Hitachi Energy to set up large transformer factory in Gujarat with Rs.2,000-crore capex
- June 12, 2026
Hitachi Energy is investing approximately Rs.2,000 crore to establish a new large power transformer (LPT) factory at Karjan in Vadodara, Gujarat.
This investment is in continuation of the recent announcement made by Hitachi Energy India Ltd during its Q4FY26 results. The investment builds on the company’s 77-year history in India and its commitment to strengthening its manufacturing footprint to support the growing demand for electricity in the country and worldwide, a release by Hitachi Energy said.
Reinforcing “Make in India”
The new large power transformer factory will complement Hitachi Energy India’s existing footprint of power, dry distribution and traction transformer factories in Gujarat state, and transformer insulation and components factories in Mysore and Halol, reinforcing its commitment to the country’s “Make in India” initiative and supporting its ambitious energy transition goals.
Advanced technologies
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 centers, and large-scale industrial applications.
The factory will feature advanced technologies and the highest health, safety, and sustainability standards, ensuring efficient and environmentally responsible operations. 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.
Significant job creation
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, the largest in the industry, through which the company is expanding manufacturing capacity, R&D, engineering, and partnerships to meet unprecedented electricity demand.
Supporting India’s energy goals
“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,” said N Venu, Managing Director & CEO, Hitachi Energy India Ltd.
Contributing to India’s self-reliance
“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,” said Bruno Melles, CEO, Transformers Business Unit, Hitachi Energy.
Growing demand for large power transformers
The Hitachi Energy release quoted a report by Central Electricity Authority suggesting that India will require investments totaling Rs.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 centers, 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, the release added.
Featured illustration (source: Hitachi Energy India) is a 3D virtual view of Hitachi Energy’s planned large power transformer factory at Vadodara in Gujarat