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CG Power and Industrial Solutions, an engineering firm of the Murugappa Group, has said it is on to a ₹662-crore capacity expansion. The company’s order intake for FY24 was ₹10,512 crore and as of March 2024, the unexecuted order book stood at ₹6,411 crore (₹4,458 crore).
“The company has in total, so far, approved ₹662 crore expansion projects, which will be funded through internal accruals. These projects are under implementation and expected to be completed in the next 18 months,” N Srinivasan, Managing Director of the company, said in the company’s latest annual report.
It is investing significantly in ramping up production capacities for motors, transformers, and switchgears, while it has forayed into semiconductor manufacturing and kicked off work for its Outsourced Assembly and Testing (OSAT) facility in Gujarat.
Enhancing capacity
In 2023-24, the ₹8,046-crore company initiated the expansion of its manufacturing capacity for instrument transformers and condenser bushings, medium voltage switchgear, and the GIS unit of its Switchgears Division situated at Nashik with a capital outlay of ₹155 crore. It operates switchgear factories at Nashik and Aurangabad in Maharashtra.
The proposed expansion will increase the capacity of instrument transformers and condenser bushings up to 2,494 units per annum, from 384 units, medium voltage switchgears up to 5,000 units per annum, from 1,800 units per annum and GIS unit up to 780 units per annum, from the existing capacity of 168 units per annum.
CG Power also kicked off the expansion of the production capacity of the large industrial machines (LIM) unit of the company situated at Mandideep, Bhopal, at an investment of ₹35 crore. This will increase the capacity of Large Industrial Machines up to 1,728 units per annum, from the existing capacity of 1,002 units per annum.
In FY23, the Board had approved the expansion of the manufacturing capacity of power transformers and distribution transformers units situated at Malanpur and Bhopal at an investment of ₹126 crore. The said expansion was for increasing the capacity from 17,000 MVA to 25,000 MVA for Power transformers and from 6,900 MVA to 9,900 MVA for distribution transformers.
Further to the above, approval has been provided during the year for an additional capacity expansion of power transformers (T3 unit) at an additional investment of ₹31 crore. This will increase the capacity for power transformers from 25,000 MVA to 35,000 MVA.
JV partners
The annual report also said the company would hold 92.34 per cent of the equity of the joint venture – CG Semi Pvt Ltd — that is establishing the OSAT unit in Gujarat at an investment of ₹7,600 crore over five years. Its JV partners for this project are Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd.
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