CG Power and Industrial Solutions, part of the Murugappa Group, announced a ₹662-crore capacity expansion plan. The company aims to complete this expansion within the next 18 months. For the financial year 2024, CG Power reported an order intake of ₹10,512 crore and had an unexecuted order book of ₹6,411 crore.
Managing Director N Srinivasan stated that the expansion projects are funded through internal resources and are currently underway. The company is increasing production capacities for motors, transformers, and switchgears. It is also starting semiconductor manufacturing and setting up an Outsourced Assembly and Testing (OSAT) facility in Gujarat.
Expanding Capacity
In 2023-24, CG Power started expanding its manufacturing capacity for various products that included Instrument transformers and condenser bushings: increasing from 384 to 2,494 units per year, Medium voltage switchgears: increasing from 1,800 to 5,000 units per year and GIS unit: increasing from 168 to 780 units per year.
The company is also expanding its large industrial machines (LIM) unit in Mandideep, Bhopal, investing ₹35 crore to increase capacity from 1,002 to 1,728 units per year.
In addition, the company is expanding its power transformers and distribution transformers units in Malanpur and Bhopal, investing ₹126 crore to increase capacity from 17,000 MVA to 25,000 MVA for power transformers and from 6,900 MVA to 9,900 MVA for distribution transformers. An additional ₹31 crore investment will further increase the power transformers capacity to 35,000 MVA.
Joint Venture in Gujarat
CG Power will hold a 92.34% stake in a joint venture, CG Semi Pvt Ltd, which is establishing the OSAT unit in Gujarat with an investment of ₹7,600 crore over five years. The JV partners are Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd.
