Hitachi Energy India to invest Rs 2,000 crore in Gujarat transformer plant
Hitachi Energy India Limited has announced an investment of around Rs 2,000 crore to establish a new large power transformer (LPT) manufacturing facility at Karjan in Vadodara, Gujarat.
The investment, first indicated during the company’s FY26 fourth quarter results announcement in May 2026, is aimed at expanding domestic manufacturing capacity for grid equipment under the “Make in India” initiative. The facility is scheduled for completion in FY28.
Manufacturing scope
Once operational, the factory will manufacture large power transformers for high-voltage transmission systems, High Voltage Direct Current (HVDC) corridors, power generation integration, artificial intelligence (AI) data centres, and large-scale industrial applications.
The facility will incorporate advanced manufacturing technologies and end-to-end digital connectivity. The company also plans to develop the site as a Leadership in Energy and Environmental Design (LEED)-certified facility with a focus on energy efficiency and lower environmental impact.
The project is expected to generate more than 1,000 direct and indirect jobs.
Transmission demand
According to the Central Electricity Authority (CEA), India will require investments of Rs 7.93 lakh crore in transmission infrastructure to integrate over 900 GW of non-fossil fuel-based energy capacity by 2035.
Hitachi Energy stated that rising demand for large power transformers is being driven by grid expansion, data centres, and industrial electrification, increasing the requirement for domestic manufacturing capacity.
The new Vadodara plant will add to the company’s existing manufacturing presence in Gujarat, which includes power, dry distribution, and traction transformer factories. The company also operates transformer insulation and component manufacturing facilities in Mysore and Halol.
Management comments
N Venu, Managing Director and Chief Executive Officer (CEO) of Hitachi Energy India Ltd., stated that the investment reflects the company’s confidence in India’s energy sector growth and manufacturing potential.
Bruno Melles, CEO of the Transformers Business Unit at Hitachi Energy, stated that India remains one of the fastest-growing energy markets globally and that the new facility will strengthen the company’s domestic manufacturing capabilities.
Financial context
The announcement follows the company’s FY26 fourth quarter financial results reported in May 2026.
Net profit increased 79.7% year-on-year (YoY) to Rs 330.5 crore in Q4 FY26, compared to Rs 183.9 crore in Q4 FY25. Revenue from operations rose 46.2% YoY to Rs 2,754.1 crore from Rs 1,883.7 crore in the corresponding quarter of the previous year.
During the earnings announcement, the board approved an additional capital expenditure of Rs 2,000 crore for manufacturing capacity expansion, including the new LPT facility in Gujarat.
The transformer business is part of Hitachi Energy’s broader global investment programme covering manufacturing expansion, research and development (R&D), engineering, and partnerships to support rising electricity demand.
Recent developments
Hitachi Energy recently commissioned one of the world’s largest urban HVDC city centre infeeds in Mumbai as part of its transmission infrastructure portfolio in India.
