TARIL Investing ₹1,250 Cr in CapEx for Critical Transformer Components
Transformer and Rectifiers (India) Limited (TARIL) has announced an investment of ₹1,250 crore for setting up three greenfield manufacturing facilities at its Chiyada manufacturing complex in Gujarat. The three facilities will manufacture critical components for High Voltage (HV) transformers.
Construction of these facilities commenced in December 2025 and is slated to begin commercial operations in Q1 of FY28. These upcoming facilities are housed under a wholly owned consolidated ancillary subsidiary.
Greenfield Expansion to Localize Bushings, Pressboard, and CTC
TARIL’s new facilities will localize manufacturing of raw materials and sub-critical components that are essential to the HV transformer manufacturing value chain.
One of the facilities will manufacture bushings in three insulation categories; namely, Oil-Impregnated Paper (OIP), Resin-Impregnated Paper (RIP), Resin-Impregnated Fibre (RIF). The bushings manufactured at this facility will support voltage rating of up to 800 kV.
The remaining two facilities will manufacture Pressboard & Insulation Materials and Continuously Transposed Conductors (CTC), respectively.
Enhancing Backward Integration: Targeting 80–85% In-House Sourcing
Transformer manufacturers in India typically source these components through external vendors and imports. Furthermore, bushings, insulation, and copper conductors’ supply chain has been under constraint, which is causing bottlenecks in manufacturing of power transformers and reactors, as is acknowledged by Ministry of Power via. Central Electricity Authority (CEA).
While TARIL manufactures certain radiators, transformer tanks and OIP bushings internally, it only covers about 10-15% of company’s raw material or component requirements. TARIL’s management believes that the establishment of the three new facilities will substantially improve its backward integration, and help cover 80–85% of raw materials and components requirements.
Further, the facilities establishment will also result in reduce dependency on external vendors, improve profit margins, and shorter lead times for critical components. Also, TARIL’s decision to bring all three lines under one umbrella provides an edge against other Indian OEMs.
Emphasizing the project’s importance, Mr. Satyen Mamtora, Managing Director & Chief Executive Officer (CEO), TARIL, said, “Manufacturing Bushings, Pressboard & Insulation materials and CTC in-house will provide greater control over quality, lead times and operational efficiency while improving supply chain resilience.”
Facilities to Generate Revenue Potential at ₹2,000 Cr
The three critical component manufacturing plants have an estimated revenue potential of ₹2,000 crore, at full operating capacity. As these assets will reside within a consolidated ancillary subsidiary, internal component deliveries to TARIL’s transformer lines will be eliminated as inter-company transfers upon financial consolidation.
Approximately 60% of output (including initial CTC runs) will go towards catering TARIL’s raw material requirement for transformers to de-risk delivery schedules. The surplus capacity will be marketed to other domestic and global transformer manufacturers, creating commercial revenue.
TARIL’s Ongoing 37,000 MVA Expansion Nears Completion
The upcoming facilities directly complement the company’s ongoing brownfield expansions at Moraiya & Changodar plants for increasing transformer manufacturing capacity. This brownfield expansion will add 37,000 Mega-Volt Ampere (MVA) transformer capacity, taking aggregate capacity to over 75,000 MVA. This expansion is on track and is expected to be completed around Diwali.
About Transformers & Rectifiers (India) Ltd.: TARIL was incorporated in 1994 and is headquartered in Ahmedabad, India. It manufactures power transformers, distribution transformers, furnaces, and rectifier transformers. The company has three manufacturing facilities in Western India, namely Moraiya, Changodar, and Odhav in Ahmedabad.
