Hitachi Announces the Opening of Investment Discussions With Hi-Rel Electronics

June 15, 2011 by Jeff Shepard

Hitachi, Ltd. and Hi-Rel Electronics Pvt. Ltd. announced that they have agreed to open discussions regarding a business alliance, including Hitachi’s investment on Hi-Rel and creation of a new manufacturing facility. The aim of this move is to bolster both companies’ power electronics businesses in India. The two companies will hold discussions with a view to entering into a final agreement around the end of September 2011.

India is expected to see many large-scale plants such as power plants, steel works and petrochemical plants constructed as its economy grows rapidly. Moreover, demand is rising in the country for inverter systems and uninterrupted power supplies (UPS) to ensure stable operations, conserve energy and handle power fluctuations at these plants. Increased investment is also predicted in renewable energy to create a low-carbon society while achieving economic growth. This is expected to spur expansion of the market for power electronics-related products for handling power fluctuations that are commonplace with solar, wind and other renewable forms of power generation.

Hitachi is focusing on the Social Innovation Business, which provides social infrastructures supported by highly reliable and highly efficient information and telecommunications technology, and accelerates it globally. Hitachi identifies India as a one of 11 key regions, where increased demand is expected. Hitachi is strengthening the power electronics business as one of the Social Innovation Business and has supplied a large number of power electronics-related products in Japan and overseas. These products include medium- to high-voltage inverter drive systems for rolling mills used in steel works and compressors used in petrochemical plants, UPS, and inverters for solar power generation and wind power generation systems. Hitachi therefore possesses advanced technologies and a wealth of expertise in this area. Hi-Rel, meanwhile, produces industrial-UPS and drive systems, notably low-voltage inverters. It has a nationwide sales and service network in India.

As a result of this agreement, Hitachi and Hi-Rel shall commence discussions with the objective of expanding their power electronics businesses in India. This will be achieved by fusing the strengths of each company – Hitachi’s medium- and high-voltage control technologies, advanced manufacturing technologies, and wealth of experience and expertise in systems integration in large-scale plants, and Hi-Rel’s industrial-use UPS technologies, low-voltage and small- and medium-sized control technologies, existing manufacturing facilities, and nationwide sales and service network in India.