CG Power & Industrial Solutions Ltd: Building India’s Power & Industrial Future

CG Power & Industrial Solutions Ltd, part of the Murugappa Group, has transformed itself from a legacy power equipment maker into a diversified industrial and technology leader. With strong promoter backing, a wide product portfolio, and bold diversification into semiconductors, the company is poised to be at the forefront of India’s infrastructure, energy, and industrial growth story.

Core Business Segments

1. Industrial Systems

This is the largest contributor to CG Power’s revenues, accounting for around 64% in FY25.

  • Motors & Generators:

    • Market leader in AC motors and India’s second-largest in AC generators and DC motors.

    • Manufactures a wide range of low-tension (LT) and high-tension (HT) motors, covering applications from domestic pumps to heavy industrial machinery.

    • Fluxtron: Newly launched high-efficiency medium-voltage induction motors designed for energy savings.

  • Drives & Automation: Offers drives up to 3 MW and control systems for industrial automation.

  • Railway Systems:

    • Products include traction motors, propulsion systems, and signaling equipment.

    • Key supplier to Indian Railways and metro projects.

    • Received orders to supply traction motors and propulsion for 10 Vande Bharat trainsets (~₹400-450 Cr order).

  • Exports & Emerging Areas:

2. Power Systems

This division contributes about 35% of revenues and is growing faster than Industrial Systems.

  • Transformers:

    • Manufactures power and distribution transformers, from small distribution units to extra high-voltage (EHV) transformers.

    • Current capacity ~20,000 MVA, set to expand to 40,000 MVA by September 2025, and further to 85,000 MVA by FY28.

    • Recently secured a record ₹641 Cr order from Power Grid for 765 kV transformers.

  • Switchgears & Circuit Protection:

  • Turnkey EPC & Substations:

    • Offers end-to-end transmission and distribution (T&D) solutions through EPC contracts and substation projects.

  • Global Expansion:

    • Targeting opportunities in transformer exports amid rising global demand.

New Growth Engines

  1. Semiconductors:

    • Joint venture with Renesas (Japan) and Stars Microelectronics (Thailand) to set up a ₹7,600 Cr semiconductor facility in Sanand, Gujarat.

    • Mini-plant expected to start in 2026, full-scale plant by 2027.

    • Will manufacture ~15 million units/day, positioning CG as a key player in India’s semiconductor self-reliance drive.

    • Acquired Axiro (Radio Frequency Semiconductor Components) from Renesas, integrated from Q1 FY26.

  2. Railways & Safety Systems:

    • Acquired 55% in G.G. Tronics, which supplies the Indian Railways’ collision avoidance system (KAVACH).

    • Already executing ₹148 Cr order for station-level KAVACH; large pipeline expected as India rolls out nationwide deployment.

  3. Consumer Products:

    • Focus on pumps, fans, and smart home energy devices.

    • Launched SmartSENSE, India’s first cordless, float-free automatic water pump controller (April 2025).

  4. Service Business Transformation:

    • Moving from transactional service orders to long-term “product-as-a-service” contracts.

    • Exploring motor-as-a-service models, where customers pay for efficiency outcomes rather than product ownership.

  5. Real Estate Value Unlock:

    • Entered joint development with K Raheja Corp for redevelopment of CG House, a prime property.

Distribution & Manufacturing Strength

  • 18 manufacturing facilities across India.

  • 9 regional offices, 450+ channel partners, 500+ service partners.

  • Strong after-sales service ecosystem ensures long-term customer relationships.

Recent Financial Highlights (Q1 FY26)

  • Standalone revenue: ₹2,643 Cr (+25% YoY).

  • PAT: ₹286 Cr (+23% YoY).

  • Free cash flow: ₹339 Cr (119% of PAT).

  • Order intake: ₹4,764 Cr (+56% YoY).

  • Order backlog: ₹11,971 Cr (+70% YoY).

  • Consolidated revenue: ₹2,878 Cr (+29% YoY), PAT: ₹267 Cr (+11% YoY).

  • Raised ₹3,000 Cr via QIP (oversubscribed 3x) with strong participation from global investors.

Conclusion

CG Power & Industrial Solutions is reshaping itself from an electrical equipment manufacturer to a multi-dimensional industrial and technology powerhouse. Its leadership in motors, transformers, and switchgears provides a stable foundation, while new growth engines like semiconductors, EV motors, railways safety tech, and service innovation offer exponential growth potential.

Backed by Murugappa Group’s governance and financial discipline, CG Power is well-positioned to capture opportunities in India’s infrastructure boom, global T&D expansion, and semiconductor self-reliance. For investors and industry watchers, CG Power stands out as one of India’s most exciting structural growth stories for the coming decade.

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