Dual objectives
The US$30-million investment in November 2014 is aimed at boosting capacity with new production lines at the Hyderabad facility. "India is a high growth market that Toshiba has positioned as a strategic base for its power-related businesses," says Toda. The purpose is dual; strengthen position in the domestic Industry while widening the horizon in the international markets.
"We aim to secure a 20 percent share of the Indian market by 2018, and also reinforce Toshiba Transmission & Distribution Systems (India) Pvt. Ltd. as a core T&D production base for other major markets, including Europe, ASEAN, and Africa. To do so, we plan to invest a cumulative 10-billion yen (approximatelyUS$100-million) in our T&D business in India, in the period to FY2016, including the November 2014 investment," Toda informs.
Toshiba has a long history for T&D business in India. With the acquired local manufacturing capability, it now has additional strength in T&D business in India to expand the business volumes. "We believe that Toshiba (TTDI) can increase the market share by manufacturing and supplying customer focused world class products and services as mentioned above with Japanese quality from the local factory. The knowledge base of Toshiba and the manufacturing capabilities of India will hugely benefit Toshiba in a big way," Toda states.
The strategy
TTDI's strategy includes expanding its product portfolio to realise its ambitious plans. "We will enter other growing markets in India, including power electronics systems, such as high voltage direct current (HVDC) power transmission and static VAR compensators for high voltage networks (SVC), and railway power supply systems. We will also be supplying cost effective, safer Gas Insulated Transformers up to 400kV which will reduce the land area required and can be used even underground.
"With Landis+Gyr in Toshiba's fold we expect to contribute to the SMART GRID and SMART CITY Projects which will further add to the improvement in our market share in the T&D segment," says Toda, explaining the game plan.
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