum level. In the FY 2008-2009, HHLI had a turnover of Rs520 crore. Hitachi has ten production units worldwide; two are located in India. Shinichi Iizuka, MD, said: “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. Industry is progressing from premium product image to a diversified market due to changes in lifestyle and rapid economic growth."
“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,” added Amit Doshi, director, corporate affairs, HHLI.
HHLI operates in mass premium segment. It currently holds 7% market share in room air-conditioner segment however it is the leader in the premium segment category. In ductable commercial air-conditioner HHLI has 17% market share and in telecom tower air-conditioners category it enjoys leadership postion with 28% market share. Hitachi was the first Japanese company to set up any manufacturing unit of Air Conditioners in India and is now the first Japanese Air Conditioning major company who has expanded its production facilities.

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