Toshiba Corporation today announced that it would establish a new production facility of electrical equipment for railway systems in Hyderabad to expand its commitment to India and its ability to supply international markets.

The new unit would manufacture power conversion systems and train control systems that provide overall operation management.

It will be built by Toshiba Transmission & Distribution Systems (India)(TTDI), which would establish a new, dedicated railway systems division to promote the business.

Production is planned to start in April 2017, and would be expanded to match demand. TTDI expects the plant to have over 100 employees by 2020, according to a Toshiba statement.

Locating production in India would allow Toshiba and TTDI to better understand and meet local market requirements, improve parts supply and maintenance capabilities, and also win cost benefits that would increase competitiveness, both in India and wider markets, it said.

Looking to the future, TTDI expects the new facility to grow as a manufacturing base that also meets demand in the Middle East and African markets.

TTDI CMD Katsutoshi Toda said: "India is an exciting, growing market that is committed to robust, long-term investment, especially in electricity and transportation infrastructure, and we are strongly committed to the country across our business lines.

"We will grow the new manufacturing base with investments that, I hope, will provide employment and contribute to 'Make in India' for India's industrial development. We will also endeavour to enhance our global competitiveness," he said.

By establishing a new manufacturing base, Toshiba considers India as one of the important markets with significant growth potential, the statement said, adding that the company looks forward to accelerating global expansion of its railway systems business through its highly reliable technology and service offerings.