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.

Hitachi Energy India Limited has reported stellar performance for the first quarter, with record-breaking orders and robust revenue growth. The company's strategic focus on balancing operational complexity and efficiency has yielded impressive results across key financial metrics.

Record-Breaking Order Intake

Hitachi Energy India secured all-time high orders of Rs 11,339.20 crores in Q1, representing a staggering 365% year-on-year growth. This exceptional performance has resulted in a record order backlog of Rs 29,135.00 crores, providing strong revenue visibility for the coming quarters.

Strong Revenue Growth and Profitability

The company reported revenue of Rs 1,529.80 crores, marking a 15.3% year-on-year increase. Profit before tax stood at Rs 176.90 crores, while profit after tax reached Rs 131.60 crores. Operational EBITDA improved significantly to Rs 170.20 crores, with a healthy margin of 11.1%.

Key Order Wins

A major contributor to the order book was a High Voltage Direct Current (HVDC) project from Adani Energy Solutions for the Bhadla-Fatehpur 6,000 megawatt transmission line. This project, awarded to a consortium of Hitachi Energy India and BHEL, showcases the company's expertise in advanced power transmission technologies.

Other notable orders included:

• 30 units of 765 kV transformers for POWERGRID
• Various renewable energy projects
• Grid Integration Systems (GIS) for solar and industrial applications
• Rail and metro projects, including transformers and automation solutions

Segment-wise Performance

The transmission segment led order growth with a remarkable 625% increase, followed by the rail and metro segment at 845%. The data center segment also showed strong momentum with a 98% growth. However, the renewable energy segment experienced a temporary decline of 25%.

Export and Service Business

Exports maintained a consistent 25% contribution to the order book, with orders received from Europe, South America, and Asia. The service business, which was carved out as a separate unit from April 1, grew by 90% year-on-year and contributed a high single-digit percentage to the overall order book.

Future Outlook and Investments

Hitachi Energy India remains optimistic about the future, citing the ongoing "energy super cycle" and growth opportunities both locally and globally. The company is investing Rs 2,000.00 crores in capacity expansion across multiple business units to meet the growing demand.

Management expects one to two HVDC projects to be finalized in the current financial year and anticipates two to three HVDC projects annually in coming years to manage India's increasingly complex transmission network.

Conclusion

With its strong order book, improved profitability, and strategic investments in capacity expansion, Hitachi Energy India is well-positioned to capitalize on the growing opportunities in India's power transmission and renewable energy sectors. The company's focus on advanced technologies and sustainable solutions aligns well with the country's energy transition goals, setting the stage for continued growth in the coming years.