Rs 2,000 Crore Investment: Hitachi Group Company To Set Up New Transformer Manufacturing Facility In Gujarat

Indian equity benchmarks ended higher on Friday, with the benchmark Nifty 50 index gaining 418.65 points, or 1.81 per cent, to 23,580.25. Amid the positive market sentiment, Hitachi Energy India share price traded at Rs 34,175, up 2.78 per cent during the session.

Hitachi Energy Announces Rs 2,000 Crore Investment

Hitachi Energy India Limited has announced an investment of approximately Rs 2,000 crore to establish a new Large Power Transformer (LPT) manufacturing facility at Karjan, Vadodara, Gujarat. The investment forms part of the company's previously announced expansion plans and is aimed at strengthening domestic manufacturing capacity amid rising demand for grid infrastructure equipment.

The project will further expand the company's transformer manufacturing footprint and support both domestic and international markets.

India's Grid Expansion Driving Demand

According to the Central Electricity Authority (CEA), India is expected to require investments of approximately Rs 7.93 lakh crore in transmission infrastructure to integrate more than 900 GW of non-fossil fuel-based energy capacity by 2035.

Against this backdrop, demand for large power transformers is increasing due to grid expansion, renewable energy integration, industrial electrification, high-voltage transmission projects and the growing power requirements of AI-driven data centres.

Hitachi Energy India Plant To Be Operational By FY28

The new facility is scheduled for completion in FY28 and will manufacture a significant volume of large power transformers annually.

Once operational, the plant will cater to applications across high-voltage transmission, HVDC projects, power generation, AI data centres and large industrial facilities, enabling faster delivery of mission-critical grid equipment.

The facility will complement Hitachi Energy India's existing manufacturing network, which includes power, dry distribution and traction transformer factories in Gujarat, along with transformer insulation and component manufacturing facilities in Mysore and Halol.

Hitachi Energy India Over Expected 1,000 Jobs Expected

The company expects the project to generate more than 1,000 direct and indirect employment opportunities, supporting local economic development and skill creation in the region.

The plant will also be developed as a LEED-certified facility with a focus on energy efficiency, sustainability and responsible resource utilisation.
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Management Commentary

Commenting on the investment, N Venu, Managing Director & CEO, Hitachi Energy India Ltd, said: "This investment reflects our confidence in India’s energy future and the country’s growing stature as a strategic manufacturing base. By expanding our manufacturing presence, we aim to empower local communities, create skilled jobs, and deliver innovative solutions that support the country’s energy and sustainability goals."

Bruno Melles, CEO, Transformers Business Unit, Hitachi Energy, added: "India is one of the fastest-growing energy markets globally. This new factory will strengthen our ability to serve customers locally while contributing to the nation’s self-reliance and infrastructure development."

Digital And Sustainable Manufacturing Facility

The Vadodara facility will be developed as a fully digital manufacturing plant integrating smart manufacturing technologies and end-to-end digital connectivity.

According to the company, the facility will utilise data-driven operations to enhance quality, productivity and operational efficiency while maintaining high health, safety and environmental standards.

About Hitachi Energy India

Hitachi Energy India Limited is the Indian arm of Switzerland-headquartered Hitachi Energy and is engaged in transmission and distribution technologies, including transformers, HVDC systems, grid automation and power quality solutions.

The company serves utilities, renewable energy developers, industrial customers and infrastructure projects across India and export markets. As of March 31, 2025, Hitachi Energy India reported an order backlog of Rs 19,245.9 crore and operates 19 manufacturing facilities across eight locations in the country.

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Disclaimer: The article is for informational purposes only and not investment advice.