Hitachi Home back in black

Hitachi Home & Life Solutions (India) Ltd (HHLI), a subsidiary of HHL Solutions Inc, Japan, has registered an net profit of Rs 3.79 crore in the first quarter after years of losses. Hitachi's net loss was Rs 24.82 crore for the period October 2002-March 2004.

Hitachi was banking on cutting edge technology products to deliver profits. The company has targeted a growth of more than 10 per cent in sales to 1.1 lakh air-conditioning units of worth Rs 280 crore in the current year, from nearly 1 lakh units of worth Rs 245 crore in 2003-04.

Ahead of the launch of its 'quadricool' air-conditioner with patented 'auto climate technology', R Khanna, senior vice president of sales, said, "This unit has the highest energy efficiency ratio of 11 against the industry average is 9, and with lowest noise level and pull down time. We have started showing signs of speedy recovery in our balance-sheet and this new product would accelerate the process further".

The company claimed it had around 10 per cent market share. Its aim was to corner 12 per cent share by the end of this fiscal.

Khanna said "Hitachi is one of the leaders in the high end of the market. The main focus is not the sales figure but to customers the best quality product".

Hitachi has its main manufacturing unit at Kadi with additional new plants at Jammu and Parwanoo.

It would be investing more on research & development. The figure could go up to 2 per cent of the overall cost, said Khanna. Some expenses on advertisements and brand promotion activities could be scaled back.

Hitachi would expand its dealers base in the eastern states as sales in the region accounted for around 15 per cent of overall sales. It would target markets in states like Orissa and Bihar.

"East India's sales grew by more than 20 per cent in the last quarter and the sales team is now concentrating on this region. Hitachi plans to raise its retail outlets from 60 to 100 within this year," he added.

Hitachi tripled exports from 3,000 units to 10,000 units in the last fiscal. It was aiming at doubling exports this fiscal. West Asian countries were the major importers.