"CG Power Announces ₹347-Cr Capacity Expansion Plan for Multiple Units"

CG Power and Industrial Solutions, a prominent subsidiary of the Murugappa Group, is set to make a substantial investment of approximately ₹347 crore, which includes its ongoing projects, to expand the production capacity of various units within the company. This strategic move comes on the heels of a robust performance, with an impressive new order intake of ₹2,232 crore in the second quarter of the fiscal year. As of September 30, 2023, the company maintains a healthy unexecuted order book of ₹5,229 crore.

A significant portion of the investment, approximately ₹155 crore, will be allocated to enhance the manufacturing capabilities of instrument transformers, condenser bushings, medium voltage switchgear, and Gas Insulated Switchgear (GIS) units at its Switchgears Division complex in Nashik. This expansion initiative is in direct response to the burgeoning market demand, as highlighted in a recent company statement.

In a move to meet the growing demand for Large Industrial Machine (LIM) units, CG Power plans to expand its manufacturing capacity at Mandideep, Bhopal, with a capital outlay of ₹35 crore. This expansion endeavor is expected to elevate the annual LIM production capacity from the current 1,002 units to an impressive 1,728 units. The existing capacity utilization is hovering at approximately 98 percent. The project is anticipated to be completed over the course of 12 months.

Another pivotal expansion project on the horizon involves increasing the capacity of power transformers (T3 unit) in Bhopal, with an investment of ₹31 crore. This expansion is projected to augment the capacity of power transformers from 25,000 MVA to an impressive 35,000 MVA. As of the latest update, the existing capacity utilization stands at 75 percent. This expansion initiative is set to be executed within 15 months, in conjunction with the previously announced ₹126-crore project, which was unveiled in January this year. The earlier project aimed to enhance the capacity of power transformers and distribution transformers at CG Power's facilities in Malanpur and Bhopal, with a goal to boost 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.

HBL