 "What's driven a 200% rally in this power tech co in 2024 so far? Details")
Shares of Hitachi Energy India hit a new high of Rs 15,626.10, as they rallied 7 per cent on the BSE in Thursday’s intraday trade on a strong outlook.
In the past three trading days, the stock of the power technology firm has surged 15 per cent after the company announced its plans to invest around Rs 2,000 crore to expand its capacity, portfolio and talent base.
In the past three trading days, the stock of the power technology firm has surged 15 per cent after the company announced its plans to invest around Rs 2,000 crore to expand its capacity, portfolio and talent base.
Thus far in the calendar year 2024, the stock price of Hitachi Energy India has zoomed nearly 200 per cent from the level of Rs 5,250 at the end of calendar year 2023. In comparison, the BSE Sensex was up 13 per cent during the same period.
To mark 75 years of Hitachi Energy's presence in India, the company plans to invest around Rs 2,000 crore over the next four to five years to increase production capacities for large and small power transformers, dry and traction transformers, high voltage direct current (HVDC) and components and network control solutions offerings.
The capacity of the traction transformers factory will also be boosted to support the modernisation of the Indian railway network, the company said. This investment will bolster the manufacturing capacity of Hitachi Energy India's production facilities.
Additionally, plans are underway to expand the network control solutions offering and develop and manufacture localised Grid eXpand and Grid eMotion. The company will also launch its maiden medium voltage offering—REF650—in the Indian market. Furthermore, concerted efforts will be made to nurture the supplier base in India, for India and the world, the company said.
India’s installed power capacity is expected to reach 616 GW by 2027, and increase to 900 GW by 2032, from its current capacity of 442 GW as of March 2024.
More From This Section
Hitachi Energy India’s comprehensive electrification portfolio, including a range of Transmission and Distribution (T&D) solutions, HVDC transmission corridors and innovative transformers, power quality products and automation solutions, align with the requirements for efficient power evacuation from renewable energy sources and making grids flexible and reliable.
The management said the company is well-positioned to fulfill the demand arising from greater investments in capacity enhancement and digitalisation by utilities, manufacturing, rail, e-mobility, and data centers.
India has a potential for 5X data center capacity expansion to fuel digital transformation and the country requires an additional 1.7-3.6 GW data center capacity.
Furthermore, based on the estimate of 30 per cent market penetration for electric vehicles (EV) in India by 2030, around 100,000 EV chargers would be needed by 2030, according to the company.
Furthermore, based on the estimate of 30 per cent market penetration for electric vehicles (EV) in India by 2030, around 100,000 EV chargers would be needed by 2030, according to the company.
Hitachi Energy India, in its FY24 annual report, said as per the Central Electricity Authority (CEA), India requires a substantial investment of Rs 4.75 trillion by 2027 to develop its transmission infrastructure, including lines, substations, and reactive compensation.
Goldman Sachs estimates that the transmission capex is expected to have the second largest share of over $500 billion of the total energy transition capex requirement of $1.7 trillion over the next 25 years. This presents a significant opportunity for the company’s core T&D business.
Goldman Sachs estimates that the transmission capex is expected to have the second largest share of over $500 billion of the total energy transition capex requirement of $1.7 trillion over the next 25 years. This presents a significant opportunity for the company’s core T&D business.
Currently, half of all HVDC links in India transmit power with Hitachi Energy technologies. With one HVDC project expected every year and two HVDC projects to be awarded in the next 12 months, the company is well-prepared to meet such projects with proven expertise enabled by local manufacturing capacity, the management said.
Hitachi Energy India has been a long-standing trusted partner for India's transport sector; it offers high-tech products and solutions for electrification of railways, metro, high-speed rail and e-mobility projects.
With a goal of 100 per cent rail electrification, rolling stock upgrade, and 1,058 km of metro rail network planned in 27 cities offering an additional area of play, the company sees immense potential to further enable clean mobility in India, it added.
With a goal of 100 per cent rail electrification, rolling stock upgrade, and 1,058 km of metro rail network planned in 27 cities offering an additional area of play, the company sees immense potential to further enable clean mobility in India, it added.