Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.
December 3 , 2007
Tokyo, December 3, 2007 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced plans to establish an India Business Support Center in Delhi on December 1 this year in a move that targets business expansion in India. The India Business Support Center is being established with the aim of helping Hitachi Group companies enter the Indian market and deal with business practices, the tax system and regulatory environment, and to support air conditioning systems, construction machinery and other group businesses already operating in the country. The Hitachi Group aims to generate revenues of ¥200 billion* in fiscal 2010, the year ending March 31, 2011, in the fast-growing Indian market by actively expanding businesses there going forward.
India's economy grew by 8.6% on average in terms of GDP from 2003 to 2006, driven by the booming outsourcing industry, buoyant capital investment in the manufacturing sector, most notably in the chemicals, pharmaceuticals and automotive industries, and strong investment in road, airport construction and other infrastructure projects. With personal consumption also growing due to improved employment and income environments, high growth is tipped to continue. In doing business in India, companies may face various issues, ranging from understanding differing business practices, the tax system and regulatory environment to labor management and logistics infrastructure. The goal in establishing the India Business Support Center is to help Hitachi Group companies looking to enter the Indian market to deal with these issues and get their businesses up and running smoothly in a short space of time. Another aim is to realize more efficient management by establishing a common group strategy in respect of branding, human resources, finance and other operational aspects. The India Business Support Center will become the core for the provision of shared services within the group in the region, including for group companies that are already conducting business in India.
The Hitachi Group established a representative office in India in 1954. In the ensuing years, it has delivered many social infrastructure systems, from steam locomotives to Indian Railways. Since late 1990, the Hitachi Group has been conducting businesses locally in such fields as room air conditioners and construction machinery. In recent years, the group has also forged greater collaboration with Indian software development vendors and strengthened cooperative ties with local companies in software development. Moreover, Hitachi began an elevator and escalator business in October this year in India, one example of active moves to enter new businesses in the country.
In August 2006, Hitachi appointed a Chief Executive for Asia, who is charged with formulating the business strategy for Asia, leveraging group synergies to develop new businesses and strengthening ties with important customers. Activities are ongoing under the business strategy for Asia which positions expansion of business in India as one of the most important themes. In April this year, Hitachi also established the Hitachi Group India Strategy Council, which under the leadership of the company's president has endeavored to strengthen the entire group's business presence in India.
Looking ahead, the Hitachi Group will strive to capture group synergies through the India Business Support Center. By doing so, the group will contribute to the development of Indian society, chiefly in the businesses related to social, industrial, life and information infrastructure systems and components and materials thereof, including power and industrial systems, construction machinery, elevators and escalators, air conditioners and data storage � all areas where the group excels. Another goal is to generate revenues of ¥200 billion in fiscal 2010 in the Indian market.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 384,000 employees worldwide. Fiscal 2006 (ended March 31, 2007) consolidated revenues totaled 10,247 billion yen ($86.8 billion). The company offers a wide range of systems, products and services in market sectors including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
