GE Vernova to invest ₹140 crore to expand grid tech footprint in India
The investment will be made by GE Vernova T&D India Limited, the listed entity of GE Vernova's Electrification business in India. It includes the development of a new manufacturing line at the company's existing facility in Chennai (Pallavaram) and a new engineering and test lab in Noida.
These expansions aim to enhance the ability of GE Vernova T&D India to manufacture and test key next-generation equipment used in modern transmission systems, to support India's energy transition and export demand from other fast-growing economies.
The facilities will focus on High Voltage Direct Current (HVDC) and Flexible Alternating Current Transmission Systems (FACTS)—technologies used to stabilize power grids, reduce transmission losses, and enable integration of renewable energy sources such as wind and solar.
'India continues to be a critical part of our global strategy—both for our customers and as a manufacturing hub,' said Johan Bindele, VP of Grid Systems Integration at GE Vernova. 'GE Vernova's Electrification equipment backlog has more than tripled over the past year—driven by strong demand for transformers, switchgear, and grid technologies including HVDC and FACTS. These new expansions are aimed at enhancing our capabilities in the region, helping reduce supply chain dependencies, and allowing us to deliver faster, smarter solutions to customers in India and around the world.'
'With energy demand rising and more renewables being added to the grid, the need for strong, smart, and flexible infrastructure has never been greater,' said Sandeep Zanzaria, Managing Director and CEO of GE Vernova T&D India Limited. 'Through this investment, we are strengthening our ability to deliver technologies that help utilities move more power, with fewer losses, over longer distances—and do it more sustainably.'
The new manufacturing line at the Chennai facility will produce Line Commutated Converter (LCC) HVDC valves and Voltage Source Converter (VSC) Static Synchronous Compensator (STATCOM) valves. LCC is used for long-distance, high-capacity power transmission, while VSC is suitable for connecting renewable energy sources and providing grid stability.
In Noida, GE Vernova T&D India will set up a new engineering and test lab to support design and system validation, as well as to supply control systems for real-world grid conditions. The Noida lab is expected to be operational by the end of 2025, and the new manufacturing line at the Chennai facility by early 2027.
The investment is part of GE Vernova's broader 'Asia for Asia' strategy and is included within the company's previously announced $4 billion global capex plan through 2028. The strategy focuses on building local manufacturing capacity to serve regional needs and strengthen global supply chains. It also aligns with India's renewable energy goals and promotes domestic production of grid technologies.
GE Vernova T&D India currently operates five manufacturing facilities across the country and has been serving the Indian grid for over a century.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
5 hours ago
- Mint
This Quiet Power stock is surging. What does the market know that you don't?
The transmission and distribution (T&D) industry has quietly emerged as one of the hottest infrastructure themes. Within it, high-growth niches like high voltage direct current (HVDC)—which enables long-distance electricity transmission with minimal losses—and flexible alternating current transmission systems (FACTS), designed to enhance grid stability and efficiency, are gaining rapid traction. The domestic market for these segments is expected to grow at an annual rate of 60-65%, expanding from $1.4 billion in 2024 to $9 billion by 2028. Separately, the high-voltage power and power quality market is projected to grow at 18% annually over the same period. Amid this surge in demand for advanced grid infrastructure, companies are scrambling to scale. Among the more compelling success stories is Quality Power, a relatively low-profile but fast-growing player in high-voltage equipment and power quality systems. To fuel its next phase of growth and capture market share in this booming segment, Quality Power launched its ₹859 crore initial public offering (IPO) in February 2025. The stock debuted at ₹432 on 24 February but dropped to ₹274 by 9 April. Since then, it has soared 182% in just three months, closing at ₹773. So, what's driving this rally—and can it sustain? High-voltage play with strong tailwinds Founded 24 years ago, Quality Power manufactures high-voltage electrical equipment and advanced power quality solutions critical for grid connectivity and energy transition. Its products are used in sectors including power, renewables, oil and gas, cement, chemicals, and automobiles. The company also benefits from green energy tailwinds. Its portfolio includes coil products, transformers, capacitor banks, and shunt reactors. With a global footprint across over 100 countries and a client base of more than 210, Quality has grown through both product expansion and acquisitions. Past acquisitions include Endoks, S&S Transformers, EPEC, Nebesky, and, most recently, Mehru. Out of the ₹859 crore raised via IPO, ₹225 crore was earmarked for business expansion— ₹117 crore for the Mehru acquisition, ₹27 crore for machinery purchases, and ₹61 crore for future M&A. Market interest intensified after the company laid out aggressive revenue targets tied to these inorganic efforts and its capacity expansion pipeline. Strong FY25 performance Quality's financials