Hitachi Energy Invests INR 2,000 Crore in New Transformer Facility to Support India’s Expanding Power Grid

Hitachi-Energy
Image Courtesy: Hitachi Energy

Hitachi Energy has announced an investment of approximately INR 2,000 crore to establish a new Large Power Transformer (LPT) manufacturing facility in Karjan, Vadodara, reinforcing its long-term commitment to India’s power infrastructure growth and energy transition ambitions. The investment follows the company’s recent expansion plans disclosed during its FY26 fourth-quarter results and reflects growing demand for advanced grid equipment as India accelerates renewable energy integration and transmission network development.

India’s power sector is entering a period of unprecedented expansion. According to projections by the Central Electricity Authority, the country will require substantial transmission infrastructure investments to accommodate more than 900 GW of non-fossil-fuel energy capacity by 2035. This transition is creating rising demand for high-capacity transformers that support renewable integration, industrial electrification, high-voltage transmission systems, and rapidly growing digital infrastructure.

The new manufacturing facility is scheduled for completion by FY28 and will significantly enhance domestic production capacity for large power transformers. The plant will complement Hitachi Energy’s existing manufacturing footprint in Gujarat and Karnataka, strengthening the company’s ability to deliver critical power equipment for utilities, industries, transportation systems, data centres, and renewable energy projects.

Designed as a fully digital manufacturing hub, the facility will incorporate advanced automation, smart production technologies, and integrated digital systems to improve efficiency, productivity, and quality. The plant will also be developed with a strong sustainability focus and is planned as a LEED-certified facility emphasizing energy efficiency, responsible resource utilization, and reduced environmental impact.

N Venu, Managing Director and CEO of Hitachi Energy India Ltd., said the investment demonstrates the company’s confidence in India’s long-term energy growth story. He noted that expanding local manufacturing capabilities will support national infrastructure goals while generating skilled employment opportunities and strengthening the domestic energy ecosystem.

The project is expected to create more than 1,000 direct and indirect jobs, contributing to local economic development and workforce advancement. The facility will manufacture transformers for a range of critical applications, including high-voltage transmission networks, HVDC projects, power generation facilities, industrial operations, and next-generation digital infrastructure.

The expansion forms part of Hitachi Energy’s broader global investment strategy aimed at increasing manufacturing capacity, engineering capabilities, and innovation to meet rising worldwide electricity demand. By strengthening local production and supply chain resilience, the company aims to support India’s ambitions of building a secure, sustainable, and self-reliant energy future while reinforcing its position as a key partner in the country’s ongoing grid modernization journey.