Executive Summary
Hitachi Energy India has announced a significant expansion of its manufacturing footprint with an investment of approximately ₹2,000 crore to establish a new greenfield large power transformer factory in Karjan, Vadodara, Gujarat. This facility, which further solidifies Gujarat’s position as a “second home” for Fortune 500 industrial leaders, is designed to manufacture high-capacity transformers and power quality solutions to support the rapid integration of renewable energy and large-scale industrial electrification.
Factory Details & Technology Focus
The new facility in Karjan is scheduled for completion and commissioning by the end of 2028 (FY2027-28). The investment is strategically partitioned to address specific grid requirements: ₹1,600 crore is dedicated to High-Voltage Power Transformers, adding 30 GVA of capacity, while the remaining ₹400 crore is allocated to two lines of power quality solutions.
With this expansion, the company’s existing transformer capacity of 35 GVA is projected to surpass 70 GVA by the end of FY29. The factory will serve several mission-critical applications:
- High-Voltage Direct Current (HVDC) systems: Supporting long-distance, high-efficiency power transmission.
- Artificial Intelligence (AI) Data Centers: Addressing unprecedented power loads that are now surpassing 1GW. These high-capacity transformers are critical for maintaining “voltage ride-through” stability, preventing load disconnection during grid transient disturbances.
- High-voltage transmission and power generation: Expanding the reach of the Bulk Power System (BPS).
- Large-scale industrial projects: Catering to the heavy electrification needs of the cement, steel, and refinery sectors.
The plant is designed as a LEED-certified digital facility, utilizing smart manufacturing and end-to-end digital connectivity. These data-driven operations are intended to ensure consistent high-performance delivery and reduced environmental impact.
Economic & Employment Impact
This ₹2,000 crore commitment, initiated following the momentum of the Vibrant Gujarat Summit, brings Hitachi Energy India’s cumulative capital expenditure in the country to ₹4,000 crore. The investment is expected to create over 1,000 direct and indirect jobs and strengthen local supply chains, particularly for Micro, Small, and Medium Enterprises (MSME) in the Vadodara region.
Beyond industrial growth, the project integrates social responsibility into its local operations. During the recent bhoomi pujan ceremony, the company demonstrated its social license to operate by donating an ambulance to Jamanabai General Hospital through its CSR fund. The project aligns with the national “Make in India” initiative, aiming to establish the region as a primary hub for energy transition technologies and supporting India’s goal to integrate 900 GW of non-fossil energy by 2035.
Corporate Statement
The leadership of Hitachi Energy has emphasized the long-term strategic role this facility will play in the global energy value chain.
N Venu (Managing Director and CEO, Hitachi Energy India Limited): “This new facility will be a ‘digital-first’ transformer factory that will accelerate the integration of renewable energy through high-end manufacturing and establish India as a global launchpad for transformers.”
Bruno Melles (Global CEO of Hitachi Energy’s Transformer Business): “With a rich legacy of more than 75 years in India, the company aims to operationalize a new state-of-the-art factory by 2028, which will further strengthen the ‘Make in India’ initiative and focus on technology localization.”
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