Hitachi Energy India has announced plans to invest ₹20 billion (~$209.91 million) to establish a new large power transformer factory in Karjan, Vadodara, Gujarat.

The facility will add manufacturing capacity for large power transformers used in transmission networks and other high-voltage power applications. Hitachi Energy said the factory will support applications including high-voltage transmission, high-voltage direct-current systems, power generation, artificial-intelligence data centers, and large industrial facilities.

The factory is scheduled for completion in fiscal year 2028. Once operational, it is expected to manufacture a significant volume of power transformers annually.

The project will complement Hitachi Energy India’s existing transformer-related manufacturing footprint in Gujarat, Mysore, and Halol. The company currently has power, dry distribution, and traction transformer factories in Gujarat, as well as transformer insulation and components factories in Mysore and Halol.

Hitachi Energy India attributed the investment to rising demand for grid equipment in India and overseas. Citing a Central Electricity Authority report, the company said India will require investments of ₹7.93 trillion (~$83.23 billion) in transmission infrastructure to integrate more than 900 GW of non-fossil-fuel-based energy capacity by 2035.

Hitachi Energy India said 65% of its energy consumption came from renewable sources during the financial year 2024 and that it utilized 100% fossil-free electricity wherever possible across its operations.

During the financial year 2025, the company secured orders worth ₹181.74 billion (~$1.91 billion), up from ₹55.36 billion (~$581.13 million) in the previous year. Hitachi Energy India said the increase was driven in part by demand from the renewable energy, transmission, e-mobility, and battery storage sectors.

Among its major renewable energy-related contracts, Hitachi Energy India cited the Khavda-Nagpur high-voltage direct current transmission project awarded by Power Grid Corporation of India. The project is designed to transmit renewable energy generated in Gujarat’s Khavda region to the industrial hub of Nagpur in Maharashtra.

Last February, a consortium of Bharat Heavy Electricals and Hitachi Energy India received a letter of intent from Rajasthan Part I Power Transmission to set up high-voltage direct current line commutated converters (HVDC LCC) terminal stations in Rajasthan and Uttar Pradesh.

In April 2024, Hitachi Energy, a subsidiary of Japan-based conglomerate Hitachi, announced it would ramp up its global transformer manufacturing capacity with a $1.5 billion investment by 2027, as a long queue for grid interconnections, particularly from renewables, is driving up demand.