Page 141 - Hitachi IR 2025

Sr. No. Particulars Details
2. Reason and Justification as to why the
RPT is in the interest of the Company.
Hitachi Energy is a global technology leader that is advancing a sustainable
energy future for all. The Company serves customers in the utility, industry
and infrastructure sectors with innovative solutions and services across the
value chain. Together with customers and partners, the Company pioneers’
technologies and enable the digital transformation required to accelerate
the energy transition towards a carbon-neutral future. The Company is
advancing the energy system to become more sustainable, flexible and
secure whilst balancing social, environmental and economic value.
India is becoming a leader in clean tech and its investments have made
India a node for exports. Exports are a growth lever for the Company. The
Company has been working towards consistent export orders and has
invested in building capabilities and networks to sustain the same. Export
includes transactions with related party entities and the Company procures
and sells products, component, system, renders and receives services from
related party entities, including HE Sweden.
Further, business transactions with HE Sweden for Projects in India
and export are necessitated by manufacturing footprint of some of key
components and availability of key competencies. There are certain products
/ components which are tailor made and having proven technology. Some
of these products are high in value and least options are available in the
market as well.
The transactions with HE Sweden support the Company for improved
business volumes, Feeder factory contract manufacturing and for
procurement of items which are not available in the open market.
These transactions are necessary, normal and incidental to business and
also plays a significant role in the Company’s business growth considering
global contracts to aid operational efficiency and achieve business
objectives. These transactions are conducted at arm’s length and have been
undertaken in the past by the Company from time to time, depending on
needs of its business. These transactions also help in generating revenue
and enhancing the business operations of both the Company and HE
Sweden. Further, all transactions entered into with HE Sweden complement
and are integral to the Company’s export strategy.
The Company has expanded its export operations, positioning India as a
key global hub for clean-tech manufacturing and delivery. Transactions with
HE Sweden are central to this strategy, enabling access to high-value, tailor
made components and specialized competencies that are not available in
the open market. These transactions support feeder factory manufacturing,
global contract execution and operational efficiency.
The proposed increase in previous year actual RPT with HE Sweden vis-a-
vis the RPT limit sought for this year is driven by a substantial rise in actual
transaction volumes, which has increased in financial year 2024-25 when
compared to earlier years. This reflects the Company’s growing reliance on
HE Sweden for critical inputs and services. All transactions are conducted at
arm’s length, reviewed by the Audit Committee and are necessary, normal
and incidental to business operations. They are integral to both revenue
generation and the Company’s long-term export strategy.
To substantiate that the transactions are conducted at arm’s length and in
the ordinary course of business, the Company has obtained an independent
report from M/s. B B S R & Associates LLP, a sublicensee of KPMG,
confirming that the above related party transactions satisfies the principle
of arm's length and ordinary course of business.
3. Details of transaction relating to any loans, inter-corporate deposits, advances or investments made or given by the
listed entity or its subsidiary:
a) Details of the source of funds in
connection with the proposed
transaction
Not Applicable, as the transactions are not related to any loans, inter-
corporate deposits, advances or investment made or given by the Company
or its subsidiary
b) Where any financial indebtedness
is incurred to make or give
loans, inter-corporate deposits,
advances or investments, nature
of indebtedness; cost of funds;
and tenure
Integrated Annual Report 2024-25
139