Investment Details
Hitachi Energy India Limited is investing approximately INR 2000 crore to establish a new Large Power Transformer (LPT) factory in Karjan, Vadodara, India. This investment was previously announced during the company's FY26 Q4 results and represents a continuation of that commitment.
Factory Specifications and Timeline
The new factory is scheduled for completion in FY28 and will be a state-of-the-art facility manufacturing a significant volume of power transformers annually. It will feature advanced technologies and the highest health, safety, and sustainability standards, planned as a LEED-certified site with strong focus on energy efficiency and responsible resource use.
The facility will be fully digital, integrating smart manufacturing technologies and end-to-end digital connectivity to enable data-driven operations, enhance quality and productivity, and ensure consistent high-performance delivery.
Strategic Rationale and Market Context
The investment addresses India's growing electricity demand driven by grid expansion, data centers, and industrial electrification. According to the Central Electricity Authority, India requires investments totaling INR 7.93 lakh crore in transmission infrastructure to integrate more than 900 gigawatts of non-fossil fuel-based energy by 2035.
The new factory will complement Hitachi Energy India's existing footprint of power, dry distribution and traction transformer factories in Gujarat state, and transformer insulation and components factories in Mysore and Halol.
Applications and Capabilities
Once operational, the factory will support applications including:
- High-voltage transmission
- HVDC systems
- Power generation
- AI data centers
- Large-scale industrial applications
Employment and Economic Impact
The project is expected to create more than 1,000 direct and indirect jobs, supporting local economic development and skills advancement. The investment reinforces the company's commitment to empowering local communities and creating skilled jobs.
Global Context and Parent Company Support
This investment forms part of Hitachi Energy's global investment program, described as the largest in the industry, through which the company is expanding manufacturing capacity, R&D, engineering, and partnerships to meet unprecedented electricity demand worldwide.
Management Commentary
N Venu, Managing Director & CEO of Hitachi Energy India Ltd., stated: "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 of Transformers Business Unit at 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."
Alignment with Government Initiatives
The investment supports India's "Make in India" vision through local manufacturing, skilled job creation, and supply chain development, contributing to a stronger and more self-reliant energy value chain.
Recent Company Milestones
The press release references recent company achievements including the commissioning of one of the world's largest urban HVDC city center in-feeds in Mumbai, demonstrating the company's ongoing contribution to India's complex energy infrastructure.
Corporate Background
Hitachi Energy India Limited operates as the legal entity for Hitachi Energy in India and is listed on both NSE and BSE. Globally, Hitachi Energy employs over 56,000 people in 60 countries and generates revenues of around $20 billion USD, with over three billion people depending on their technologies.