 "Hitachi makes Hitachi Hi-Rel its wholly-owned subsidiary")
"Hitachi Ltd announced today that it has made Hitachi Hi-Rel Power Electronics Pvt Ltd, a subsidiary that manufactures and sells power electronics (PE) products in... India, a wholly-owned subsidiary of Hitachi," the company said in a statement.
The acquisition was completed after purchasing remaining shares from the promoters and employees.
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The transaction will not result in any changes to the company name or the management structure, the company said.
The demand for PE products is expected to increase in keeping with the development of various industries in India and Southeast Asia as well as the recent rapid growth of renewable energy market worldwide.
In this backdrop, Hitachi decided to take direct control of Hitachi Hi-Rel operations and to reinforce PE business through increasing product competitiveness and expanding application fields by enhancing Hitachi Hi-Rel's R&D, design, and manufacturing structures with making full use of the Hitachi Group's sales or service networks.
PE products are used in a wide range of applications in various industries and infrastructure fields.
In October 2011, the Japanese firm made Hi-Rel Electronics a subsidiary of Hitachi, and established Hitachi Hi-Rel, to strengthen PE business in India, positioning it a first operation base for global business development, it said.
To pursue this strategy, Hitachi Hi-Rel added high voltage industrial inverters, power conditioning systems for large-scale photovoltaic generation facilities and large-scale uninterrupted power system (UPS) to the industrial UPS and related products that Hi-Rel had been manufacturing and selling for 25 years, it said.
Hitachi Hi-Rel has roughly tripled its revenues over the past four years.
Masakazu Aoki, Vice President and Executive Officer of Hitachi said, "We will further increase the competitiveness of Hitachi Hi-Rel's products, and expand the company's share in India which is expected to be a growth market in the future.
"We will also strengthen the power electronics product business by positioning Hitachi Hi-Rel as a base for global expansion," Aoki said.