TARIL ₹1,250 Crore Gujarat Capex Targets FY28 Start

Investment plan at Chiyada complex

Transformers and Rectifiers (India) Ltd, or TARIL, has announced a ₹1,250 crore investment to set up three greenfield manufacturing plants in Gujarat. The facilities will be located at the company’s Chiyada manufacturing complex. TARIL said the investment is intended to build domestic capability for critical components used in extra-high-voltage transformers. The three units will manufacture transformer bushings, pressboard and insulation materials, and continuously transposed conductors, or CTC. Construction began in December 2025. Commercial operations are scheduled to begin in the first quarter of FY28, corresponding to April through June 2027.

Three critical transformer component facilities

The bushing plant will make oil-impregnated paper, resin-impregnated paper and resin-impregnated fibre bushings. These products, also known as OIP, RIP and RIF bushings, are planned for ratings of up to 800 kV. Bushings are advanced components used in extra-high-voltage transformers. The other two plants will produce pressboard and insulation materials, along with CTC. TARIL said the facilities will support manufacturing of components that are important to transformer production. The project therefore combines three linked areas of the transformer supply chain at one manufacturing complex.

Revenue and employment potential

Once fully operational, the three facilities are expected to have annual revenue potential of about ₹2,000 crore. TARIL also expects the project to create more than 1,000 direct jobs. The employment opportunities are expected across engineering, manufacturing, operations, quality assurance, and research and development. The company has not disclosed a year-wise revenue ramp-up or a break-up of investment between the three plants. It has also not provided separate production capacities for the bushing and insulation material units. The stated revenue potential is therefore a full-operation estimate rather than a reported current contribution.

Key project details

Supply-chain localisation objective

TARIL has linked the investment to its effort to localise and secure its supply chain. The company said the facilities will strengthen its vertically integrated manufacturing ecosystem. Producing these components within its own manufacturing network can give the company direct control over manufacturing quality, technology, procurement and long-term strategic direction. The plants are to be housed under a wholly owned consolidated ancillary subsidiary of TARIL. This structure will place the proposed component operations within the company’s controlled manufacturing network. TARIL has specifically identified reduced import dependence as a key objective of the investment.

Chairman cites domestic manufacturing need

Jitendra Mamtora, Chairman of TARIL, said the investment aligns with the national objective of strengthening domestic manufacturing for critical transformer components. He said the project is intended to reduce import dependence and contribute to a resilient power infrastructure ecosystem. The statement places the capex within the broader requirement for power equipment used in transmission infrastructure. TARIL has not announced customer contracts specifically tied to output from the three new plants. It has also not disclosed financing details for the ₹1,250 crore investment in the information provided. Investors will therefore need to track future company disclosures on project funding, execution and commissioning.

Link with TARIL's ongoing expansion

The greenfield plan sits alongside other capacity expansion and backward-integration initiatives outlined by TARIL. The company has cited ongoing expansion projects at its Changodar and Moraya plants. Changodar was expected to reach 35,000 MVA capacity, according to the company information provided. TARIL has also indicated that its CTC plant is expected to be commissioned by Q3 FY27 with capacity of 3,000 MTPA. Separately, the company expects around a 30% increase in manufacturing capacity at Moraya after the pressboard plant becomes operational. Its extra-high-voltage transformer plant at Moraya is expected to be ready for production by FY28.

Existing order activity and operations

TARIL has also secured an order from Damodar Valley Corporation for the manufacture and supply of 500 MVA and 200 MVA auto transformers and related work. Delivery for that order is expected within 15 to 28 months. The company has said capacity utilisation is expected to increase without additional capital expenditure beyond its ongoing backward-integration projects. It has also said no additional capital expenditure is expected beyond current plans for capacity expansion and backward integration. For Changodar, TARIL has cited capacity-expansion capex of around ₹150 crore. These projects indicate that the Gujarat investment is part of a wider manufacturing build-out rather than an isolated facility addition.

What the capex means for investors

The planned facilities are relevant to TARIL because they cover inputs used in high-voltage transformer manufacturing. The company expects the plants to add an estimated ₹2,000 crore of annual revenue potential after full operationalisation. The project’s progress will depend on construction, equipment installation, commissioning and the planned FY28 commercial start. No share-price movement, project funding mix, margin guidance or order backlog related to the new facilities was disclosed in the information provided. As a result, the immediate measurable markers are the ₹1,250 crore planned capex, the Q1 FY28 operations target, and the stated employment and revenue potential.

Next milestones to watch

TARIL has set Q1 FY28 as the commercial operations target for the three greenfield facilities. Before then, the company may provide updates on construction progress, individual plant commissioning and production capacity. The CTC facility has a separate stated commissioning expectation of Q3 FY27. The company’s execution of its backward-integration projects and its wider Changodar and Moraya expansion plans will also remain relevant. For now, TARIL’s announcement sets out a defined Gujarat manufacturing investment aimed at producing key transformer components domestically.