Godrej Enterprises' Energy Solutions arm eyes Rs 2,000 cr revenue in 3 yrs

Company says it's focused on constructing power substations and expanding mechanical, electrical and plumbing business

Energy Solutions, a company of Godrej Enterprises Group, seeks 30 per cent annual growth in its order book in three years as it expands in India's power infrastructure, renewables, and mechanical, electrical, and plumbing (MEP) business, said a senior executive.

 

The company has constructed more than 80 substations of up to 765 kilovolt-amperes (kV) and it has an order book of Rs 2,400 crore. Energy Solutions aims to earn Rs 2,000 crore in revenue over the next three years, said Raghavendra Mirji, executive vice-president and business head for Energy Solutions. The company expects to earn Rs 1,500 crore as revenue in the Financial Year 2024-25.

 

 

As much as 90 per cent of Energy Solutions’ order book is for high-voltage substations linked and the company is not prioritising standalone transmission line projects. “We want to be seen as a major substation player," Mirji told reporters in Mumbai. The company is working on 765 kV gas-insulated substation (GIS) projects in Maharashtra, Gujarat, and Rajasthan.

 

With India aiming for 500 gigawatts of renewable energy by 2030, developing power infrastructure is critical. "India is going through an immense transition in the energy sector," said Mirji, listing projects designed to distribute renewable energy from states like Gujarat and Rajasthan. "Dedicated lines have to be established, and then the power will be distributed to other states as well."

 

Godrej is expanding its MEP business, with projects for data centres, commercial buildings, hospitals, and hospitality. The group’s MEP division contributes Rs 500 crore to Rs 700 crore annually. "We have already completed more than 25 MW of data centres through MEP," said Mirji, adding that Godrej completed a 12 MW data centre in southern India and is working on additional projects.

 

Land and supply chains are challenges the company faces. "The availability of land and title disputes are issues everywhere," said Mirji, adding that GIS substations will grow due to their compact footprint. He also highlighted transformer shortages amid India's rapid energy transition. "We are facing long wait times for transformers, but we are trying to reduce this with booking and original equipment manufacturer (OEM) tie-ups," said Mirji.

 

International expansion will follow domestic. "There are a lot of opportunities for us in India in the next four or five years, so we are not very focused on expanding overseas in a big way. But to start with, we want to enter SAARC countries, where geographical conditions, voltage systems, and other factors are similar," said Mirji.