Energy solutions provider Siemens Energy has approved an investment of approximately ₹20.6 billion (~$226.33 million) through internal accruals to set up a 30,000 MVA power transformer factory.

The facility is expected to become operational by the financial year (FY) 2030 to FY 2032.

Siemens stated that it is setting up the transformer factory to cater to the high and increasing demand for large power transformers domestically and globally.

Voltage transformers were among the 73 items listed by the Central Electricity Authority (CEA) for localized production.

India’s transmission and distribution sector has relied heavily on imports for critical equipment, such as transformers and tower parts. Stakeholders have highlighted growing stress in the power system supply chain, with supply falling short of demand for components such as transformers, control relay panels, tower parts, insulators, and gas-insulated switchgear. Longer lead times in procuring these components are causing delays in transmission and power generation projects.

Transformer supply crunch is not a problem limited to India alone. An August 2025 Wood Mackenzie report said power transformers and distribution transformers in the U.S. are currently in a supply deficit of 30% and 6%, respectively, based on annual supply and demand estimates.

Many Indian companies have entered the power transformer segment to help address the growing domestic and global energy demands, as well as the additional requirements of data centers.

In January this year, Mumbai-based engineering conglomerate, CG Power and Industrial Solutions, a subsidiary of the Murugappa Group, won a ₹9 billion (~$99.07 million) order from Tallgrass Integrated Logistics Solutions, U.S., to supply power transformers for a large-scale data center project. The contract is the company’s largest-ever single order.

In May 2025, Solar module manufacturer Waaree Energies announced it would acquire transformer manufacturer Kamath Transformers and independent power producer  Green New Delhi Forever Energy at a cumulative cost of over ₹2.93 billion (~$34.25 million). The Kamath Transformers transaction is part of Waaree Energies’ business expansion plans.