Hitachi Energy, a global leader in electrification, will invest approximately ₹2,000 crore to establish a new large power transformer (LPT) manufacturing facility in Karjan, Vadodara, strengthening its manufacturing footprint in India amid rising demand for power infrastructure and grid modernisation.
The investment follows the company’s recent announcement during Hitachi Energy India Ltd’s FY26 fourth-quarter results and builds on its 77-year presence in the country.
Expanding manufacturing capacity
The new facility is aimed at supporting the growing demand for large power transformers driven by grid expansion, renewable energy integration, data centers and industrial electrification.
According to estimates by the Central Electricity Authority, India will require investments of around ₹7.93 lakh crore in transmission infrastructure to integrate more than 900 GW of non-fossil fuel-based energy capacity by 2035.
Against this backdrop, the company believes enhanced domestic manufacturing capacity will be critical to ensuring the availability of reliable and efficient power equipment while supporting India’s energy transition goals.
Factory to support critical applications
Scheduled for completion in FY28, the state-of-the-art facility will manufacture a significant volume of large power transformers annually, helping reduce delivery timelines for mission-critical grid equipment.
Once operational, the factory will cater to applications including high-voltage transmission networks, high-voltage direct current (HVDC) systems, power generation projects, AI data centers and large-scale industrial operations.
The facility will complement Hitachi Energy India’s existing manufacturing network, which includes power, dry distribution and traction transformer factories in Gujarat, as well as transformer insulation and component facilities in Mysore and Halol.
Digital and sustainable facility
The company said the Vadodara plant will incorporate advanced manufacturing technologies and adhere to stringent health, safety and sustainability standards.
Planned as a LEED-certified facility, the factory will focus on energy efficiency, responsible resource utilization and reduced environmental impact. It will also be developed as a fully digital manufacturing site with end-to-end connectivity, enabling data-driven operations, enhanced productivity and improved product quality.
Confidence in India’s energy future
Hitachi Energy India Ltd Managing Director & CEO N Venu, 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.”
Hitachi Energy CEO Transformers Business Unit, Bruno Melles, said, “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.”
Employment and energy transition boost
The project is expected to generate more than 1,000 direct and indirect jobs, contributing to local economic development and skills enhancement.
The investment forms part of Hitachi Energy’s global expansion programme, under which the company is increasing manufacturing capacity, research and development, engineering capabilities and partnerships to address rising electricity demand worldwide.
The company said the investment reinforces its leadership in transformer technologies while supporting the development of a secure, affordable and sustainable energy system.
Strengthening India’s power infrastructure
The new project adds to Hitachi Energy’s growing contribution to India’s power infrastructure development. Among its recent achievements is the commissioning of one of the world’s largest urban HVDC city-centre in-feed projects in Mumbai, supporting the country’s transition toward