Godrej Plans to Double Dahej PE Business Turnover, Leverage Green Energy Demand

Godrej Enterprises aims to double the turnover of its Process Equipment (PE) division within the next four to five years, leveraging the increasing global demand for green energy solutions.

To this end, the company has announced an investment of INR 200 crore for the second phase of expansion at its Dahej plant, which will significantly boost its manufacturing capacity.

The expansion will increase the Dahej facility’s annual manufacturing capacity from 23,000 metric tonnes (MT) to approximately 30,000 MT. Concurrently, the company is scaling down operations at its Vikhroli plant in Mumbai due to logistical constraints, restricting its activities there to the domestic market.

Hussain Shariyarr, Executive Vice President and Business Head of the PE division, highlighted that exports would primarily be managed through the Dahej facility. This follows an earlier investment of INR 300 crore in the plant’s first phase. The PE division specialises in manufacturing critical industrial components such as reactors, pressure vessels, columns, and heat exchangers.

“Our current topline is INR 1,000 crore, with exports contributing over 70 percent. We anticipate a compound annual growth rate (CAGR) of 15 percent to 20 percent and aim to double our revenue within the next four to five years,” Shariyarr said.

The company is capitalising on the growing demand for process equipment in green hydrogen production and nuclear power projects. A significant portion of future growth is expected to come from clean energy initiatives.

Godrej is positioning itself across the entire green energy supply chain to maximise opportunities. In India, the PE division faces competition from domestic giants like L&T Heavy Engineering as well as international players from Europe, South Korea, and China. The company’s strategy involves keeping the Vikhroli plant focused on local market needs while making Dahej the primary hub for global exports.

The firm is optimistic about growth in the sector, driven by government initiatives such as the National Green Hydrogen Mission, which has earmarked INR 37,000 crore for related projects. Additionally, the Union Budget 2025-26 has introduced a Nuclear Energy Mission with a funding allocation of Rs 20,000 crore to support the development of Small Modular Reactors (SMRs).

Shariyarr emphasised that Godrej is well-positioned to meet the increasing demand for nuclear power equipment. “We are among the few trusted fabricators for nuclear steam generators, reinforcing our stronghold in the nuclear energy sector,” he said.

The expanded Dahej plant will feature a state-of-the-art fabrication yard, capable of manufacturing large and complex process equipment, including components measuring up to 16 meters in diameter and 140 meters in length.

Over 80 percent of the facility’s operations will be automated, integrating Industry 4.0 technologies such as IoT-based machining processes and predictive maintenance systems to enhance precision and efficiency. Additionally, the facility includes a sea-going jetty, enabling seamless direct loading and transportation of oversized equipment for international markets.

With its latest investment and expansion strategy, Godrej Enterprises is poised to strengthen its leadership in the process equipment sector while contributing to India’s clean energy transition.