### **Overview** CG Power & Industrial Solutions Ltd. (CGPISL) is an 87-year-old electrical engineering conglomerate headquartered in Mumbai, India, and a part of the Murugappa Group since November 2020. With a strong legacy in power and industrial systems, the company has evolved into a diversified engineering powerhouse, operating across **two core business lines**: 1. **Industrial Systems** – Encompassing motors, drives, railway products, and fast-moving electrical goods (FMEG). 2. **Power Systems** – Covering transformers, switchgear, and turnkey power transmission and distribution (T&D) solutions. The company operates 18 manufacturing units across 9 locations in India and one in Sweden, supported by a robust network of 5 regional offices, 14 branch offices in India, and 5 international offices. It employs approximately **3,408 people**. --- ### **Strategic Diversification & New Growth Initiatives** #### **1. Semiconductor Sector Entry – CG Semi JV** - In **August 2025**, CG launched **CG Semi**, one of India’s first **Outsourced Semiconductor Assembly and Test (OSAT)** facilities, in Sanand, Gujarat. - This is a **joint venture** between CG Power (Murugappa Group), **Renesas Electronics Corporation**, and **Stars Microelectronics**, with CG holding a 92.3% stake. - The project involves a **total investment of ₹7,600 crores (~$870 million)** over five years, with plans to build two state-of-the-art plants (G1 & G2). - The facility will produce **legacy and advanced semiconductor packages** (SOIC, QFN, BGA, FCQFN, FCBGA) for applications in **automotive, defence, IoT, and industrial systems**. - Production capacity is expected to scale to **150 million units per day**, creating around **5,000 jobs**. - This strategic foray aligns with India’s semiconductor mission and supports the **"Make in India, for the World"** vision. #### **2. Semiconductor Design – Axiro Semiconductor** - In **February 2025**, CG acquired **Renesas Electronics’ Radio Frequency (RF) components business**, valued at ~$56 million in FY23. - The acquisition brought **IP, equipment, inventory, customer contracts, and skilled personnel**, leading to the formation of **Axiro Semiconductor Private Ltd.** - Axiro aims to establish a global presence in **fabless semiconductor design**, focusing on RF and power management ICs. - The company has incorporated semiconductor subsidiaries in the **USA, Turkey, and China**, signaling a global expansion in chip design. --- ### **Capacity Expansion & Capital Projects** #### **Switchgear Greenfield Plant (Western India)** - **Board-approved in October 2025**, the new switchgear plant will be established on **35 acres** with **72,000 sq. meters** of built-up area in Western India. - It will **double CG’s existing switchgear capacity** and produce **medium and extra-high voltage (EHV) switchgear**, **substation automation systems**, and **power electronics solutions**. - **Estimated project cost**: ₹748.20 crores (net of taxes). - **Execution timeline**: 33 months, funded via **internal accruals, equity, debt, or a combination thereof**. #### **Transformer Capacity Expansion** - In **January 2025**, CG received board approval to set up a **greenfield transformer plant** in Western India with a capacity of **45,000 MVA**. - **Project cost**: ₹712 crores; expected **completion by FY2028**. - This will increase CG’s **total transformer capacity to 85,000 MVA**, driven by demand from **grid modernization, renewable energy, and industrial electrification**. - The expansion supplements ongoing investments in **Malanpur and Bhopal**, totaling ₹157 crores. #### **Legacy Capacity Enhancements** - **Motors expansion**: Approved capex of ₹327 crores in 2023 for automation and Industry 4.0 upgrades to boost EV motor and inverter production. - **Switchgear & instrument transformers**: Existing high-utilization facilities in Nashik and Aurangabad are undergoing capacity upgrades, with plans to expand output from **1,800 to 5,000 MV switchgear units annually**. --- ### **Railway Systems & Global Electrification Push** #### **Strategic Focus on Indian Railways & Vande Bharat** - CG is a **strategic technology partner** to Indian Railways, supplying **traction motors, propulsion systems, signaling relays, and transformers**. - In **March 2025**, CG secured a **long-term supply and service agreement** for **Vande Bharat trainsets**, valued at ₹400–450 crores for 10 trainsets, plus a **35-year service contract**. - The company is advancing the development and scaling up of **traction motors for Vande Bharat trains**, with next-gen motors for **9000 HP locomotives** already tested under RDSO supervision. #### **G.G. Tronics Acquisition (Rail Safety & Signaling)** - In **July 2024**, CG acquired a **55.6% stake in G.G. Tronics India Pvt. Ltd.