Mitsubishi Electric India is targeting an annual revenue of $170 million (approximately Rs 1,097 crore) from transportation systems in India by 2020.
The firm’s plant at Bidadi, near Bengaluru, opened in November 2015, will assemble electrical propulsion equipment for rolling stock under a plan to expand Mitsubishi Electric India’s transportation-systems business. A technical centre, aimed at providing support for Mitsubishi Electric CNC’s business in India, was opened in Peenya, Bengaluru, in May last year. The facility will have assembly, repair, warehouse, training and back office functions under one roof.
According to Rajeev Sharma, head-corporate services and strategic planning, Mitsubishi Electric India, the local assembly and repair centre will decrease downtime.
The Indian arm of Japanese electrical and electronic equipment major is also aiming to increase its contribution to the parent firm’s global business in five years, as it expects to double its sales to about Rs 6,000 crore by financial year 2020.
Apart from its facilities in Bidadi and Peenya, Mitsubishi Electric India runs an automation product manufacturing and assembly unit at Pune, which develops graphic operation controllers in India.
Mitsubishi’s HVAC (heating, ventilation and air conditioning) business in India has also seen expansion by using the Indian facilities of Italy-based company MELCO Hydronics & IT Cooling (previously DeLclima), acquired last year for €508 million by Mitsubishi Electric Corporation. In addition, Mitsubishi Elevators, a group company of Mitsubishi Electric Corporation, too is commissioning a factory at Bengaluru.
Mitsubishi Electric plans to focus on selling more heating, ventilation and air conditioning products as well as electrical equipment used in train cars. From a Rs 930 crore sales generated from its local unit in FY14, Mitsubishi Electric India plans to raise the same by about 140 per cent to Rs 2,200-2,300 crore by March 2021.
“The rail-car electrical equipment and HVAC businesses, each generating about Rs 612 crore in sales a year, will drive the growth. We have, to date, received orders of rolling stock equipment for approximately 1,800 railcars from Delhi Metro. Our market share of rolling stock equipment in the metro market is roughly 65 per cent in India,” Sharma told Business Standard, while adding that, including orders received from Indian Railways, the total rolling stock equipment order book comes to roughly 2,000 railcars.