Press Information

MHI to Strengthen its Indian Subsidiary to Three-base Structure
To Respond to Increasing Business Opportunities
For Large-scale Social Infrastructure Projects

No.1216
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Tokyo, January 30, 2008 - Mitsubishi Heavy Industries, Ltd. (MHI) is taking steps to build up the operational structure of Mitsubishi Heavy Industries India Private Ltd. (MHII), an Indian subsidiary, with establishment of a three-point structure to consist of two new branch offices in Mumbai and Bangalore to complement the existing base in New Delhi. The expansion of MHII aims to enhance the subsidiary's locally tailored response to increasing business opportunities in India for large-scale projects relating to social infrastructure improvement, including power plants and subway construction, against the backdrop of the country's outstanding economic growth. MHII and its new branches will also fully function as bases to support marketing activities for mass and medium-lot manufactured machinery for India's rapidly expanding automobile industry. The two new offices will commence operations on February 1, 2008.

MHII is a wholly owned subsidiary of MHI established in February 2005. The head office in New Delhi and new branch offices in Mumbai and Bangalore will deal primarily with the economic zones in which they are located: respectively, the country's northern, southwestern and southern regions. Through these three bases MHII will also serve the entire Indian market and provide support for marketing and after-the-sales services activities for almost all MHI products, ranging from large-scale power generation systems, including gas-turbine combined cycle (GTCC) power generation systems, and environmental facility, such as CO2 recovery plants and desulfurization plants, to mass and medium-lot manufactured machinery, such as machine tools, newspaper web offset presses, diesel power plants and turbochargers.

The New Delhi head office will mainly handle large-scale, Indian governmental and foreign government-aided development projects, in such areas as power generation and transportation. At the same time, the head office will vigorously seek business from automobile industry members in the Delhi area, home to many local and Japanese-affiliated auto manufacturers.

The new office in Mumbai will focus its activities on market research and analysis as well as information gathering. Mumbai is India's commercial, financial and cultural center, and many Indian conglomerates locate their offices here. MHII's new branch will also pursue information exchanges and personal networking in preparation for selection of candidates as future business partners.

The Bangalore office will be established as a supporting base for all MHI products by adding staff to MHII's existing power systems design unit. As Bangalore is located close to Chennai, the "Detroit of South Asia," this office will also function as a base to support marketing activities and conduct business talks for MHI's various mass and medium-lot manufactured products for the auto industry.

In recent years, India has maintained robust economic growth at an annual rate of 8-9%, and the country recorded 9.4% real GDP growth in fiscal 2006. Furthermore, along with population growth, economic scale is expanding rapidly. In tandem with this economic development, India's electricity supply/demand gap has become increasingly serious. To cope with the energy supply issue, India plans to make large investments to boost its power supply capacity. It also plans large-scale infrastructure improvement projects in roads, railroads, and ports and harbors.

In light of the many large-scale projects planned, the booming auto industry and the economic conditions just described, MHI believes its various business opportunities in India will expand at an accelerating pace in the years ahead. Leveraging MHII's expanding operational structure, MHI intends to step up its business activities within this vibrant market, including further developments such as capital and technological tie-ups with local enterprises.