Japanese electronics giant Hitachi has made a major equity investment in Ahmedabad-based electronics components maker Hi-Rel Electronics for a business alliance.
The Mumbai office of Luthra and Luthra advised Hi-Rel with a team led by Partner Bikash Jhawar along with Senior Associate Amit Shetye and Associate Rohan Shah.
Khaitan & Co. advised Hitachi with a team led by Partner Vaishali Sharma.
Hi-Rel is a small-sized electronic firm and majority owned by Helix Investments Advisors, an India-focused private equity firm.
According to the press release, the investment has been made to strengthen Hitachi’s and Hi-Rel’s power electronics business in India. Hi-Rel will subsequently be renamed Hitachi Hi-Rel Power Electronics Pvt. Ltd. in October 2011. Hitachi and Hi-Rel have also decided to construct a new manufacturing facility for medium-voltage inverters before the end of 2012 in the Sanand-II Gujarat Industrial Development Corporation (GIDC) Estate near Ahmedabad in Gujarat, in order to expand the product line up and strengthen the local production system.
Hitachi's medium-voltage and high-voltage control technologies, advanced manufacturing technologies and wealth of experience & expertise in systems integration in large-scale plants will be further boosted by Hi-Rel’s industrial-use UPS technologies, low-voltage and small & medium-sized control technologies, existing manufacturing facilities and nationwide sales & service network in India, according to VCCircle.