NEW DELHI: Japanese technology giant Hitachi is expanding its ATM operations in the country. Hitachi-Omron Terminal Solutions has announced setting up of Hitachi Terminal Solutions India Private Limited as an ATM manufacturing company in India.

Set with a capital expenditure of Rs 100 crore, the company will be based out of Bangalore. Hitachi Terminal Solutions India will start production from June 2016 and aims to produce 1,500 units of ATM per month by the end of fiscal year 2016.

“Hitachi-Omron Terminal Solutions entered the cash recycling ATM market in India at an early stage and has been providing ATMs that are suited to India’s environment, considering the quality, condition and usage of the banknotes, and solutions corresponding to needs of operational efficiency of financial institutions and the deposits of users.” said Tetsuji Shimojo, representative director and president of Hitachi-Omron Terminal Solutions. The company also said that with the new facility it aims leverage on the government’s ‘Make in India’ policy and contribute to the country’s economic development.

India is said to be one of Asia’s largest ATM markets, courtesy the country’s economic growth rate of 7% and it being the world’s second most populous country with a population of around 1.3 billion people.

At present, there are about 200,000 ATMs and CDs (Cash Dispensing ATMs) operating in India. The Reserve Bank of India, which is the country’s central bank, is promoting a financial inclusion policy, and financial institutions are increasing their investment in facilities and services. This is expected to further boost the ATM market in the country.

Hitachi-Omron Terminal Solutions entered the India market in 2010 through sales of the cash recycling ATMs. In the year 2013, Hitachi acquired Prizm Payment Services, a leading provider of payment services using ATMs and point of sales systems to banks and financial institutions in India.