SynopsisHitachi Energy India is set to inject Rs 2,000 crore into expanding its manufacturing capabilities, driven by the surging demand for power from electric vehicles, renewable energy sources and data centers. This initiative positions the company at the forefront of Asia's second-largest economy, anticipating significant growth opportunities.AgenciesHitachi Energy India Mumbai: Rising power demand, an evident push toward expanding the remit of electrical applications, initiatives to boost renewable energy and data centres have helped create a multi-year growth opportunity for Hitachi Energy India, which has announced a Rs 2,000-crore manufacturing expansion program in Asia’s no. 2 economy.Hitachi Energy India is the domestic arm of the Zurich-based Hitachi Energy, which makes transformers and large-scale power transmitters.Venu Nuguri, MD & CEO, India and APAC, Hitachi Energy, told ET that the world is entering an “electricity era” as power demand rises sharply from electric mobility, renewable integration, industrial electrification and data centres.Also read | KEC International bags orders worth Rs 1,300 cr in India, overseasA key growth area for Hitachi Energy is the High Voltage Direct Current (HVDC) technology, described as a “power superhighway” capable of transmitting up to 6,000 MW through a single corridor over long distances without lower losses.“The electrons are replacing the molecules,” said Venu, adding that demand for advanced grid technologies, digital systems and high-voltage transmission infrastructure is going up as the complexity of modern electricity grids has increased significantly.The company has secured over Rs 20,000 crore worth of HVDC orders thus far and is executing two mega HVDC projects - Khavda-Nagpur and Bhadla-Fatehpur - of 6GW each.“HVDC is poised to be a solid theme with a long runway for growth with only a handful of players who possess the expertise to execute such complex projects,” said IDBI Capital in a report in April, adding that a robust Rs 1 lakh crore HVDC pipeline is expected to be awarded in India over the next 2-3 years.Hitachi Energy reported the January-March quarter earnings on Monday. Net profit jumped 80% year-on-year to Rs 330.5 crore in the March quarter from Rs 184 crore a year ago. Revenue from operations increased 46.2% to Rs 2,754.1 crore, compared with Rs 1,883.7 crore a year ago.Fresh CapexThe company also approved an additional Rs 2,000 crore capital expenditure plan for its new power transformer manufacturing facility in Vadodara. This investment is in addition to the capital expenditure announced in 2024, taking the cumulative capex to Rs 4,000 crores, the company said.Also read | L&T wins orders from JSW Utkal Steel, IWAI, others“We are investing because the demand visibility is strong and structural. This is not a one- or two-year cycle,” Venu said, adding that the demand for transformers is being driven not only by transmission and renewable energy projects but also by the rapid expansion of data centres in India.India’s data centre capacity, currently estimated at less than 2 GW, could rise to 13-18 GW by 2030, creating massive demand for power equipment and grid infrastructure, he said.The company which derives nearly 30% of its revenues from exports said the geopolitical tensions in West Asia have led to elevated freight costs, shipping disruptions and raw material inflation. However, most of the company’s contracts include price variation clauses that help offset rising input costs.While Hitachi Energy plans to hire around 1,000 employees over the next few years, its global capability centre in Chennai is adding nearly 1,000 people annually.The company’s scrip ended at Rs 35,979.95, up 1.04% on the BSE on Tuesday.Read More News on...moreless