India had tremendous potential for investment in the automotive industry, Hitachi President and Chief Executive Officer of Hitachi Chemical Kazuyuki Tanaka said on Tuesday in Neemrana, about 100 km from here.

Speaking at the inauguration of two new projects, Allied JB Friction Pvt. Ltd. and Hitachi Chemical India Pvt. Ltd., Mr. Tanaka appreciated the transformation of the Japanese zone at Neemrana.

Mr. Tanaka said Hitachi Chemicals was expanding globally and besides India, where the unit begun production on Tuesday, the company had established plants in Singapore, Thailand, China, Indonesia and the U.S.

Hitachi Chemical has been set up at a total cost of Rs.120 crore for the manufacture of powdered metal products, mainly for engine and transmission components for two and four wheelers. In the current fiscal, the company envisages sales of Rs.20 crore, moving on to Rs.110 crore by 2015.

Speaking on the occasion, Tsunemasa Teramoto, the First Secretary of the Embassy of Japan, said that India was a young market for the automotive industry and its components.

“Japan is looking forward to collaborate (with India) in this area and invest in this sector,” he said.

Ravi Talwar, Chairman of Allied Nippon, the Indian partner of Allied JB Friction, hoped the newly set-up company, which will be manufacturing disc pads, brake linings and shoe assemblies for two wheelers as well as four-wheelers, would soon become number one in the country.

Allied JB Friction, set up at a cost of Rs.57.80 crore, will generate employment for 320 persons.

RELATED NEWS

Hitachi Solutions sets up Indian armJune 21, 2013

Hitachi to acquire PrizmNovember 26, 2013

More In: Industry | Business