Global electrification leader Hitachi Energy has announced plans to invest approximately ₹2,000 crore in a new Large Power Transformer (LPT) manufacturing facility in Karjan, Vadodara, Gujarat. The investment marks one of the company’s largest manufacturing commitments in India and is aimed at supporting the country’s rapidly growing electricity infrastructure needs, clean energy ambitions, and industrial expansion.
- Rising Power Demand Driving Need for Grid Infrastructure
- New Gujarat Facility to Strengthen Domestic Manufacturing
- Supporting India’s Energy Transition
- Designed for Sustainability and Digital Manufacturing
- Strengthening India’s Position as a Global Manufacturing Hub
- Job Creation and Economic Impact
- Part of Hitachi Energy’s Global Growth Strategy
- Building on India’s Clean Energy Progress
- Outlook
The announcement follows Hitachi Energy India Limited’s recent FY26 fourth-quarter results and reinforces the company’s long-standing commitment to India’s energy sector, where it has maintained operations for more than seven decades.
Rising Power Demand Driving Need for Grid Infrastructure
India’s electricity network is undergoing a significant transformation as the country accelerates the deployment of renewable energy and modernizes its transmission infrastructure.
According to estimates by the Central Electricity Authority (CEA), India will require investments of nearly ₹7.93 lakh crore in transmission infrastructure to integrate more than 900 GW of non-fossil fuel-based energy capacity by 2035.
This growing demand is increasing the need for advanced power equipment, particularly large power transformers that play a critical role in transmitting electricity across long distances and supporting grid stability.
The expansion of renewable energy projects, industrial electrification, urban infrastructure, and energy-intensive sectors such as AI-driven data centres is further driving demand for reliable transformer manufacturing capacity within the country.
New Gujarat Facility to Strengthen Domestic Manufacturing
The new transformer manufacturing plant will complement Hitachi Energy India’s existing manufacturing ecosystem, which includes power, traction and dry-type transformer facilities in Gujarat, as well as transformer insulation and component manufacturing operations in Mysore and Halol.
Scheduled for completion by FY28, the facility will produce a significant volume of large power transformers annually, helping reduce lead times for critical grid infrastructure projects while supporting India’s “Make in India” initiative.
The transformers manufactured at the facility will serve a range of strategic applications, including:
- High-voltage transmission networks
- High Voltage Direct Current (HVDC) systems
- Renewable energy integration
- Power generation projects
- AI and hyperscale data centres
- Industrial electrification projects
Supporting India’s Energy Transition
The investment aligns closely with India’s long-term energy transition goals and efforts to build a more resilient and self-reliant power infrastructure ecosystem.
Commenting on the announcement, 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.”
The company believes expanding domestic manufacturing capacity will help strengthen India’s energy value chain while improving access to high-quality power equipment needed to support economic growth and decarbonization efforts.
Designed for Sustainability and Digital Manufacturing
Sustainability will be a core feature of the new manufacturing facility.
Hitachi Energy plans to develop the Vadodara site as a LEED-certified facility, incorporating advanced environmental and energy-efficiency standards.
The plant will focus on:
- Responsible resource utilization
- Reduced environmental impact
- Energy-efficient operations
- Smart manufacturing technologies
- Digital production systems
- End-to-end data connectivity
The fully digital facility will leverage advanced manufacturing technologies to improve productivity, quality, operational efficiency, and supply chain visibility.
By integrating digitalization and sustainability from the outset, the company aims to create a future-ready manufacturing hub aligned with global best practices.
Strengthening India’s Position as a Global Manufacturing Hub
India continues to emerge as one of the world’s fastest-growing energy markets, driven by rising electricity demand, industrial expansion, urbanization, and clean energy investments.
According to Bruno Melles, CEO of Hitachi Energy’s Transformers Business Unit:
“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.”
The investment is expected to further strengthen India’s position as a strategic manufacturing destination for advanced power equipment and energy technologies.
Job Creation and Economic Impact
Beyond manufacturing expansion, the project is expected to deliver significant socio-economic benefits.
Hitachi Energy estimates the facility will generate more than 1,000 direct and indirect jobs, creating opportunities across engineering, manufacturing, logistics, operations, and support services.
The project is also expected to support local suppliers, contractors, and associated industries, contributing to regional economic development and workforce skill enhancement.
Part of Hitachi Energy’s Global Growth Strategy
The Gujarat facility forms part of Hitachi Energy’s broader global investment programme, which focuses on expanding manufacturing capacity, strengthening engineering capabilities, advancing research and development, and building strategic partnerships.
The company is investing globally to address growing electricity demand driven by electrification, digitalization, renewable energy adoption, and emerging technologies such as artificial intelligence.
As countries worldwide seek to modernize their energy infrastructure while reducing carbon emissions, demand for advanced grid equipment and transformer technologies continues to rise.
Building on India’s Clean Energy Progress
Hitachi Energy has played a significant role in several major infrastructure projects across India, including the commissioning of one of the world’s largest urban HVDC city-centre power infeed systems in Mumbai.
The company continues to support India’s efforts to improve grid reliability, integrate renewable energy, and strengthen energy security through advanced transmission technologies and electrification solutions.
Outlook
With a ₹2,000 crore investment, a new state-of-the-art manufacturing facility, and a strong focus on sustainability and digital innovation, Hitachi Energy is positioning itself at the centre of India’s energy transformation.
As the country accelerates renewable energy deployment, grid modernization, and industrial electrification, investments in critical power infrastructure will become increasingly important.
The new Vadodara transformer factory is expected to play a key role in supporting India’s clean energy ambitions while strengthening domestic manufacturing, creating skilled jobs, and enabling a more resilient and sustainable power system for the future.
