Established in 2003, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC; President & CEO Masahiko Yamawaki) was formed through the integration of the industrial businesses of Toshiba Corporation and Mitsubishi Electric Corporation. Since then, based on the technologies and business foundation inherited from the two companies, TMEIC has been maximizing synergies in its core domains, including industrial systems, power electronics equipment, and rotating machinery, and is now expanding its business areas by increasing its penetration into the renewable energy field along with strengthening its global business. As a result, consolidated net sales went from about INR 110 billion at the time of its establishment to about INR 170 billion, with an approximate surge of about 50%. With the hope of contributing to further advancements, TMEIC is keeping its sights on the world and will continue to deliver best-in-class products and optimal solutions.
Medium-term management policy and global business
TMEIC has developed its “Next Vision” management vision for 2030. The vision is based on the policies of strengthening business competitiveness through value creation to succeed in the rapidly changing VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) era and strengthening the competitiveness of the management foundation by looking towards the era of competition requiring collective corporate strengths and not just competitive products. Guided by TMEIC Next Vision, TMEIC aims to enhance corporate value focused on three strategic axes: Global, Innovation, and Presence.
TMEIC has established the quantifiable management targets of achieving consolidated net sales of INR 230 billion within several years and INR 330 billion by 2030. The growth strategy prioritizes global business expansion and new business expansion.
With regard to global business, TMEIC has reinforced its manufacturing capability by setting up bases in China, the United States, and India, completing its foundation for business expansion. Sales from overseas bases have more than doubled from approximately INR 25 billion in 2016 to around INR 60 billion. TMEIC will continue to work to achieve net sales of INR 85 billion within several years and over INR 130 billion by 2030. To achieve this, TMEIC will strengthen its readiness for markets (localization) through the functional enhancement of each base, aimed at realising continued high growth.
Contributing to the realisation of carbon neutrality
Today, practising responsible business, as well as putting sustainability at the heart of every industry (chief of them being carbon neutrality), has become a goal for many global companies. The key to one of the growth strategies of TMEIC’s new business expansion is also committed to achieving this goal. Possessing an array of technologies and products that can contribute to a carbon-neutral society, TMEIC believes that its social mission is to contribute at a global level and create a sustainable and resilient society.
TMEIC is particularly committed to initiatives that support industry towards achieving carbon neutrality. In doing so, TMEIC contributes to the realisation of next-generation carbon-neutral factories through a three-pronged approach, namely, smart factory, green energy, and energy management solutions. The Group recognizes that it has a social responsibility to create a society in which the environment and the economy are in harmony with each other. With this in mind, TMEIC has been undertaking initiatives that leverage their state-of-the-art technology and exceptional engineering capabilities so that their business activities are in accordance with the goals of a sustainable society.
Smart factory solutions will enable TMEIC to increase the sophistication of factory operations through the application of digital technologies to TMEIC’s operation technology (OT). Green energy solutions will lead to further expansion of factories’ use of clean energy through the use of PV inverters and energy storage systems (ESS). Through energy management, TMEIC will minimize energy consumption and increase power source reliability to create factories that perform optimal energy operations.
Expectations for business in India
Under its Next Vision, TMEIC designates India as the most important region, particularly for global business expansion. TMEIC’s largest global manufacturing factory is set up in India, acting as a base for supplying equipment and devices for the global market.
Although the COVID-19 pandemic is currently affecting the Indian market, it is expected to return to high economic growth after the transition toward normalcy, thanks to the nation’s high potential and ease of doing business. It is anticipated that the Indian factory will also grow along with the growth of the Indian market and TMEIC’s global business.
TMEIC has already delivered many products to the clean energy and renewable energy fields and contributed to the reduction of CO2 emissions through the provision of iron and steel factory operation systems that meet the rapidly growing demand for steel materials and the supply of high-efficiency drives and motors to industrial and social infrastructure markets. Going forward, TMEIC seeks to further widen its appeal, including the use of hydrogen, and contribute to the realisation of carbon neutrality and the development of industry in India.
Learn more about TMEIC India: Technology, Products and Automation Solutions for Industries Worldwide | TMEIC
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today