Hitachi Energy is investing approximately Rs 20 billion (Rs 20 bn) to establish a new Large Power Transformer (LPT) factory in Karjan, Vadodara, as part of an expansion of its manufacturing footprint in India. The company said the move builds on its 77-year presence in India and follows an earlier disclosure in its fiscal year 2026 fourth-quarter results. The investment was presented as strengthening local manufacturing under the Make in India vision and supporting growing electricity demand.

The project comes against a backdrop of substantial transmission needs identified by the Central Electricity Authority, which estimated that India will require Rs 7.93 trillion (Rs 7.93 tn) in transmission infrastructure to integrate more than 900 gigawatts (GW) of non-fossil fuel energy by 2035. Hitachi Energy positioned the new factory as a response to rising demand for large power transformers driven by grid expansion, data centres and industrial electrification, and as a contribution to a more self-reliant energy value chain.

The factory will complement Hitachi Energy India Limited's existing facilities for power, dry distribution and traction transformers in Gujarat and insulation and components factories in Mysore and Halol. Scheduled for completion in fiscal year 2028, the facility is expected to produce a significant annual volume of power transformers to speed delivery of mission-critical grid equipment and to support applications including high-voltage transmission, high-voltage direct current, power generation, artificial intelligence data centres and large industrial uses. The site was described as planned to be LEED-certified and digitally enabled.

The company indicated the project will integrate advanced technologies and high health, safety and sustainability standards, and that it should create more than 1,000 direct and indirect jobs to support local skills and economic development. The investment forms part of a wider global manufacturing and R&D expansion programme and was framed as reinforcing Hitachi Energy's leadership in transformer equipment while contributing to India's infrastructure and energy transition goals.