Hitachi Energy India Limited is investing approximately Rs 2,000 crore to establish a new Large Power Transformer factory in Karjan, Vadodara, Gujarat. The investment was previously indicated during the company's FY26 fourth-quarter results.
Scheduled for completion in FY28, the new factory will manufacture a significant volume of power transformers annually to enable faster delivery of mission-critical grid equipment. Applications include high-voltage transmission, HVDC, power generation, AI data centres, and large-scale industrial electrification. The factory will complement Hitachi Energy India's existing power, dry distribution, and traction transformer factories in Gujarat, and transformer insulation and components factories in Mysore and Halol.
According to a Central Electricity Authority report, India requires investments totalling Rs 0.08 crore crore in transmission infrastructure to integrate more than 900 GW of non-fossil fuel-based energy by 2035. The growing demand for large power transformers, driven by grid expansion, data centres, and industrial electrification, has created a need for greater local manufacturing capacity.
The Vadodara factory is planned as a LEED-certified facility with a strong focus on energy efficiency and reduced environmental impact. It will be developed as a fully digital site, integrating smart manufacturing technologies and end-to-end digital connectivity for data-driven operations. "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," said Bruno Melles, CEO of Hitachi Energy's Transformers Business Unit.
The project is expected to create more than 1,000 direct and indirect jobs, supporting local economic development and skills advancement. It forms part of Hitachi Energy's global investment programme, through which the company is expanding manufacturing capacity, research and development, engineering, and partnerships to meet growing electricity demand. Recent milestones include the commissioning of one of the world's largest urban HVDC city centre in-feeds in Mumbai.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.