Last year, the Indian government introduced incentives to facilitate the transition to green energy, with a target of achieving 500 GW of installed capacity from non-fossil fuel sources by 2030. In line with this initiative and the increasing demand for energy, particularly in the renewable sector, Hitachi Energy is planning to establish additional global capability centers in India to bolster its local operations.
Hitachi Energy, headquartered in Zurich, specializes in manufacturing transformers and large-scale power transmitters. The company currently operates a Global Capability Center (GCC) in India, where the surge in power demand has prompted the government to enhance energy generation efforts, including the expansion of renewable energy sources.
“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 the company’s India unit.
The center’s location, whether in one or both cities, will be determined by demand, Nuguri explained, though he didn’t disclose financial specifics of the investment.
The new Global Capability Center (GCC), operating as a cost-effective offshore facility, will collaborate with Hitachi Energy India. However, it will function as a distinct entity under Hitachi Energy’s Swiss headquarters.
India’s government introduced incentives last year to encourage the transition to green energy, aiming for 500 GW of installed capacity from non-fossil fuel sources by 2030.
With India’s power consumption growing by 8% in fiscal year 2023, the International Energy Agency predicts that India will add electricity demand equivalent to the current consumption of the United Kingdom over the next three years.
“To meet the projected demand, market needs to generate at least 3-4 times than what is being done. And accordingly, our order book will also grow two or three times, higher than market growth,” Nuguri said.
Nuguri stated that the company’s order backlog stood at 7,200 crore rupees ($864.7 million) as of the fiscal year 2023.
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