Godrej Energy Biz Eyes 20% Growth in FY27

New Delhi, Mar 17 (PTI) Godrej Enterprises Group is eyeing up to 20 per cent growth for its energy solutions business, having built a project pipeline of Rs 2,600 crore at the close of FY26, a top company official said on Tuesday.

The company is closely watching the developments related to the war in West Asia, although it has not had any impact on operations, but the overall capacity constraints faced by domestic suppliers to cater to the growth witnessed in the Indian power sector remain a challenge, Godrej Enterprises Group Business Head,“ Energy Solutions Business, Raghavendra Mirji, told PTI.

"(Our) order bank is Rs 2,600 crore as of now. When we close this year in the next 15 days, we will be having about 15 per cent growth. Next year also, we are looking at about 15-20 per cent," he said when asked about the growth outlook for the next fiscal.

The order bank for FY26 spans across transmission infrastructure, railway electrification and renewable energy projects.

Commenting on the spread of the projects that the company is executing, Mirji said with Gujarat and Rajasthan leading the renewable energy push in terms of building large scale renewable energy infrastructure, "majority of our projects are right now focused in these two states".

He further said in Maharashtra, Uttar Pradesh and Tamil Nadu, growing industrial and urban demand is driving investments in transmission infrastructure and grid modernisation.

Elaborating on Godrej Enterprises Group's energy solutions business, he said it is basically into EPC (engineering, procurement, and construction) turnkey projects for power infrastructure in building power infrastructure for both transmission line and power substations.


"So we are more focused on power substations. We take projects to build power substations up to 765 kV," Mirji noted.

Commenting on the challenges in the sector, he said the power sector is seeing a sudden growth since the last one year or so, and anticipated huge growth in the next few years. The entire supply chain capacity is not aligned to cater to this kind of growth.

"That is one challenge that we see in some of the equipment and parts where the capacities are not improved or increased in order to cater to this requirement. We are experiencing a little bottleneck in this," Mirji said, adding that the company is addressing the issue with its key vendor, investing in terms of increasing their capacity.

Besides, he said availability of skilled labor is a challenge in India.

"We are witnessing this for the last few years or so. With increased projects coming up, the availability of such skill levels is also going to be a challenge," he noted.

Asked if the war in West Asia has had any impact on its operations, Mirji said the situation is evolving and the company is "watchful of this and getting regular updates".

"We are in the power sector and largely in EPC, we are executing projects of a different kind. At this point of time, we do not have any major impact as such," he added.

As the power sector operates with the domestic suppliers, which is also "a mandate", Mirji said,"The majority of the equipment and other items required for power infrastructure are all made in India, and their localisation percentage is also quite high. We do not have much issues or risks anticipated at this point of time."