To bolster power equipment production in India, Toshiba Group invests ₹500 crore
-Sujata Muguda, Shreyas WebMedia Solutions
19 July 2024: Toshiba Group has announced a large investment of ₹500 crore (JPY 10 billion), a major step towards strengthening India’s capacity to produce power equipment. The purpose of this deliberate funding infusion is to increase the production capacity of power transmission and distribution equipment, a critical industry for the country’s energy infrastructure.
Toshiba Transmission & Distribution Systems (India) Private Limited (TTDI), a key player in the Toshiba Group, will oversee the expansion. The investment will span over three years, from FY2024 to FY2026, and is expected to increase the production capacity of power transformers and distribution transformers by approximately 1.5 times compared to FY2023.
This investment is not just about scaling up production; it’s a testament to Toshiba’s commitment to the ‘Make-in-India’ initiative and its vision to establish India as a hub for its manufacturing and export operations. TTDI has already made its mark by supplying India-made transformers to over 50 countries, showcasing the country’s manufacturing prowess on a global stage.
The expansion includes the establishment of a state-of-the-art facility for Cold Rolled Grain Oriented (CRGO) steel processing, which will enhance the vertical integration facility. This move is expected to reduce process lead times and elevate the quality, safety, and implementation of the 5S strategy (Sort, Set in order, Shine, Standardize, Sustain). Additionally, a new manufacturing facility for surge arresters is set to be built in the first half of FY2024, with products hitting the market by the latter half of the year.
Toshiba’s investment is a strategic step towards addressing the growing global demand for power transmission and distribution equipment, especially in the context of the worldwide expansion of renewable energy sources. The enhanced testing capacity for power transformers is specifically designed to cater to the high demand for 400kV/765kV transformers in the Indian market and to bolster the export of these transformers.
The move by Toshiba Group is a clear indicator of the potential they see in India’s power sector and their desire to contribute to its growth. It aligns with the global trend towards renewable energy and positions India as a key player in the production and supply of high-quality power equipment. This investment is expected to not only improve operational efficiency and increase speed-to-market but also support Toshiba’s business expansion both in India and internationally.
With this investment, Toshiba Group is setting a precedent for other multinational corporations to consider India as a viable and strategic location for manufacturing. It underscores the importance of foreign investment in enhancing India’s industrial capabilities and contributing to the country’s economic growth.