Hitachi Energy Bets Big on India for De-Risked Global Production

Hitachi Energy is placing India at the center of its strategy to diversify and de-risk its global supply chain operations. CEO Andreas Schierenbeck emphasized that the company is increasing investments in India to establish a robust international manufacturing footprint.

The company's facilities in India serve both the local market and global exports, following the 'India for India and India for the world' approach. This includes manufacturing high-voltage direct current transmission equipment, energy storage solutions, and power semiconductors.

Schierenbeck pointed to a significant global mismatch between the supply and demand for power equipment. This surge is fueled by escalating needs from data centers and the ongoing energy transition from fossil fuels to electricity.

He cautioned that the lead times for power generation and transmission infrastructure, often around 10 years, far exceed those for building data centers, which take 1-3 years. This disparity necessitates long-term framework agreements and capacity reservations from customers.

A McKinsey & Company report projects a 40% rise in global transformer demand by 2035. Despite this growth, supply is expected to remain constrained for several years, impacting the market's ability to meet escalating needs.