Hitachi Asia Ltd will resume investment in Thailand amid improving political stability after the charter referendum, with plans to expand infrastructure development and financial solutions business to boost overseas sales.
The move is expected to drive overseas sales to 55% of total sales in 2018, up from 48% currently, said Ichiro Iino, the company's chief executive for Asia-Pacific.
The company had postponed its investment for two years due to the political uncertainty in Thailand.
Yesterday it hosted the Hitachi Social Innovation Forum in Thailand to showcase a broad range of solutions in Hitachi's social innovation business -- which combines infrastructure and advanced information technologies -- to customers, business partners and major stakeholders.
When these groups of people have a better understanding of Hitachi's two key business fields, the company will promote the product ranges from information and telecommunications and transport to power systems and healthcare in Thailand, said Mr Iino.
Hitachi is now transforming itself to focus on a specific market structure, providing innovations and services close to customers, and product-focused businesses that offers products, components and materials.
"We already transferred some businesses of which Hitachi did not hold major stakes, including leasing and logistics. Our priority is growth, not only for revenue but also profitability,” Mr Iino said.
The Hitachi Social Innovation Forum was previously held in the Philippines and Myanmar.
Hitachi Asia aims to achieve its mid-term management plan in 2018 when it targets to increase its overseas sales contribution to more than 55%, up from 48% last year. Sales contribution from Asia excluding China is about 10%.
After Thailand, the company will hold the forum in Malaysia, Indonesia and Vietnam in March next year. The overseas market, especially Asia, grows about 4-5% per year, higher than Japan.
"Thailand will play an instrumental role in helping Hitachi achieve the target as it is the biggest Asean market," said Yasuo Mizutani, managing director of Hitachi Asia (Thailand) Co.
Currently, Hitachi Group in Thailand comprises 45 companies. Of the total, 13 companies are in manufacturing, seven are sales companies and 25 in financial services.
Hitachi Asia (Thailand) posted ¥200 billion in sales in fiscal 2015 ending March 31, 2016. The top three businesses are consumer products, automotive and chemical.
The company aims to grow its sales in fiscal 2016 by 7-8%, focusing on financial, transportation and healthcare services.
Hitachi sees opportunities and challenges in Thailand because the government has been spending on infrastructure projects to boost the country's economy and competitiveness.
In March, Hitachi was awarded a contract for the Red Line as part of a consortium. The company will deliver electric trains to the government within 2020.
