By Divya Chowdhury, Savio Shetty and VarunVyas Hebbalalu
DAVOS, Switzerland (Reuters) – Hitachi India expects to contribute $20 billion in revenue to its Japanese parent by 2030, its managing director said in an interview on the sidelines of the World Economic Forum annual meeting.
“India is being looked at as a global hub, especially in the components and capital goods businesses,” said Bharat Kaushal, Hitachi India’s managing director, told the Reuters Global Markets Forum (GMF) in the Swiss ski resort of Davos on Monday.
Hitachi India’s rail and power business would be the biggest revenue contributor over the next decade, he Kaushal added.
Japan’s Hitachi had annual revenue of 7.64 trillion yen ($52.44 billion) in the fiscal year ending March 2023.
Hitachi Energy India makes equipment such as transformers and circuit-breakers for energy transmission and railway components. The parts made in India are used across the world, such as in Hitachi’s projects in the U.S, Kaushal said.
Kaushal said Hitachi India has plans to expand further in North America and said it is working on the first phase of a Baltimore rail deal for the Washington D.C. metro.
The ASEAN-India region contributed 717.7 billion yen to Hitachi’s revenue in fiscal 2023, accounting for 9.4% of the total. The group does not give India’s contribution.
India experienced a record rise in power demand last year, leading to the government ramping up electricity generation capacity, including in renewable energy.
India’s green energy push extends from proposals to cut taxes on electric vehicles and solar panels to injecting billions of dollars of equity into big state oil refiners to fund energy transition projects.
The energy demand surge has benefited transmission companies, as more projects came their way.
During the second quarter, some of the contracts given to Hitachi Energy include a project to integrate 4 gigawatts (GW) of renewable energy from Rajasthan into the national grid.
(Join GMF, a chat room hosted on LSEG Messenger, for live interviews: https://lseg.group/3TN7SHH)
($1 = 145.7000 yen)
(Reporting by Divya Chowdhury in Davos and Savio Shetty in Mumbai; Additional reporting by Varun Vyas; Editing by Alexander Smith)