TARIL to invest Rs 1,250 crore in three Gujarat plants, 1,000 jobs

Power transformer maker Transformers and Rectifiers (India) Ltd (TARIL) will invest Rs 1,250 crore in three new greenfield plants at its Chiyada manufacturing complex in Gujarat, the company announced on Tuesday, October 27, 2026. The plants will make key transformer components that are now often imported: bushings, pressboard and insulation materials, and continuously transposed conductors. The company expects the plants to create more than 1,000 direct jobs and generate annual revenue of about Rs 2,000 crore once fully operational.

A transformer changes electricity from one voltage to another, so that power can travel long distances on high-voltage lines and then be stepped down safely for homes and factories. Reports on the announcement link it to rising power demand. Every new transmission line, substation and renewable energy park needs transformers, so demand for their parts rises with grid expansion.

The weak link is components. A large transformer depends on parts such as bushings, the insulated connectors that carry high-voltage current through the transformer's metal casing; pressboard, a dense insulating board made from cellulose; and continuously transposed conductors, bundles of insulated copper strands that are twisted in a regular pattern and wound into the coils to reduce energy losses. When these are imported, makers face long waits, currency risk and supply shocks. Industry reports describe TARIL's plan as a move to secure its supply chain and reduce import dependence. Managing Director and CEO Satyen Mamtora called the investment a strategic step towards deep vertical integration, meaning the company will make more of what goes into its own products.

For Gujarat, more than 1,000 direct jobs, plus work for local suppliers and contractors during construction and operation, is a meaningful addition to the area around the Chiyada complex. Housing the plants in a separate subsidiary also lets the company account for the component business on its own and, potentially, sell parts to other transformer makers, though it has not announced such plans.

There are caveats. The company has not given a project-wise breakdown of the Rs 1,250 crore or the capacity of each plant, nor the order in which they will be commissioned. One analysis noted that an earlier TARIL expansion, at Changodar, ran four to five months late, so timely construction will matter.

Short-term: Construction and hiring at Chiyada continue, and suppliers in the region could see new orders. Investors have reacted positively.

Long-term: If the plants run as planned, TARIL will depend less on imported components, which could shorten delivery times for its transformers and help India's power grid expansion. Other component makers may face more domestic competition.

Who is affected: Job seekers in Gujarat's manufacturing belt; power utilities and grid companies that buy transformers; TARIL's shareholders; and Indian and foreign suppliers of transformer components.

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