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Hitachi Energy to Invest INR 2,000 Crore in Large Power Transformer Factory in Gujarat

Hitachi Energy has announced an investment of approximately INR 2,000 crore to set up a new large power transformer manufacturing facility in Karjan, Vadodara, with commissioning planned for FY28.

June 12, 2026. By Mrinmoy Dey

Hitachi Energy has announced that the company is investing approximately INR 2,000 crore to establish a new Large Power Transformer (LPT) factory in Karjan, Vadodara, Gujarat.

This investment is in continuation of the recent announcement made by Hitachi Energy India during its FY26 Q4 results. The investment is aimed at strengthening the company’s manufacturing footprint to support the growing demand for electricity in India and worldwide.

According to a report by the Central Electricity Authority, India will require investments totalling INR 7.93 lakh crore in transmission infrastructure to integrate more than 900 GW of non-fossil fuel-based energy by 2035. Against this backdrop, the growing demand for Large Power Transformers, driven by grid expansion, data centres, and industrial electrification, creates a strong need for greater local manufacturing capacity. Hitachi Energy's new factory is expected to assist in meeting India's demand for reliable, efficient, and high-quality power equipment while supporting a stronger and more self-reliant energy value chain, stated the company.

The new large power transformer factory will complement Hitachi Energy India’s existing footprint of power, dry distribution and traction transformer factories in Gujarat, and transformer insulation and components factories in Mysore and Halol.

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. Once operational, it will support applications like high-voltage transmission, HVDC, power generation, AI data centres, and large-scale industrial applications, stated the company.

N Venu, Managing Director and CEO, Hitachi Energy India, 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.”

He further added that the factory will feature advanced technologies and the highest health, safety, and sustainability standards, ensuring efficient and environmentally responsible operations. The Vadodara factory is planned as a LEED-certified site, with a strong focus on energy efficiency, responsible resource use, and reduced environmental impact. Developed as fully digital, it will integrate smart manufacturing technologies and end-to-end digital connectivity to enable data-driven operations, enhance quality and productivity, and ensure consistent and high-performance delivery, stated the company.

Bruno Melles, CEO, Transformers Business Unit, Hitachi Energy, commented, “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 project is expected to create more than 1,000 direct and indirect jobs, supporting local economic development and skills advancement. It forms part of Hitachi Energy's global investment program through which the company is expanding manufacturing capacity, R&D, engineering, and partnerships to meet unprecedented electricity demand.

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