Godrej Energy Solutions Targets 30% Growth, Biz Expansion

As the Godrej Enterprises Group expands its power infrastructure, renewables, and mechanical, electrical, and plumbing (MEP) sectors, the company’s Energy Solutions division is pursuing an aggressive growth strategy as it aims to increase its order book by 30% every year going forward. The division boasts of more than 80 fully functional substations built, with a capacity of up to 765 kV, and an order book of Rs 2,500 crore, which the company hopes to increase to Rs 4,000 crore over the next three years.

Raghavendra Mirji, executive vice-president and business head for energy solutions at Godrej Enterprises Group stated, “The Energy Solutions division of Godrej Enterprises Group is aiming for Rs 2,000 crore in revenue over the next three years.” In addition, he remarked that in FY 25, revenue is expected to peak to Rs 1,500 crore, marking a positive and prosperous change in the company's future.

Godrej aims to increase its market share by focusing on the execution of high-voltage substations since 90% of its order book is linked to such projects. The company wishes to reinforce its brand as a major substation supplier, according to Mirji. The company has active projects for 765 kV gas-insulated substation (GIS) underway in the states of Maharashtra, Gujarat, and Rajasthan.

As India progresses toward achieving five hundred gigawatts of renewable energy by 2030, the construction of power infrastructural facilities remains very important. “India’s energy sector is going through an enormous amount of change,” noted Mirji. He mentioned significant green corridor projects aimed at transporting renewable energy from constellations like Gujarat and Rajasthan. “The state of India will have to put up dedicated lines for transmission, and thereafter the energy will be used by the other states,” he added.

In addition, Godrej has its own expansion plans with respect to its MEP business and is active in dairy farms, commercial structures, hospital systems, and other hotel services. With these projects, the MEP division earns revenue between Rs 500 crore to Rs 700 crore every year. As part of MEP works, “we have now executed over 25 MW of data center facilities,” Mirji said, noting that Godrej achieved 12 MW data center construction in South India and is active in other regions, too.

But critics say the biggest problems still are land availability and supply restriction problems. “Land availability and title disputes are clearing problems everywhere,” Mirji mentioned, saying that because of their compact footprint, GIS substations are bound to multiply. He also pointed out the transformer issues, which are emerging out of the over gaping energy needs of the nation. “We are having delays with the delivery of transformers, but we are attempting mitigate this with pre ordering and OEM agreement,” Mirji said.

While looking to expand further, certain objectives are on the forefront. “We see a lot of possibilities in India over the next four or five years, and therefore, we are not too concentrated on doing major overseas expansion. To begin with what we want is expansion in SAARC countries where there are similarities in geographical conditions, voltage systems and so on,” said Mirji.