Ahmedabad, 26 November 2013

Shanghai Hitachi, a JV between Highly Group and Hitachi AP, one global leading AC compressor manufacturers today commissioned India’s largest AC compressor plant situated in Ahmedabad and having capacity of 2 million sets per annum. The facility, set up over an area of 33000 square meters with an investment of US$ 72 million, was inaugurated by Mr. Saurabh Bhai Patel, Minister of Energy & Petrochemicals, Government of Gujarat.

The move is part of the 1.1 billion dollar Chinese major’s strategy to expand its presence in the global arena of the AC market, particularly in the BRICS countries. While other three plants of the company, two at Shanghai & one at Nanchang, China with individual capacity of 6 millions, 6 millions and 6 millions sets per annum respectively, the new plant in India will take up its collective capacity to 20 million sets. The unit in India is set up as company’s Indian arm which is known as Highly Electrical Appliances India Pvt. Ltd.(Highly India).

Speaking at the inauguration ceremony, Mr. Shen Hong, Managing Director of Highly India said, “Shanghai Hitachi entered India market in 2003, and then in 2008, we established a technical service center in New Delhi to strengthen our market position. Till now we have already cornered nearly 40% share of country’s market for AC compressors by the virtue of superior product performance and service and we are far ahead of other peers. So India has become the most important overseas market for Highly and now, with this greenfield investment in India, made following the principle of “Once planning, two-step implementation, we move one step forward towards our ultimate goal of becoming a major global supplier of AC compressor.

“Being a country with rapidly developing economy, India possesses many favorable factors for AC development, for example, high temperature climate all year round, large population base, growing middle class, the rise of the young consumer group, start of urbanization, rapid development of real-estate, low AC popularizing rate, etc. Currently, India’s AC market demand is 3.5 million sets with expected 20% average annual growth rate, which means India is gradually developing towards a main country for air conditioner manufacturing and air conditioner consumerism. However, AC Compressor being a core part of the air conditioner, and there is only one local manufacturer with less annual production, thus the AC Manufacturer almost relies on Import for its requirement of the AC compressor. Therefore, prospect of Highly India is highly promising, and Highly India will greatly contribute to Internationalization development of Highly’s main business as well as globalizing personnel training and reserves, which will push the dream being “No. 1 Global supplier of AC Compressor” to a new course,” said Mr. Shen Jianfang, Chairman of Highly Group..

It is worthwhile to mention that after eight-month of rapid construction activity, Highly India has made the Ahmadabad facility a modern green plant. It will rely on national level technology center of Highly HQ and join local R&D personnel in India to create customized and efficient green products for the Indian market that meets the work conditions. Highly India that is equipped with world’s advanced equipment production line will implement the production concept of “Same Production, Same Quality, Different People, One Standard”, which shall aim to create a globally consistent high-quality products and thus enhancing the competitiveness of Highly in the international market.

Highly has been the first manufacturer of Chinese air conditioner compressor industry to invest in India. And the inauguration ceremony of the new plant would be a milestone in the company’s endeavor for capturing a major chunk of BRICS market. Highly is a listed room air conditioner compressor enterprise in China. In line with the development of China’s economy and AC industry for last 20 years, the company has grown rapidly from introduction, digestion, assimilation to innovation and its product covering both fields of cooling and heating. So far, it has become a global leading AC compressor supplier having three factories in Shanghai and Nanchang. With the room AC industry competition intensifying and air conditioner compressor industry competition heating up continually, Highly has recently begun to accelerate implementation of the internationalization strategy in response to the new market situation and to seize the favorable opportunities available in the global market. Highly has firstly invested in India with sharp sense and international sight, which is one of the BRICS countries.

The Highly India Inauguration Ceremony has been themed as “Dream of the BRICS” and intended to convey Internationalization dream for being No.1 in the world and individual dream of Indian staff, and to make “BRICS Dream” in India.As a new force in the Indian economy, together with its move towards being No.1 in the world, Highly shall create many more work opportunities in India and more individual development space, besides it shall also transfer its accumulated modern management mode, technology innovations and enterprise culture to the India Staff to impact and change their attitude towards work, to upgrade the individual capacity of the Indian staff, to give them more opportunities, to improve the quality of their family lifestyle and to realize their personal dreams.

European Technical Center of Highly has started its operation this month, the technical center of Japan will also be operational by the end of 2013. This will enable Highly to be in international operation mode with three technology centers evolving synchronous manufacturing and joint development among China, Europe and Japan having 4 plants in 3 places (2 Factories in Shanghai, 1 Factory in NanChang, 1 Factory in India).