Hitachi Energy India Announces INR 20 Billion Investment for New Transformer Factory in Vadodara

VADODARA, INDIA — June 12, 2026 — Hitachi Energy India Limited has formally finalized a domestic capital blueprint to invest approximately INR 20 billion (₹2,000 crore) to establish a greenfield large power transformer (LPT) factory in Karjan, Vadodara.

The Board of Directors approved the strategic expansion to dramatically scale up local manufacturing capacity. The move directly aligns with a massive transmission infrastructure pipeline required to manage India's rapid integration of utility-scale non-fossil fuel energy.

The decision positions the National Stock Exchange (NSE) listed company to reinforce its structural grid dominance. It elevates its total capital expenditure commitment to INR 40 billion across its regional operational hubs.

Meeting India’s Strained Transmission Infrastructure Demands

According to official projections distributed by India's Central Electricity Authority (CEA), the nation requires an estimated INR 7.93 lakh crore in targeted transmission infrastructure upgrades by 2035. This is necessary to integrate more than 900 gigawatts (GW) of non-fossil fuel-based energy source generation into the national grid.

Large power transformers serve as critical components in this transition. They scale electrical voltage thresholds across long-distance, high-voltage direct current (HVDC) corridors.

The current domestic supply chain faces persistent capacity bottlenecks. This is caused by soaring demand from state utilities, large-scale industrial electrification projects, and power-hungry artificial intelligence (AI) data centers.

+------------------------------------+------------------------------------+
| Metric                             | Details                            |
+------------------------------------+------------------------------------+
| New Facility Location              | Karjan, Vadodara, Gujarat   |
| Current Phase Investment           | INR 20 Billion (₹2,000 Crore) |
| Total Cumulative Capex             | INR 40 Billion (₹4,000 Crore) |
| Target Operational Timeline        | Fiscal Year 2028 (FY28)      |
+------------------------------------+------------------------------------+

Financial Momentum and Record Order Backlog

The investment announcement follows strong financial metrics released by Hitachi Energy India for the fiscal year ended March 31, 2026 (FY26). Driven by aggressive execution across core utility and product lines, the company's full-year operational revenue grew 27.6% to INR 8,147.7 crore. Meanwhile, profit after tax (PAT) surged 157.3% to INR 987.8 crore.

The company closed the financial year with an all-time high unexecuted order book backlog of INR 29,555.3 crore. This offers multi-year revenue visibility for upcoming quarters.

Rising Data Center Power Inflows

A primary driver behind this order book momentum is the localized data center real estate boom. Managing Director and CEO N Venu recently noted that the company is actively deploying a comprehensive "grid-to-rack" electrical framework. This strategy targets 30% of total infrastructure procurement spending within India's data center industry. This expands on its historical addressable product range of 10% to 15%.

Official Sources Section

The financial parameters and project details summarized in this dispatch are corroborated by official corporate press releases, statutory regulatory filings submitted under SEBI compliance guidelines to the National Stock Exchange of India (NSE), and disclosures from Hitachi Energy India Investor Relations.

Quote Section

Commenting on the deployment during the corporate earnings review, N Venu, Managing Director and CEO of Hitachi Energy India Limited, stated:

"The sustained focus on operational efficiency and effective order execution helped the Company to maintain its growth momentum. A strong order backlog and long-term planning have sustained the growth momentum even amid a volatile landscape."

In the formal statutory communications transmitted by General Counsel and Company Secretary Poovanna Ammatanda, officials noted:

"The new large power transformer factory will complement Hitachi Energy India Limited's existing footprint of power, dry distribution, and traction transformer factories in Gujarat state. Scheduled for completion in FY28, the new state-of-the-art transformer factory will manufacture a significant volume of power transformers annually to enable faster delivery of mission-critical grid equipment."

Why It Matters

For industrial consumers, energy utilities, and stock market investors, Hitachi Energy's major manufacturing expansion helps resolve multi-month lead time delays currently plaguing heavy power equipment procurement.

By building out local production facilities in Vadodara, the company advances the "Make in India" initiative for heavy electronics. It reduces reliance on imports for specialized transformer insulation, and insulates the domestic power grid from global equipment supply chain volatility.

Furthermore, the expansion accelerates execution capabilities for large green energy zones, such as the Khavda renewable energy park.

Key Facts at a Glance

• Capital Allocation: INR 20 billion earmarked exclusively for the greenfield Karjan facility.

• Industrial Focus: Manufacturing specialized, high-capacity Large Power Transformers (LPTs).

• Application Sectors: Built to supply high-voltage transmission, HVDC links, and AI data centers.

• Operational Date: Construction and testing validations are tracking toward an FY28 completion deadline.

FAQ Section

Where exactly is Hitachi Energy India constructing the new factory?

The new greenfield facility is being constructed in Karjan, located within the Vadodara district of Gujarat, complementing existing regional plants.

What products will the Vadodara factory manufacture?

The facility will focus primarily on manufacturing high-volume Large Power Transformers (LPTs) optimized for heavy transmission, data networks, and industrial use cases.

How does this impact the company's long-term spending plans?

This investment brings the company's total cumulative capital expenditure commitment in India up to INR 40 billion across its active production centers.

Source:

• National Stock Exchange of India Corporate Archive

• Hitachi Energy Global Press Room

Feature Summary

Hitachi Energy India Limited has announced a key INR 20 billion investment to establish a greenfield large power transformer manufacturing plant in Vadodara, Gujarat. Set for completion in FY28, the expansion targets crucial transmission infrastructure demand emerging from India's renewable energy transition and data center boom.