Page 49 - Hitachi IR 2025

Key risk
Capital expansion
How we manage these risks
1. Indian factories to serve as an export
hub or feeder factories.
2. 3. Building local competencies in key
areas and technologies – HVDC,
E-Mobility, BESS, etc. to ensure
market visibility and leadership.
Loss of market / opportunity on
account of delay in construction of
new factory is analyzed and action
plan is created around it.
Key risk
Market & competition
How we manage these risks 1. Increased degree of localization in
existing products; to localize new
products catering to emerging sectors.
2. Expand capacities in products, such as
transformers, to improve lead times.
3. Ensure proper market surveys through
internal tools Global Target Setting
(GTS) and Market Insight & Market
Outlook (MIMO).
4. Unconstrained market analysis by top
consulting firms to leverage growth.
Description of the risk
Enhance organizational resilience across the value chain
4. 5. 6. Operational risk e.g. logistics disturbance
due to inbound or outboard value chain
issues are analysed and alternate plans
are calibrated.
Loss of production capacity due to gap in
productions on account of Natural calamities
and mitigating measures considered.
Expansion of capex activities to
meet customer demands and reduce
order backlogs.
Capitals
impacted
Description of the risk
Failing to address customer needs in high growth markets
and segments
Capitals
impacted
5. Understanding and capturing risks
related to market contingencies based
on headwinds.
6. 7. Updating the customers on product
offerings and solutions through our front-
end sales team at periodic intervals by
organizing technical seminars.
Proper analysis and updates of the
competitor moves.
Integrated Annual Report 2024-25
47