Hitachi Energy, the Zurich-based company specializing in transformers and large-scale power transmitters, is gearing up to expand its footprint in India. The move comes in response to India’s growing energy demand and its ambitious plans to boost renewable energy generation.
Venu Nuguri, Managing Director and CEO of Hitachi Energy’s India unit, revealed that the company is eyeing Hyderabad and Pune for establishing new Global Capability Centers (GCC) in India. “It might take six months to one year,” Nuguri commented on the timeline for the new centers.
The decision on the location of the new GCC will depend on demand, and it could potentially be in either or both cities. While Nuguri did not disclose the financial details of the investment, he emphasized the significance of the GCCs as low-cost, offshore facilities that will complement Hitachi Energy India’s operations.
The new GCC will operate as part of a separate non-listed Indian entity of Hitachi Energy in Switzerland. This strategic move underscores Hitachi Energy’s commitment to enhancing its local operations and supporting India’s energy sector.
India has been actively pushing for a transition to green energy, with the government rolling out incentives to achieve 500 GW of installed capacity through non-fossil fuel sources by 2030. In line with these efforts, India’s power consumption witnessed an 8% growth in fiscal year 2023.
The International Energy Agency (IEA) projects that India’s electricity demand will increase significantly over the next three years, roughly equivalent to the current consumption of the United Kingdom.
“To meet the projected demand, the market needs to generate at least 3-4 times more than what is currently being done. Accordingly, our order book will also grow two or three times higher than market growth,” Nuguri stated.
As of fiscal year 2023, Hitachi Energy reported an order backlog of 72 billion rupees ($864.7 million), reflecting the company’s robust position in India’s growing energy sector.
Hitachi Energy’s expansion plans in India highlight the company’s confidence in the country’s energy market and its commitment to supporting India’s renewable energy goals. With the new GCCs set to bolster Hitachi Energy’s local capabilities, the company is well-positioned to capitalize on the opportunities presented by India’s evolving energy landscape.