Toshiba to Invest About Rs. 3,200 Cr. in India & Japan to Double Production
Toshiba Energy Systems & Solutions Corporation (Toshiba), the Japanese electrical & electronics giant, will be investing a total of 55 billion Japanese Yen (about Rs. 3,232 crore) in India and Japan.
This investment targets to double Transmission and Distribution (T&D) equipment production capacity by FY30 (compared to FY24 figures).
Investment Revised from Earlier Announced JPY 20 Billion
In July 2024, Toshiba had announced JPY 20 billion (about Rs. 1,148 crore) investment from the period between FY24 and FY26 to expand its production in Japan and India. However, the company has now decided to invest JPY 35 billion on top of this earlier investment by FY27, taking Toshiba’s total CapEx to JPY 55 billion from FY24 to FY27. This decision has been taken by the company based on its demand projections, which “…exceed [its] initial forecasts”.
This sum will be invested at Toshiba’s Kawasaki facility in Japan, and at Toshiba Transmission & Distribution Systems (India) Pvt. Ltd. (TTDI), situated in Hyderabad, India.
Production Lines at TTDI to be Expanded
Although Toshiba has not given the break-up of the aforementioned investment, the company’s investment in India will be targeted towards expanding production lines at TTDI. This will be done not only to cater to the Indian market better, but also to increase exports to regions such as Europe, North America, and the Middle-East.
Measures that will be undertaken at TTDI include upgradation of existing production lines and plant infrastructure, and construction of new facilities.
TTDI is engaged in the manufacturing of various types of transformers, switchgear, surge arresters, protection relay, substation automation systems, and more. However, the company has not specified the exact category of products for which this expansion will be undertaken.
“Stable Supply of T&D Equipment More Critical Than Ever” – VP Grid Solution Division
Commenting on the company’s aforementioned investment plan, Hiroshi Kaneta, Vice President of Toshiba’s Grid Solution Division, expressed, “As global electricity demand continues to rise, ensuring a stable supply of T&D equipment is more critical than ever”. Mr. Kaneta explained that adoption of Renewable Energy (RE) in India, as well as the country’s economic growth and rising urban population are some factors which are driving electricity demand. In Japan, RE adoption, data centre projects, and infrastructural development were mentioned as key stimulants for increased electricity demand as per Mr. Kaneta.
India’s T&D Equipment Market Growth
According to a report by Grand View Research, Indian electric power Transmission and Distribution equipment market was estimated to be sized at USD 20.9 Billion in 2022 and is expected to reach USD 33.7 billion by 2030. The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 6.1% from 2023 to 2030, reaching USD 33.7 billion.
About Toshiba Energy Systems & Solutions Corporation: Toshiba Energy Systems & Solutions Corporation was established in 2017. The company is headquartered in Japan. The company has two manufacturing plants in India, one is in Hyderabad and other is in Chennai.
