HiKOKI unfolds business plans for India

Hitachi Koki, manufacturer of power tools and life-science equipment, has announced its aggressive business plans for India. Now rebranded as “HiKOKI”, the company’s Indian arm has been operating since 1996 and is the largest and fastest growing subsidiary in Asia (after Japan). HiKOKI India has registered steady growth over last 20 years with a CAGR of 16%. It is aiming to scale up its dealer count from 600 to 1000 by 2020.

Hitachi Koki is widely known in all segments for its technologically advanced, reliable and low-maintenance tools. During 2017-18, HiKOKI India sold 3,60,000 tools and aims to sell 400,000 tools during FY2018-19. Simultaneous to its rebranding efforts, the company is also launching new technology MultiVolt tools. Identifying a visible shift from corded to cordless tools among end users, HiKOKI is planning to introduce affordable, user-friendly cordless and DIY tools in the India market.

Dattatraya Joshi, Executive Director and Secretary, Hitachi Koki India said, “The power tools market is estimated at Rs 4000 crore and is growing rapidly at 7%, and is projected to grow at a steady pace for the next 10 years. Backed by powerful government initiatives to boost the manufacturing sector, India gives us a unique opportunity for growth, innovation and contribution when compared with other developed countries. There is a growing demand for quality and world-class tools which can enable India to compete globally. Keeping this demand in mind, we are strengthening our business and customising our offerings for the Indian market. We foresee growth opportunities shifting to Tier-II and III cities. Hence, we are looking to strengthen our base in this area and increase our market share. Overall, we are aiming to make India our growth engine for the coming years and our dynamic new partnership with KKR is further enabling us to accelerate this growth and pursue our goals more aggressively.”

HiKOKI India boasts of leading customers in automobile, construction and fabrication sectors. The company manufactures more than 50% of domestic requirement by volume. It also exports tools to Bangladesh, Sri Lanka and Nepal; and exports select components to other Hitachi Koki subsidiaries’ in Malaysia and Japan.

The corporate rebranding of Hitachi Koki to new brand HiKOKI is a major step for Hitachi Koki and its international growth strategy to ensure sustainable growth and expand business in the nearly 150 countries in its global network. KKR acquired Hitachi Koki in March 2017. While the company’s management remains the same, it has acquired better financial strength and autonomy which offers more scope to take decisions faster and develop products as per the market requirement.

HiKOKI India in its first step of embracing its new identity will be conducting a Mobile Vehicle Campaign where 2 mobile vehicles will travel throughout the country over the next 6 months to provide a complete experience zone for its consumers. This campaign will provide a great opportunity for HiKOKI to present its top-notch ensemble of new tools to its consumers and experience first-hand.