Hitachi Energy has made a significant strategic move, with its board approving the demerger of its Durgapur unit to JSW Energy. This decision marks a notable shift in the company's operational structure and assets.

Key Details of the Demerger

• Approval: The board of Hitachi Energy has given its approval for the demerger of the Durgapur unit.
• Recipient: JSW Energy will acquire the demerged unit.
• Transaction Structure: The deal will be executed through a share-swap arrangement.
• Asset Transfer: The transaction involves the transfer of Hitachi Energy's Durgapur operations to JSW Energy.
• Compensation: In exchange for the Durgapur unit, Hitachi Energy will receive shares of JSW Energy.

Implications of the Move

This strategic decision could have several implications for both companies involved:

• For Hitachi Energy: The demerger may allow the company to streamline its operations and focus on core business areas.
• For JSW Energy: The acquisition of the Durgapur unit could potentially expand JSW Energy's operational capacity and market presence.

Market Response

Investors and market analysts will likely be watching closely to see how this demerger affects the financial performance and market positioning of both Hitachi Energy and JSW Energy in the coming months.

The share-swap arrangement suggests that shareholders of Hitachi Energy may receive shares in JSW Energy as part of the deal, though specific details of the share-swap ratio have not been provided in the current announcement.

As this development unfolds, more information may become available regarding the valuation of the Durgapur unit, the share-swap ratio, and the expected timeline for completing the demerger process.

Stakeholders are advised to stay tuned for further announcements from both companies as they work towards finalizing and implementing this significant corporate restructuring.

Hitachi Energy India Limited has announced a significant expansion of its Mysuru facility, marking a major milestone in the global transformer industry. The company is set to establish the world's first fossil-free production line for transformer-grade pressboard, a critical component in power and distribution transformers.

INR 300 Crore Investment to Double Capacity

The expansion, part of Hitachi Energy India's broader INR 2,000 crore investment plan for the next 4-5 years, involves an investment of INR 300 crores in its insulation and components business. This strategic move aims to double the facility's capacity to produce EHV class high-quality pressboard and laminated board.

Pioneering Sustainability in Manufacturing

In a groundbreaking initiative, Hitachi Energy India will replace the fossil fuel boiler at its Mysuru site, transforming it into an ultra-low carbon pressboard facility. This aligns with the company's commitment to sustainability and reducing its carbon footprint in manufacturing processes.

Meeting Global Demand

N Venu, Managing Director & CEO of Hitachi Energy India, emphasized the expansion's role in supporting India's growing grid and renewable energy integration while strengthening the local energy manufacturing ecosystem. The expanded facility will not only serve the Indian market but also cater to global markets including the U.A.E., Oman, Kuwait, Saudi Arabia, Turkey, Indonesia, South Korea, and South Africa.

Addressing Supply Chain Challenges

Helmut Bockshammer, Global Product Group Manager for Transformers Insulation and Components at Hitachi Energy, highlighted the importance of localizing pressboard production. This move is expected to secure supply chains, boost reliability, and support the shift to renewable energy sources.

Project Timeline and Impact

The expansion project is scheduled for completion by mid-2027, marking a significant step in Hitachi Energy's long-term growth strategy in India. It addresses the current gap between demand and availability of transformers and components both in India and globally.

Innovative Approach to Power Grid Stability

As the demand for electricity continues to grow exponentially, Hitachi Energy's expansion is a timely response to the need for innovation in managing variability and ensuring grid stability. The high-quality insulation material produced at the facility will play a crucial role in keeping the flow of electricity safe and preventing internal short circuits in transformers.

This expansion by Hitachi Energy India represents a significant leap forward in sustainable manufacturing practices for the power sector, positioning the company at the forefront of the global transition to cleaner energy solutions.