HITACHI India expects to contribute US$20 billion in revenue to its Japanese parent by 2030, its managing director said in an interview on the sidelines of the World Economic Forum annual meeting.

“India is being looked at as a global hub, especially in the components and capital goods businesses,” said Bharat Kaushal, Hitachi India’s managing director. He was speaking at the Reuters Global Markets Forum (GMF) in the Swiss ski resort of Davos on Monday (Jan 15).

Hitachi India’s rail and power business will be the biggest revenue contributor over the next decade, Kaushal added.

Japan’s Hitachi had annual revenue of 7.64 trillion yen (S$70 billion) in the fiscal year ended March 2023.

Hitachi Energy India makes equipment such as transformers and circuit breakers for energy transmission and railway components. The parts made in India are used across the world, including in Hitachi’s projects in the US, Kaushal said.

He added that Hitachi India has plans to expand further in North America, noting that it is working on the first phase of a Baltimore rail deal for the Washington, DC metro.

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The Asean-India region contributed 717.7 billion yen to Hitachi’s revenue in FY2023, accounting for 9.4 per cent of the total. The group did not give India’s contribution.

India experienced a record rise in power demand last year, leading the government to ramp up electricity generation capacity, including in renewable energy.

India’s green energy push extends from proposals to cut taxes on electric vehicles and solar panels, to injecting billions of dollars of equity into big state oil refiners to fund energy transition projects.

The energy demand surge has benefited transmission companies, as more projects came their way.

During the second quarter, some of the contracts given to Hitachi Energy included a project to integrate 4 gigawatts of renewable energy from Rajasthan into the national grid. REUTERS