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Hitachi to reduce number of group companies by 40%

Move is part of Japanese industrial conglomerate's profit-reforms plan

  © Reuters

TOKYO -- Hitachi has decided to reduce the number of its group companies by 40% by the fiscal year ending in March 2022, consolidating a sprawling empire of 800 companies to around 500. It has has over 300 companies in China and Southeast Asia alone.

The plan is part of a drastic program to eliminate indirect costs and increase its operating profit margin to over 10%, the level of overseas rivals, from an estimated 7.1% for the fiscal year ended in March.

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