The city-headquartered Hi-Rel Power Electronics (HRPE) has been acquired by Japanese conglomerate Hitachi for an undisclosed sum.
Hitachi has made a majority equity investment in Hi-Rel in a move to strengthen the latter's electronics business in India, a company statement said here today.
The company aims to generate revenues of Rs 800 crore in the next five years by expanding it power electronics business offerings in South East Asia through this strategic equity stake, a HRPE official said.
HRPE, to be renamed Hitachi Hi-Rel Power Electronics, will set up a manufacturing facility for medium voltage inverters in Sanand near here by 2012 in order to expand its product line up.
"We shall soon be setting up a large manufacturing facility in Sanand," HRPE Managing Director Piyush Shah said.
The developments are expected to lead to expansion in the market for power electronic products such as medium voltage inverter systems, uninterrupted power supplies (UPS) and power conditioners for solar and wind power generation, a company official said.
HRPE, a leading power electronics company with considerable market share in industrial UPS, closed 2010-11 with a turnover of Rs 111.50 crore.
Hitachi has identified India as the fifth key management area for further business expansion.
