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CG Power and Industrial Solutions, a prominent engineering firm under the Murugappa Group, has announced a significant ?662-crore capacity expansion project. The company reported an impressive order intake of ?10,512 crore for FY24, with an unexecuted order book standing at ?6,411 crore as of March 2024.
N Srinivasan, Managing Director of CG Power, stated in the companys latest annual report, “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.”
The expansion focuses on enhancing production capacities for motors, transformers, and switchgears. Additionally, CG Power is venturing into semiconductor manufacturing and has initiated work on its Outsourced Assembly and Testing (OSAT) facility in Gujarat.
In the fiscal year 2023-24, CG Power, a ?8,046-crore company, embarked on expanding its manufacturing capacity for instrument transformers and condenser bushings, medium voltage switchgear, and the GIS unit of its Switchgears Division located in Nashik with a capital outlay of ?155 crore. The company operates switchgear factories in Nashik and Aurangabad, Maharashtra.
The expansion is set to boost the capacity of instrument transformers and condenser bushings from 384 to 2,494 units per annum, medium voltage switchgears from 1,800 to 5,000 units per annum, and the GIS unit from 168 to 780 units per annum.
Moreover, CG Power has begun enhancing the production capacity of its large industrial machines (LIM) unit in Mandideep, Bhopal, with an investment of ?35 crore. This project will increase the capacity of large industrial machines from 1,002 to 1,728 units per annum.
In FY23, the Board approved an expansion of the manufacturing capacity of power transformers and distribution transformers units in Malanpur and Bhopal with a capital outlay of ?126 crore. This expansion aims to increase 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.
Additionally, the company has approved an extra ?31 crore investment for further capacity expansion of power transformers (T3 unit), which will increase the capacity from 25,000 MVA to 35,000 MVA.
The annual report also highlighted CG Powers substantial investment in the OSAT unit in Gujarat, with a projected investment of ?7,600 crore over five years. CG Power will hold a 92.34% equity stake in the joint venture, CG Semi Pvt Ltd, alongside partners Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd. |
