Hitachi Home and Life Solutions (India) Ltd, a subsidiary of Japan’s Hitachi Appliances Inc, on Tuesday announced its decision to shift its entire Jammu unit to its main plant at Kadi in Mehsana district of Gujarat. “In order to maximise productivity, minimise operational costs so as to remain competitive in the market and for administrative convenience, the management of the company has decided to centralise production activity,” the Ahmedabad-headquartered company informed the Bombay Stock Exchange (BSE) in a statement. “Hence as a policy decision, it has been decided to shift the entire Jammu unit along with man power, plant and machineries to its main plant in Gujarat, without adversely affecting the production capacity,” the statement added. This announcement propelled the shares of the company northwards on the BSE. The Hitachi scrip jumped 9.55 per cent during the intraday trade to close at Rs 294.80. Details regarding the cost of such a relocation and HR issues and reasons associated with such a major movement remained unanswered as officials of the company were not reachable despite repeated attempts. According to official sources, the ending of tax incentives in Jammu could be one of the possible reasons for the shift to Gujarat. Though the state does not offer any incentives, the company may benefit from the location of the Kadi unit placed in western India and is ideal for distribution of air-conditioners, chillers and other products manufactured at the unit, say experts.
