CG Power to Invest ₹748 Crore in New Switchgear Plant

CG​‍​‌‍​‍‌​‍​‌‍​‍‌ Power & Industrial Solutions Ltd. has revealed its intention to establish a high-tech switchgear manufacturing unit in the western region of India. The company plans to invest Rs 748 crore on this greenfield project.

This venture outside the city is a significant move in the company's expansion plan to strengthen its hold in the rapidly growing Indian power equipment market and to increase its export volume.

The new facility is being built on a 35-acre plot with a built-up area of approximately 72,000 sq m and is anticipated to be ready in 33 months.

The plant, when it comes into operation, will increase CG Power's switchgear segment production capacity to twofold and also be able to serve a full range of products which include Medium Voltage (MV) and Extra High Voltage (EHV) switchgear, Substation Automation Systems, and Power Electronics solutions.

The instalment for the project will be made out of the company's internal resources, equity, and debt, thereby indicating a wise and balanced financing plan. The move is also in line with India's vision for industrial growth and energy infrastructure modernization, thus, it is a considerable injection into the local manufacturing sector.

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As per the company, this investment would enable CG Power to maintain its competitiveness in both the local and international markets and thus, it would be a source of creating lasting value for the stakeholders.

Powered by solid financial results—recording a revenue of Rs 2,649 crore and a profit of Rs 307 crore in a recent quarter—CG Power is on a continuous journey to enhance its status as a major player in the electrical equipment industry as well as a driver of India’s power sector ​‍​‌‍​‍‌​‍​‌‍​‍‌transformation.