Godrej Enterprises is investing ₹200 crore to expand its Dahej manufacturing facility in Gujarat, increasing its annual production capacity from 23,000 metric tonnes to approximately 30,000 metric tonnes. This investment follows a previous ₹300 crore infusion, bringing the total investment in the facility to ₹500 crore.
The Process Equipment division, which produces reactors, pressure vessels, columns, and heat exchangers, currently has an annual turnover of around ₹1,000 crore, with exports accounting for over 70% of this figure. The company anticipates a compound annual growth rate of 15-20% and aims to double its turnover within the next four to five years, according to Executive Vice President and Business Head, Hussain Shariyarr.
The expansion is driven by increasing demand from global green energy transition projects, including green hydrogen production and nuclear power sectors. The division is expected to benefit from India’s National Green Hydrogen Mission, which has allocated ₹37,000 crore for related projects, and the recently announced Nuclear Energy Mission, which has earmarked ₹20,000 crore for the development of Small Modular Reactors.
In addition to the Dahej expansion, the company is scaling down operations at its Vikhroli plant in Mumbai, focusing it primarily on domestic markets due to logistical challenges. All export orders will now be managed from the Dahej facility.
The enhanced Dahej facility will feature an extended fabrication yard capable of producing large and complex equipment, including units up to 16 meters in diameter and 140 meters in length. The facility will also incorporate over 80% automation and integrate Industry 4.0 technologies, such as IoT-based machining processes and predictive maintenance systems, to improve precision and operational efficiency. Additionally, a unique sea-going jetty will facilitate the direct loading and transportation of oversized equipment to international markets.
This expansion aligns with the company’s strategy to strengthen its presence in sectors like hydrogen and power by enhancing its capability to deliver specialized and large equipment. The Dahej facility, established in 2016, has been pivotal in manufacturing and delivering critical, over-dimensional consignments for global projects.
In 2024, the Process Equipment division successfully manufactured and dispatched over 20 critical pieces of equipment to two refineries in Mexico, highlighting its growing international footprint. These deliveries included advanced high-pressure reactors and large columns constructed with specialized Chrome Moly Vanadium Steel, underscoring the company’s capability in handling complex metallurgy requirements.
The ongoing expansion and strategic initiatives are set to bolster Godrej Enterprises’ position in the global process equipment manufacturing sector, aligning with India’s broader goals of promoting domestic manufacturing and clean energy projects.