Hitachi Energy India – Facilitating Energy Transition and Creating Value for Shareholders

  • Energy transition presents big opportunity for the Hitachi Energy
  • Company is focusing on increasing export share to 25%
  • Productizing and digitalizing the service

Hitachi Energy, is in the business of providing mission critical technology to its customers enabling carbon neutral strategy of our customers. Company is head quarter in Zurich, Switzerland. Earlier it was part of ABB Power Grids and globally its ownership has changed from ABB to Hitachi.

During FY 2021-22, Compnay has received orders RS 1043. 6 Crores. Revenue is 1142.1 Crore. Revenue is up by 11.6% on YoY basis.  PBT stood at 70.7 Crore, up by 31.7% on yoy basis. Company’s PAT stood at Rs 51.7 Crore, up by 31.2% on yoy basis

Earlier Addressing the  investor conference call in March, Mr. Venu Nuguri – MD & CEO, Hitachi Energy India said that Company has a clear strategy focussing on export revenue. Company’s exports were  15% and strategy was to take it to 25% over a period of time.

Hitachi Energy will continue to serve utilities, so utility will be one of the key markets and key focus areas for the company. Hitachi Energy  is also  focusing on non-utility sector for example industries, rail, infrastructure, and also other emerging segments such as the data centres and also mobility.

Company is focussing on charging infrastructure. Companies charging infra will take care of the stability of the grid, at the same time, ensuring that the car/vehicle need not stay there for a longer period of charging. Company is optimising the charging time. Its technology enables the vehicles to carry less number of batteries and more number of passengers. Electrical mobility is at a nascent stage today and the government has set us targets of 30% of electrical vehicle penetration by 2030. This presents deeper economic opportunities for the company. Company will be focussing on undermentioned levers for driving growth:

  • Energy transition driving all the utilities and customers to accelerate or leapfrog digitalisation of their assets.
  • Company has three-point export strategy taking the exports from presently 15% to 20%, over a period of time to 25% in a more sustainable manner
  • Productising and digitalising the service.

Hitachi Energy has localised entire converted transformer. In its last two projects, almost 60% of our converted transformers have been manufactured locally here. For HVDC technology, Indian operations need lot of know-how and technical support from its centre of excellence in Europe and company will continue to leverage it along with taking advantage of local capabilities. According to Mr Nuguri, Hitachi Energy   endeavour will be to qualify in next tenders based on its indigenous capabilities. Company is also augmenting the capability.

Regarding presence in Indian Railways, every third Shatabdi is powered through Hitachi Energy equipment or technology. Every second freight loco which is carrying freight, is powered through company’s technology.

Company has quite a good market share in terms of loco transformers and other related things.  Further Indian Railways, have plans to electrify its entire fleet, which will present economic opportunities for the company.  Further – 9 out of the 10 metros  ( Delhi Metro, Bangalore Metro, Calcutta Metro etc) are powered through Hitachi Energy  SCADA systems.

 Company is also capable for cross-country electrification, whether it is by the substation by the side of the tracks or stations, and track-side, way-side transformers etc. Further Hitachi is a Japanese company, so it qualifies for the step component wherever the Japanese funded projects are. High-speed rail project is one of them.

Company has informed that:

  • Company has won Order of nine AIS substation from Madhya Pradesh Power Transmission
  • 400kV GIS substation order for steel major
  • State utility order of –765kV transformers & 765kV/400kV reactors
  • Trackside transformers order from unit of Indian Railways § 66kV GIS substation order from data center
  • Order for 220/33kV GIS for Bhutan Power
  • First service order in Bangladesh for replacement of bushings, IGBTs and PS905E cards for SVC project

Company has reappointment N Venu as its Managing Director and CEO for a period of five years commencing from Dec 2, 2022.

As on 2nd June 2022, share of Hitachi Energy India Closed @ Rs 3490.35 in BSE. Total Market cap of the company is Rs 14,792.69 Crore.

Staff Galactik Views

Related articles