reflect momentum, boosted by industry demand. In FY25, revenue rose 12% year-on-year to ₹337 crore, with power products contributing ₹185 crore (55%) and power quality systems ₹152 crore (45%). The domestic and export mix stood evenly at 50:50. Within power products, coil products, used in HVDC and FACTS, saw significant traction, generating 20-25% margins. As a result, operating margins expanded by 600 basis points to 19% in FY25, up from 13%. Net profit surged 81% to ₹100 crore. This growth was underpinned by rising investment in fixed assets, which grew from ₹34 crore in FY22 to ₹219 crore in FY25. Despite the capital investment, return on capital employed (ROCE) remained strong at 30%, down from 49% in FY22. Return on equity held steady at 26%. The company's balance sheet also reflects financial discipline. Borrowings dropped 77% from ₹38 crore in FY24 to ₹9 crore in FY25. Free cash flow rose from ₹6 crore in FY22 to ₹48 crore in FY25. As of now, the company holds cash reserves of ₹210 crore. Mehru adds scale and reach With a strong balance sheet and momentum in core operations, Quality also made a strategic acquisition to expand product depth and international footprint. In March, Quality acquired a 51% stake in Mehru for ₹120 crore using IPO proceeds. Mehru, a manufacturer of instrument transformers (up to 500 kV), has a strong export presence in Southeast Asia and Africa. The deal expands Quality's portfolio and client base to more than 50 countries and positions it to deliver integrated grid and renewable solutions. In FY25, Mehru posted revenue of ₹256 crore—76% of Quality's consolidated topline. However, since the acquisition closed on 6 March, only ₹18 crore was consolidated into FY25 earnings. As of Q4FY25, Quality's order book stood at ₹750 crore, with Mehru contributing ₹350 crore (47%). The order book is expected to be executed over the next 15 months. Given the full-year consolidation in FY26, Quality expects revenue to double to ₹700-850 crore. However, Mehru's lower PAT margin (12-13%) is expected to drag down consolidated Ebitda margins to 16-18%, from 30% in FY25. FY26 net profit is projected at ₹112-153 crore. The company expects margins to revert to 20% in a few years. Demand is already outpacing supply. Mehru had to forgo orders worth ₹150 crore recently. To meet rising demand, Quality has launched a capacity expansion at Mehru's Bhiwadi facility within a month of acquisition. The expansion includes four new autoclaves and relocating non-critical storage to a warehouse. Capacity will rise 45%, with new capacity online in five months. Order bookings are expected to pick up within six months, with a bid pipeline of ₹400 crore and peak revenue potential of ₹500 crore. Sangli plant to become global coil hub The Sangli unit—Quality's coil manufacturing hub for HVDC and FACTS—operates near full capacity. Notably, Quality is the only Indian firm that manufactures coil products rated at 220 kV and above, a segment with strong demand. These coils currently contribute ₹160 crore to revenue. To capitalise, the company is expanding capacity 9x at Sangli, positioning it among the world's largest coil factories. The new facility is expected to go live in H2FY27 and could deliver peak revenue of ₹1,500 crore. Quality's bid pipeline, including Sangli, stands at ₹1,000 crore, with bookings expected to begin in 6–9 months. Quality is also doubling capacity at its Cochin plant by Q3FY26 to meet HVDC/FACTS demand. A medium-voltage testing lab will be added to enhance quality control and validation. With these expansions, Quality aims to reach peak annual revenue of ₹2,000 crore in four years— ₹500 crore from Mehru alone, assuming no further acquisitions. The workforce is also set to triple in two years, with 1,000 new hires planned soon. Near-term margin pressure is expected due to fixed cost absorption, though the company believes pricing power and demand will offset most of the impact. Valuations rich—but tailwinds strong Quality currently trades at a price-to-earnings (P/E) multiple of 90x—rich by industry standards. By comparison, peers like ABB (65x), Siemens (59x), and Transformers & Rectifiers (71x) trade lower. Only GE Vernova trades higher at 98x. For more such analyses, read Profit Pulse. Despite high valuations, strong demand, expansion visibility, a robust order book, low leverage, and high cash reserves make Quality Power one to watch. The promoters also waived a ₹5 crore dividend payout this year to preserve capital, underscoring their commitment to long-term growth. About the author: Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
&w=3840&q=100)
Business Standard
10 hours ago
- Business Standard
Ambit bullish on InterGlobe as India's aviation sector gains altitude
InterGlobe aviation share price today: India's aviation sector has not been on the best ground lately, owing to sectoral headwinds and liquidity challenges resulting from the capital-intensive nature of the sector. However, with the government's rising focus on airport infrastructure, favourable demand-supply dynamics and a robust order book, the old playbook of India's aviation industry might change. Ambit has initiated coverage on InterGlobe Aviation (IndiGo) with a double-digit upside estimated and a 'Buy' rating. The aviation firm is planning to invest heavily in aerospace parts by utilising cash effectively. On top of this, InterGlobe (IndiGo) is also making a switch from low-cost carrier (LCC) to a hybrid model by launching a premium offering on select routes. Both of these factors have prompted the brokerage firm to take a bullish outlook on IndiGo