The Hindu : Hitachi to acquire majority stake in Amtrex Hitachi

Online edition of India's National Newspaper
Wednesday, Dec 25, 2002

Business

Business

Hitachi to acquire majority stake in Amtrex Hitachi

By Our Staff Correspondent

MUMBAI DEC. 24. Hitachi Home and Life Solutions Inc. (HHLS), a fully owned subsidiary of the Japanese major Hitachi, has announced plans to acquire the shareholding of its joint venture partner, the Lalbhai Group in the Rs. 239 crore Amtrex Hitachi Appliances Ltd., the Ahemdabad based, air-conditioner company.

Hitachi is proposing to acquire the entire 19.4 per cent stake of the Lalbhai group in Amtrex Hitachi, subject to requisite regulatory approvals. As a result, HHLS' shareholding would increase from 35.2 per cent to 54.6 per cent, making it the majority shareholder. The balance 45.4 per cent shares would remain with public and financial institutions and banks.

Kunio Sebata, President and CEO, HHLS, said, "India is a strategic market for us and will be a part of our global business expansion project, `G40', aimed at enhancing overseas sales ratio to 40 per cent by 2004. After acquiring the majority stake in Amtrex Hitachi, we intend to expand our operations in India by strengthening our air conditioner business in this high growth market. We also intend to evaluate business opportunities of other home appliances in the medium term to consolidate our presence in India.''

Amtrex Hitachi manufactures and sells a range of air-conditioners in India. It has consistently outperformed the air conditioner industry growth in the last two years. The success of the `Logicool I' range has helped the company maintain this trend and achieve an impressive volume growth of more than 40 per cent during summer of 2002.

Sanjay Lalbhai, Managing Director, Arvind Mills Ltd., the flagship company Lalbhai group and Chairman, Amtrex Hitachi Appliances said, "We have enjoyed a long and fruitful business association with Hitachi for more than a decade. Since introducing Hitachi brand in India in 1999, it has emerged as one of the top players in the highly competitive Indian RAC market. The Lalbhai group's decision to divest its stake is in line with our corporate strategy to focus and leverage our core strengths in the textile sector.''

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