"Hitachi Energy Plans Expansion in India, Local Operations to Meet Rising Power Demand"

Hitachi Energy, a Zurich-based firm specializing in transformers and large-scale power transmitters, is planning to expand its presence in India by opening more global capability centers (GCC) to meet the country's growing energy demand and support the push for renewable energy generation.

With a current GCC in India, the company is exploring new locations in Hyderabad and Pune for its expansion. "We are looking at Hyderabad for our GCC and also looking at Pune. It might take six months to one year," said Venu Nuguri, the Managing Director and CEO of Hitachi Energy's India unit. The expansion could involve either one or both cities, depending on market demand. Nuguri did not disclose the financial details of the planned investment.

The new GCC will operate alongside Hitachi Energy India, but will belong to a separate non-listed Indian entity of Hitachi Energy in Switzerland, Nuguri explained.

India's power demand has been rising steadily, growing by 8 per cent in the fiscal year 2023. This growth has prompted the Indian government to increase energy generation capacity, with a particular focus on renewable sources. The government aims to achieve 500 GW of installed capacity from non-fossil fuel sources by 2030.

The International Energy Agency estimates that India's electricity demand will grow significantly in the coming years, equating to the current consumption of the United Kingdom over the next three years. Nuguri commented on the need for increased generation to meet this demand: "To meet the projected demand, the market needs to generate at least three to four times more than what is currently being done."

Hitachi Energy's order backlog for fiscal year 2023 stood at 7,200 crore rupees ($864.7 million). Nuguri anticipates that the company's order book will grow two to three times more than the market growth, reflecting the increased demand for energy infrastructure.

BS