Financial Daily from THE HINDU group of publications
Friday, Mar 07, 2003
Financial Daily from THE HINDU group of publications Friday, Mar 07, 2003 |
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Corporate
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Rights Issues Hitachi rights issue by June
Richa Mishra
NEW DELHI, March 6 HITACHI Home & Life Solutions (India) Ltd, the erstwhile Amtrex Hitachi Appliances Ltd (AHA), is going to come out with its rights issue in June. The company had earlier got its shareholders approval for the issue of rights shares in the ratio of 3:5 at a price of Rs 31 per equity share to augment the financial resources of the company for its on-going business needs. Based on statutory approvals, the company proposes to issue 8.8 million shares aggregating to Rs 27.3 crore to the existing shareholders. Announcing the launch of its new range of air conditioners (ACs), Mr Shoji Tsubokuta, Managing Director, Hitachi Home & Life Solutions (India), said that once the company has established itself in the AC segment it will import refrigerators and test market them by the end of this year. Initially the company will bring in five models of frost-free refrigerators. Hitachi's market share in India in 2002 was 14 per cent of the organised sector, which the company proposes to increase to about 20 per cent over the next two years. Further, the company also proposes to make use of India's cost competitiveness, it intends to develop India as the export hub for Hitachi's window ACs. The Hitachi range 2003 includes 17 window and split models — eight new models of Logicool Mu and nine big Flo models in capacities from 0.75 tonne to four tonne. The prices of these models range from Rs 19,000 to Rs 86,000. On whether, this pricing of new range has been decided after considering the recent price cuts announced by the company, Mr Tsubokuta, told Business Line "yes, we have kept it in consideration." Further, the Amtrex range from the Hitachi stable is also being revamped with the introduction of new models. While the Hitachi range remains for the premium segment, with the Amtrex range the company proposes to capture the mainstream market. The difference of price between the two brands is about 10 per cent.
No brand ambassadors
EVEN as the competitors are roping in cricketing heroes or big bollywood stars to endorse their products, Hitachi has decided to steer shy of this image building strategy. "We believe that the product should not be overshadowed by its brand ambassadors," Mr Anil Gupta, Vice-President Marketing and Business Strategy, told Business Line. In the view of intense competition in the segment, the company is planning to spend close to Rs 20 crore on brand building this year. A new set of ad campaigns is expected from the company soon, Mr Gupta said. The campaign will mostly focus on the product benefits to the consumer and has been designed by Leo Burnett. With the summer approaching, the company does not want to be left behind in the race. It is strengthening its distribution network and also appointing more dealers in upcountry areas. If this was not enough, Hitachi also proposes to bring in washing machines by next year.
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