Hitachi Energy Reaches Export Milestone with Ambitious Future Plans

As we gear up for an energized future, **Hitachi Energy** proudly reveals that exports are now contributing to one-fourth of its total orders—a target the company achieved a whole year ahead of schedule for FY24! This milestone was shared by **N. Venu**, the Managing Director and CEO for India and South Asia, during an enlightening chat with Businessline.

Growing Export Orders

Q. Hitachi Energy’s export orders have been rising. What are your expectations going ahead?

Five years ago, when we embarked on our journey, exports represented just 15% of our total order book. We aimed to boost that figure to 25% by FY25. I’m thrilled to announce that we’ve hit that target—a full year early! This success stems from our dedicated investments in strategic product lines and a robust expansion plan, echoing our vision of ‘Make in India for India and the world’. With our exports now consistently contributing to 25% of our order book, we are optimally positioned to take on significant export orders like the ₹790 crore **Marinus Link** project in Australia.

Our strategies have paved the way for a steady influx of orders from various international markets, demonstrating the trust in our operations. Plus, with the global spotlight on energy transition, the opportunities remain abundant, provided everything else remains constant.

Meeting Order Deadlines with Confidence

Q. How is the company gearing up to meet its order deadlines, especially with existing order backlogs?

For **75 years**, we’ve powered India—showcasing our unwavering commitment to the nation through strategic investments and nurturing talent. Our profound understanding of the dynamic energy landscape in the sub-continent keeps us ahead of the curve.

We undertake mission-critical projects that profoundly influence lives and economies, making timely deliveries our top priority. Our primary focus remains on servicing the domestic market. We’re not just expanding; we are also exploring innovative models and partnerships to tackle our existing backlog while preparing for future demands. Our dedication to continuous improvement, especially in operational efficiency, reinforces our reliability as we forge ahead.

Investment Plans for Growing Demand

Q. Do you have any investment plans to meet the growing demand?

We’re deeply committed to staying at the forefront of our core sectors—transformers, switchgear, grid integration technologies like **HVDC**, power quality, and grid automation. With rising sectors such as renewables, data centers, and the electrification of mobility, the demand for enhanced power quality solutions and greater grid automation continues to surge.

In recent years, we’ve strategically channeled investments into these high-growth areas, which we believe will solidify our market standing in the long run. Since 2022, we’ve launched five new factories—both green and brownfield—under our parent company. Additionally, we’ve inaugurated a cutting-edge global technology and innovation center, maintaining an annual capital expenditure (capex) of ₹100 crore to adapt to the evolving needs of the energy sector.

Transmission Projects on the Rise

Q. In Q1 FY25, transmission projects have taken the lead in your order book. What does this signify?

Energy transition projects are intricate and their true potential shines when woven into a flexible, digital, and secure grid. Notably, this quarter has seen a remarkable rise in transmission project orders, spurred on by the development of green energy corridors. This uptick in Q1 FY25 highlights the urgent demand for rapid energy transition and widespread electrification.

The **government’s** commitment to fast-tracking inter/intra-state transmission development, backed by significant investments through national programs like the **Green Energy Corridor**, will not only fulfill today’s needs but also create an abundance of opportunities for the future.

Addressing Potential Order Declines

Q. What are your thoughts on the decline in orders from railways and data centres in this quarter?

Though we’ve noticed a slight dip in orders from the railways and data centers, we view both segments as vital growth areas in the medium term. The rapid acceleration of data centers, combined with the electrification of railways and expanding metro networks across the country, will surely invigorate these sectors in the near future. We believe the surge in data centers in India will continue to unfold significant opportunities for us.

Ensuring Power Quality Amidst Renewables

Q. As renewable energy sources continue to grow, what strategies can be employed to address power quality concerns?

The unpredictable nature of renewable energy sources can indeed present challenges, but the industry is witnessing remarkable advancements in renewable technologies—think improved efficiency, innovative energy storage solutions, and sophisticated grid integration capabilities. These advancements are critical for accelerating adoption.

To tackle the challenges associated with intermittency, we must remain dedicated to developing and deploying smart, mature, and advanced technologies that will maintain their relevance in the market over time. Achieving a carbon-neutral future hinges on our ability to assimilate large-scale renewable energy to navigate complexity and capacity issues. Right now, a staggering 61 GW of clean power in India flows through **Hitachi Energy’s** technology, a testament to our unwavering commitment to driving the energy transition forward.