My warm greetings to all the shareholders of Hitachi Home & Lite
Solutions (India) Ltd. (HHLI).
As of now me economy continues to ba In a state of slumber. With an
annual growth of 4.9% in 2013-14, India has now recorded two
consecutive years of less than 5% annuaJ growth. Sadly, for the first
the in the last ten years, private consumption growth has been below
5% at 4.1 % for 2013-14. The slowduwn in economic growth was coupled
with fairly high levels of domestic inflation, In addition, with
adverse movements in current account deficit and some degree of capital
flight, there was significant depreciation of the rupee when compared
to the US dollar. This negatively affected me consumer durables
industry, where Company operates, from Iwp angles. For one, it made
tully mported goods even more expensive for the average Indian
consumer. For another, it increased costs of imported intermedianes,
which accouni for a large proportion of value of durable goods
produced in India exerting cost pressures, on manufacturers.
In this difficult business environment, it gives me pleasure to share
with you the highlights of the financial performance for 2013-14. which
are largely in line with our goals of long term sustainable growth. Net
revenues from operations increased by 18-3% to 1 ,099.7 crore. In
fact, with this levels of sales we are now a 1,000 crore plus turnover
entity in India. Even though prices and costs wore undar pressure,
operating profit or profit before depreciation. Interest end tax
increased by 11 % to Rs.53.3 croore in 2013-14.
Our strong belief is that Society changes. Hitachi transforms it.
Economic cycles are transient. What is Important is to appreciate and
understand the rapid transformation that is happening in the Indian
consumer appliances market. Once perceived as luxury items, consumer
durables have today become an indispensable tool of everyday use for
the Indian middle class. The demand for consumer durables in India is
expected to reach Rs.52,000 crore (US $ 8.4 billion) by 2015 ,
according to ASSOCHAM; tha largest contributing sector among durables
is white goods, also Known as consumer appliances, like Air
conditioners, refrigerators and washing machines. Hitachi is playing its
role as a catalyst for change by continuously Investing in
developing new and innovative products that stand out in tha market.
Tha diverse and rich product mix is supported by an ever expanding
sales network that aims to reach out to maximum customers.
This was evident during 2013-14 in our two product segments -Air
conditioners and refrigerators.
Company successfully introduced ihe Tropical Inverter Technology in
the room Air conditioner segment. This technology is custom made for
tropical weather conditions like the one that exists in India.
Basically, with this technology, Hitachi inverter ACs can perform
consistently and efficiency in extreme Indian weathar conditions
while optimally using energy, The Tropical Inverter Technology ensures
less de-rating at high ambient temperatures to give consistent cooling
comfort. The ''i-Ciean Inverter'', ''ACE Inverter'' end ''Kampa Inverter''
models are powered with this technology.
It gives me a great sense of pride to announce that Company has been
honored wifr Certificate of Merit at the National Energy Conservation
Awards (NECA)-2013 by Bureau of Energy Efficiency [BEE], Ministry
of Power for producing its range of energy efficient Air conditioners.
A significant proportion of room Air conditioners is actually sold
institutionally or on a Buainess-to-Business