** (Bengaluru), a specialist in **railway safety signaling systems**. - G.G. Tronics is a developmental vendor for **KAVACH (Train Collision Avoidance System)**, nearing RDSO approval for **Version 4.0 with LTE support**. - The acquisition enables CG to expand into **electronic interlocking, moving block systems, and CBTC for metro rails**, both in India and globally. --- ### **Global Expansion & Strategic Partnerships** #### **CG USA & FLANDERS Partnership (U.S. Rail Market)** - In **August 2025**, **CG USA** entered a strategic agreement with **FLANDERS Electric Motors Service, LLC** to expand in the **U.S. rail market**. - FLANDERS brings **local service footprint, rapid repair capabilities, and quality assurance**, enabling **localized support**. - The partnership will deliver **advanced traction motor solutions**, combining CG’s manufacturing with FLANDERS’ motor expertise, focusing on **cost-effective, timely replacements and refurbishments**. - The U.S. rail network spans **140,000 miles**, with increasing demand from **Class I railroads**. #### **International Market Penetration** - **Africa**: Orders secured from Nigeria, Burkina Faso, Ghana, and Tunisia; entry into South America (Suriname, Brazil). - **Europe**: Approved for **420kV instrument transformers** by IPTO (Greece); secured frame contracts with ENEL (Italy); commissioned a GIS substation in Ukraine. - **Middle East & North Africa**: Increased presence via Dubai regional office; secured orders for GIS, bushings, and switchgear. - **Southeast Asia**: Entered Philippines and Vietnam with Dead Tank Breakers and GIS supplies. --- ### **Product & Technology Leadership** #### **Power Systems Division – Transformers** - Designs and manufactures **power transformers (25 kVA–1,500 MVA, 11–765 kV)** and **distribution transformers (160 kVA–4 MVA)**. - Key innovations: - **315 MVA, 400kV dual LV transformer** for solar applications – **highest tested in India**. - **800kV SF6 circuit breakers**, **245kV polymeric CTs**, and **550kV lightning arresters**. - **Ester oil-filled transformers** for enhanced safety, longer life, and environmental compliance. - **800kV bushings** – only Indian company with domestic production capability, recognized under **Aatmanirbhar Bharat**. #### **Switchgear & Protection Systems** - Offers **EHV** (33–800 kV) and **MV** (3.3–40.5 kV) solutions including: - GIS, AIS, ring main units, SF6 circuit breakers, surge arresters, instrument transformers. - Developed **36kV eco-friendly GIS** using SF6 alternatives. - Launched **SmartSENSE water pump** and **Arista-S/V RMUs** for smart distribution. - Supplies **numerical protection relays** (Aegis series), **FRTUs**, and SCADA systems. #### **Industrial Systems – Motors & Drives** - **Market leader in LT motors** (35% share), **hazardous area motors** (>60% share), and **IE efficiency standards**. - Pioneered **IE5 Ultra Premium efficiency motors** in India, eliminating rare earth materials. - **Drives & Automation (via CG D&A)**: - Offers **AC drives (0.75–4,000 kW)**, **solar drives**, **AFE drives**, **soft starters**, and **PLCs**. - Showcased **Emotron Modular Converters** at SPS 2024 (Nuremberg), targeting green energy. - Launched **Power Conversion Systems (PCS)** for **battery energy storage** with grid-forming and anti-islanding features. --- ### **Sustainability & Innovation** - **Eco-friendly product development**: Ester oil transformers, SF6-free GIS, low-noise shunt reactors. - **IoT & Digitalization**: - **Smart Controller**: IoT-based transformer health monitoring to reduce AT&C losses. - **Smart Motors**: Enable remote monitoring, predictive maintenance, and performance analytics. - **EmoDrive app** (Bluetooth/Wi-Fi) for drive control and diagnostics. - **R&D focus** on EV traction motors, nuclear-grade components, and smart grid integration. --- ### **Corporate Governance & Leadership** - **Mr. Amar Kaul**: Appointed **Managing Director & CEO** in July 2024, bringing 30+ years of experience from Ingersoll Rand, Bharat Forge, and Delphi. - **Mr. Vellayan Subbiah**: Chairman of Murugappa Group, providing strategic oversight. - The company emphasizes **governance, operational excellence, and sustainability** as core pillars. --- ### **Financial & Market Positioning (as of FY25)** - **Transformer Market Share** (Sep FY24): - 7.8% in 50–500 MVA - 5.6% in distribution transformers - **Switchgear Market Share**: - 29% in gas circuit breakers - 23% in current transformers (33–800 kV) - 21% in surge arresters - **Motors Market Share**: - 35% in LT AC motors - 16% in large industrial motors (high-growth segment) - 26% in FHP motors