HITACHI

Inspire The Next

ANKIT JAIN

ARPAN SHROFF

CHIRAG ZALA

JAYANT RAJPUT

RAHUL JAIN

ER.MEHUL SINH RAJPUT

PRESENTATION OVERVIEW

Company profile

Mission statement

Ownership & organization

Alliances

Product & technology

Market trends & growth

Key players

PRESENTATION OVERVIEW

SWOT analysis

Financial overview

• Past and Present

Financial ratio analysis

Probable outcomes and predictable crises

Critical success error

COMPANY PROFILE

Founded in 1910

Electrical engineer NAMIHEI ODAIRA in Ibarakai

Prefecture

First house venture company.

Than 1918 moves headquarter in Tokyo Japan

Gives name “Hi” means sun and “tachi” means rise

BACKGROUND & OVERVIEW

GROUPS OF HITACHI

List of company included:-

Hitachi home & life solution limited

Hitachi Defense Systems Company

Hitachi Metals, Ltd

Hitachi Koki

Hitachi Plant Technologies

Hitachi Rail

Hitachi Works

Hitachi Global Storage Technologies

Hitachi Printing Systems

BACKGROUND & OVERVIEW

Brand and production of group.

Information and telecommunication systems

Power systems

Social infrastructure and industrial systems

Electronic systems and equipment

Construction machinery

High functional materials and components

Automotive systems

Digital media and consumer products

BACKGROUND & OVERVIEW

Presented company :-

Hitachi home & life solution limited

Build their brand Kadi plant(MEHSANA)

Founded in 7th December 1984

Acquest Air Conditioning Systems Pvt. Ltd .

A deemed public limited company on April 18, 1990.

On September 14, 1990, the name of our Company was

changed to Amtrex Appliances Limited.

Further to Amtrex Hitachi Appliances Limited on January 25,

1999.

On March 12, 2003 its changed Hitachi home and life solution

limited.

BACKGROUND & OVERVIEW

Ownership & organization

CEO eyes deeper ties

HHLS CEO is Shin Chi Iizuka.

Manager of HHLS Shoji Tsubokuta

Average employees

BACK GROUND AND OVERVIEW

Human resource department.

Talent acquisition & employment

Appraisal & recognition

Building employee skills and capabilities for the future

Workforce management

Employee benefits

BACKGROUND AND OVERVIEW

Purchase

Procuring materials

Evaluting price

Paperwork and accounting

BACKGROUND & OVERVIEW

Alliance

BEI Confluence Communications Ltd

Hi-Rel Electronics.

World largest power units.

Hitachi holds 27% of brands in market share

BACKGROUND & OVERVIEW

Charitable Alliance

Boys club

Wbscd members.

The global compact

PRODUCT AND TECHNOLOGY

Hitachi home and life solution(India) limited.

Room air conditioner

Packaged Air Conditioners

Refrigerator set free system water cooler chiller

Specific Telecom Cooling Solution

Takumi Ductable

PRODUCT AND TECHNOLOGY

Part of a Japanese electronics giant Hitachi Appliances Inc

automation

Established position in premium segment of room AC in India

New ACs and refrigerators launched

HHLI launched a new range of split AC "i‐TEC" (Inverter AC)

and upgraded “ACE Follow me” models

MARKET OVERVIEW

Market trends & growth

Global recession = increase in consumption of cheaper items

Room air conditioning used in India 27%

35% of all over the worlds and 27 % in the every year.

MARKET OVERVIEW

Hitachi always shows market value of the product in front of

other product.

The current market capitalization stands at Rs 1,771.35

The company has reported a standalone sales of Rs 400.94

crore.

Net Profit of Rs 43.02 crore for the quarter ended Jun 2014.

Emerging markets:-prefer international brands

MARKET OVERVIEW

International

Nutone

Mitsubishi electrical ltd.

Domestics

Bajaj electrical ltd.

Khaitan limited.

BPL limited.

STRATEGIC ANALYSIS

SWOT analysis.

Strength :-market share.

Hitachi has roughly 27% of the global market share

Nearly 5 times as much as their nearest competitor

India 2014 : 6% increase in market share

Aided HHLS in declining U.S. market growth

STRATEGIC ANALYSIS

STRENGTHSDifferentiation:

Trade marked items

Comp & Benefits

Work/Life Balance

Senior Management

Culture & Values

Career Opportunities

International presence: Global diversifications and ability to expand rapidly (i.e.

Asia)

STRATEGIC ANALYSIS

Weaknesses

Systemic

High debt burden

Cost structure

Bad acquisitions

STRATEGIC ANALYSIS

Opportunities

Innovation

Online market

Emerging market

Benefits in further maintaining costs to provide better margins

STRATEGIC ANALYSIS

Threats

Bad economy

Change in tastes

Volatile currency

FINANCIAL OVERVIEW

Past

Steady share price increase over past ten years

HHLS (India) sales per units have grown by 4% over 4 last

years

Presents

Top brands achieved 6% growth in 2014 compared to last

years

Annual sales per stores in India are around 1.3 millions on

per industry

FINANCIAL OVERVIEW

Past/Present

Hitachi India sales per unit:

Year 2014 2013 2012 Growth %

HHLS, India 400 340 310 6%

FINANCIAL OVERVIEW

Past/present

HHLS ltd. division growth:-

In Billions 2014 2013 2012 3-year growth

Hitachi IndiaCompany Sales: $1.2

Franchisee Sales: $4.0

$1.2

$4.0

$1.4

$3.9

6%

4%

Hitachi InternationalCompany Sales: $1.4

Franchisee Sales: $7.6

$1.3

$6.7

$1.1

$5.7

9%

13%

Hitachi JapanCompany Sales: $2.5

Franchisee Sales: $1.1

$1.7

$1.1

$1.3

$0.8

14%

9%

FINANCIAL OVERVIEW

Debt/equity

Hitachi home and life solution:-

Unit :-3.28

Industry :-2.00

Gross profit:-

Unit :-20.%

Industry :-35.2%

Return on assets:-

Unit :-15%

Industry:-12%

FINANCIAL OVERVIEW

Financial ratio analysis

Earning per share:

Unit :-2.22

Industry :-4.11

Current ratio:

Unit :-0.7

Industry :-1.1

Inventory turnover:

Unit :-56.4

Industry :-97.8

FINANCIAL OVERVIEW

Quick ratio:

Unit :-0.4

Industry :-1.1

Assets turnover:

Unit :-1.14

Industry :-1.1

RESEARCH AND DEVELOPMENT Development of tropical inverter splits range for Indian tropical

condition

Development of split air conditioner range with smart

application based on android operating system

Development of star range with highest COP and cooling

capacity in markets

Development of star range in single throw window air

conditions category

Development of small chassis window air conditioner range as

per government regulations

Development of constant speed heat pump product range

Development of new controller solution for telecom customer

which can convert 48VDC battery backup to 230VAC and

hence can run.

PROBABLE OUTCOMES & PREDICTABLE

CRISES

1. Continue rapid expansion in emerging markets

2. Diversification of menus in India

3. Improve control process on ethical operations

4. Improve operational and supply chain efficiency

CRITICAL SUCCESS FACTOR

1. Develop brand equity in new markets and sustain a

differentiated brand in existing markets

2. Develop and sustain healthy relationship stores, franchisees

and other stake holders

3. Provide an infrastructure that is flexible enough to adapt to

local markets under the umbrella brand

4. Ensure the integrity of supply and distribution network in the

face of international variances, environmental crises and

intensifying ethical concerns.