My Warm Greetings to the all shareholders of Hitachi Home & Life
Solutions (India) Limited.
The year gone by has been historic for many reasons. Not only did
the country give a majority mandate to a single party for the first
time in 30 years, they also signaled their rising aspirations and
impatience to achieve the same. The Business Fraternity which has
struggled with bearish demand is now looking to fulfill the aspirations
of the New India and enthusiastically looking upto the government to
provide the right signals and impetus to unleash the true growth
potential of the Indian Economy.
While the new government has stated its intent through many steps being
taken to improve the economy and also boost investment, I would like to
draw attention to three specific initiatives that may have an impact on
the Company in the coming years.
The First Initiative is the resolve to Roll out the Goods and Service
Tax by April''2016. This can be a big game changer for the industry
and it would go a long way to simplify the business and goods
The Second Initiative is the Make in India Initiative launched by
the government. HHLI
has been one of early players in setting up manufacturing in India and
has generated jobs for thousands of people in the last 30 years of its
existence. We are committed to Make in India and today are one of
the few AC Companies which manufacture the entire range of ACs in
The Third Initiative is the launch of Smart Cities Project. While this
is still in its initial stage and has a long way to fructify, the
project can open up lots of possibilities for HHLI for increased need
for energy efficient, environment friendly air conditioning in various
application areas. With Strong indigenous D & D focus, HHLI is rightly
positioned to take advantage of the demand arising in these application
While the start has been positive, the Indian Economy is still not out
of the woods. Many Companies are still reeling under debt and inflation
can rear its ugly head at any given time with increase in the petrol
and diesel prices. The Dollar is firming up again and with Import
content being nearly half of the total cost; this can have a major
impact on the overall operations of the business.
In this cautious optimistic environment, it gives me great pleasure to
share with you the highlights of the financial performance for 2014-15,
which are largely in line with our goals of long term sustainable
growth. Gross revenues from operations increased by 42% from Rs. 11993
Million to Rs. 17073 Million. The operating profit for the first time in
HHLI History crossed a figure of Rs. 1000 Million. This has been
possible due to strong efforts of the entire Company and I Congratulate
the Management team for their confidence and belief in setting
audacious goals and then achieving the same.
During the year under review, Room Air conditioners segment witnessed a
growth of approximately 13% in sales volume terms. Company has
achieved growth at 53% in this segment and increased its market share
substantially. The Growth came both in the Window as well as Split
segments. In Commercial Air conditioners segment, the market of VRF
showed a growth of about 14% while the Company achieved a growth of 24%
in the segment. In Chillers segment, market has grown marginally over
the last year due to slow growth in commercial real estate. This is an
emerging business for the Company and the Company intends to grow in
The Application based Air Conditioners consists of Solution for the
Telecommunication Industry and the Banking Industry. With Telecom
Industry aggressively switching to IME Model to reduce operating costs,
the Telecom Air Conditioners business would continue to be under
stress. The Company has a monopoly in this segment and continues to
serve its existing base. The Company has also launched a specialized
product for banking industry and is looking to cover the gap of telecom
AC through this product line.
The Home Appliances segment continues to grow at a good pace but on a
small base. The Company is operating in over 300 Ltrs Frost Free
Refrigerators Market and Over 7.0 Kgs Front Load Washing Machine
Market. While this segment is growing at a good pace, the limited range
and limited market addressability make it a small player in the market.
The Company is looking to expand the range to address a larger market.
In the Years, beginning 2009-10, your Company has continued to invest
large amounts in its Facilities and Sales & Service Network to ensure
that the Company is well positioned to leverage demand and serve a wide
range of customers across product lines. Today, HHLI operates 42 HCS
Centers across India in its endeavor to provide the best in class
service to the Indian Customers. HHLI will continue to invest with 3-5
years horizon to ensure that the stakeholders enjoy a sustained
I would like to take this opportunity to thank all the stakeholders of
Hitachi Home & Life Solutions (India) Limited - the employees for their
commitment and delivery, the vendors for their regular support, the
customers for their belief in our products and to you, our shareholders
for continuing to repose faith in us. We intend to continuously deliver
value to all of you.
I wish all of you the best of health and prosperity in the year
Hitachi Home & Life Solutions (India) Ltd.