Japanese power tools conglomerate, Hitachi Koki, which has changed its corporate name to Koki Holdings following the acquisition of Hitachi Power tools by US Private Equity fund, KKR, is rebranding its product range as HiKOKI. The acquisition is expected to give better financial strength and autonomy for decision-making and to develop products as per market requirements.
Hitachi Koki Ltd, established in 1948 in Japan, has more than 70 subsidiary companies with about 36 sales bases in 70 countries. The company, which identifies itself as a lightweight power tools manufacturer, has been operating in India since 1996 and is the largest and fastest growing subsidiary in Asia, followed by Japan. Its Indian operations are of strategic importance, as apart from meeting market requirements, the subsidiary company also exports its products to Bangladesh, Sri Lanka and Nepal, and select components to other Hitachi Koki subsidiaries in Malaysia and Japan.
HiKOKI is widely known in all segments for their technologically advanced, reliable and low maintenance tools. The corporate rebranding of Hitachi Koki to HiKOKI is a major step for the company and its international growth strategy aimed at ensuring sustainable growth while expanding business in the nearly 150 countries in Hitachi Koki's global network. Simultaneous to its rebranding efforts, the company also launched new technology Multi Volt tools. Identifying a visible shift from corded to cordless tools among end-users, HiKOKI is planning to introduce affordable, user-friendly cordless and DIY tools in the India market.
HiKOKI International plans to make its India arm a 100% subsidiary. It aims to increase headcount in India by 15% YoY by 2020; and have 1000 dealers in India by 2020.
HiKOKI India (HKI) has registered steady growth over the last 20 years with a CAGR of 16%. During FY 2017-18, it sold 3,60,000 tools and aims to sell 4,00,000 tools during FY 2018-19. According to Dattatraya Joshi – Executive Director & Secretary, HiKOKI India, the power tools market is estimated to be `4,000 crore and growing 7%, and is projected to grow at a steady pace for the next 10 years, backed by initiatives of the government to boost the manufacturing sector with Make-in-India, Skill India etc. It has leading customers in automobile, construction and fabrication sectors, and manufactures more than 50% of domestic requirement by volume.
HKI is the 2nd biggest player in the Power Tools business in India and it offers innovative, high-performance, and high-quality products and services. It has its head office in Bangalore, 13 branches, 600 dealers across the country, and over 100 authorized service centres. HKI in its first step of embracing its new identity will be conducting a Mobile Vehicle campaign where two mobile vehicles will travel throughout the country over the next six months to provide a complete experience zone of its new tools for its customers to experience first-hand Japanese technology driven quality and precision.