Hitachi Ltd has pledged to invest 300bn yen ($2.86bn) in the next two years acquiring firms in the fast-growing information systems business, or seeking alliances with them via capital participation. It will also invest 50bn yen ($476m) by 2003 to grow internet-related business for companies and individuals.
The measures are key components of a three-year business plan which aims to transform Hitachi into a firm with a competitive edge in solutions and internet-related businesses, from the comprehensive consumer-electronics maker it is now.
Hitachi will shift its corporate resources to information and solution businesses and reorganize the existing information systems division into five groups, including ones focusing on finance, distribution and the environment, company president Etsuhiko Shoyama announced.
The plan calls for Hitachi to increase group sales to 9.4 trillion yen ($89.5bn) in the 2001/2 financial year from an estimated 7.8 trillion yen ($74.3bn) in the year ending next March 31. Sales in the information business and internet-related business sectors are projected to be 2.6 trillion yen ($24.8bn) by then.