and its ability to maintain the market share. For India's aviation sector, as a whole, data figures paint an optimistic image. Between financial year 2013-14 (FY14) and FY24, domestic passenger traffic in India grew at a compound annual growth rate (CAGR) of 9.7 per cent, outpacing international passenger traffic, which saw a 4.5 per cent CAGR. In FY24, the passenger load factor hit a decadal high of 88 per cent, surpassing pre-covid levels. That apart, domestic carriers currently hold a record-high aircraft order book of over 2,000 planes, accounting for 14 per cent of the global order books of Airbus and Boeing. With the number of airports projected to rise to 300–350 by 2047, India's aviation sector is poised for an unprecedented phase of expansion, according to the brokerage firm Track Stock Market LIVE Updates Gift City to fuel growth Despite strong growth prospects, India's aviation industry continues to favour the LCC model. This is mainly due to the country's price-sensitive market. While two full-service carriers (FSCs), Kingfisher and Jet Airways, once had a presence, it's been over a decade since they exited the market owing to intensified competition from LCCs. Meanwhile, the largest remaining FSC, Air India, has since been privatised and Vistara has now merged with it. Keeping in view the high capital-intensive structure of the aviation industry, leasing becomes a key strategy for airlines. At the global front, Ireland and China are already among the leading players when it comes to aircraft leasing. As for India, the nation is building its very own leasing hub within the GIFT City International Financial Services Centre (IFSC). A domestic leasing ecosystem gives airlines better control over lease terms, reduces forex risk and supports growth in both aviation and MRO sectors. Also, not ignoring the job prospects. That said, the momentum is already quite visible in figures. As of January 2025, 33 lessors had registered at GIFT IFSC, enabling the lease of over 60 aircraft, including jets, helicopters and engines. Watching the China playbook India and China, having the tag of largest population size, are among the top domestic aviation markets in the world (just behind the US). While China's aviation industry is much larger and mature as compared to that of India, Ambit believes that India's low per capita trip rate leaves room for higher growth prospects in the sector. "By accelerating infrastructure, expanding fleets, reducing costs, boosting international routes, developing talent and adopting technology, India can close the gap, potentially matching China's passenger volume by the next decade. Sustained execution and economic growth are critical to rival China's scale," the brokerage firm said. Strong upside on InterGlobe Aviation Ambit has initiated coverage on InterGlobe Aviation with a 'Buy' rating, with the target price of ₹7,000 from the current market price (CMP) of ₹5,840. This implies a robust double-digit upside of 20 per cent. So far this calendar year, the shares of the aviation firm have experienced a strong rise of over 30 per cent. "Increasing codeshare agreements and a strong network put IndiGo in sweet spot to capture growing share of inbound/outbound traffic. IndiGo is strategically expanding into underserved Asian markets by launching routes to less-frequented destinations like Almaty, Baku, Tashkent, Tbilisi, Jakarta and Nairobi, aiming to capture growing demand in areas with minimal competition," the brokerage noted.
Hans India
4 days ago
- Hans India
Adani Group charts mega $100-bn capex
Mumbai: Gautam Adani, Chairman, Adani Group, on Friday announced that the conglomerate is preparing for a capital expenditure investment of nearly $100 billion over the next five years. 'The scale and pace of this commitment is unprecedented in India's private sector history as we do our part for strengthening the very spine of India's rise that must carry 1.4 billion dreams,' Gautam Adani remarked. Addressing a conference of top doctors here, Gautam Adani said these investments are manifestations of the Adani Group's 'belief in the future of India' comprising energy grids, logistics arteries and the country's industrial backbone. He was addressing the 5thAnnual Conference of the Society for Minimally Invasive Spine Surgery-Asia Pacific (SMISS-AP), in Mumbai. Gautam Adani narrated the Group's success story of building the Mundra port from a mere salt export jetty to India's largest multi-cargo port. 'Mundra is the manifestation of a belief made real. It is a reminder that when vision dares, destiny bends as it is now India's largest multi-cargo port, the world's largest private single-site thermal power plant, India's first HVDC transmission line, India's largest integrated solar and wind manufacturing hub and a cluster of vital industries that include petrochemicals, copper smelters, solar accessories and much more yet to come,' the Adani Group Chairman pointed out. He said that after the US partner backed out of the Mundra salt export jetty at the outset, his company went ahead and built it on its own with no construction experience in the marshland. Around this time in 1995-96, Gujarat pioneered a public–private partnership policy for port development, aiming to tap private sector capabilities and the Adani Group 'dived right in.' The Mundra Port commenced operations in October 1998 with its first berth, thereby marking India's first private port launch. A few years later, the SEZ policy was announced. 'Once again, we moved fast. While others saw barren land, we saw 40,000 acres of possibility,' Gautam Adani remarked.
