The board of CG Power & Industrial Solutions Ltd (CG) has approved further expansion in manufacturing capacity of power transformers.
The CG board, on October 21, 2024, approved further expansion of the company’s power transformer manufacturing capacity from 35,000 MVA to 40,000 MVA, with an estimated outlay of Rs.27 crore.
It may be recalled in that in FY24 (on October 20, 2023), CG approved capacity expansion of power transformers at the company’s “T3” unit at Malanpur, Madhya Pradesh, from 25,000 MVA to 35,000 MVA, with an investment of Rs.31 crore.
This capacity expansion from 25,000 MVA to 35,000 MVA is currently underway and this is expected to commission by March 2025, according to Amar Kaul, MD & CEO, CG, while addressing a recent earnings call. Kaul also indicated that capacity expansion of motors and switchgears is also under implementation and should be completed within a year or so.
Following a proposal approved in FY23, power transformer manufacturing capacity was enhanced from 17,000 MVA to 25,000 MVA at an investment of Rs.126 crore. This outlay also included expansion in distribution transformer manufacturing capacity at the Bhopal unit from 6,900 MVA to 9,900 MVA.
Order intake in Q2FY25
CG’s overall order intake in Q2 (July to September) of FY25 stood at Rs.3,196 crore, up 43 per cent year-on-year. The outstanding order book position, as of September 30, 2024, was Rs.7,831 crore, representing a 50 per cent growth over the comparable position in 2023.
Order intake in the Industrial Systems division grew by 56 per cent, year-on-year, in Q2FY25 as against 31 per cent seen in the case of Power Systems. (See table).
CG operates through two main segments – Industrial Systems and Power Systems. While the Power Systems division includes transformers, reactors, switchgear (circuit breakers, instrument transformers and bushings), the Industrial Systems division comprises motors and generators.
Also read: CG reports 45 per cent growth in order book
Featured photograph (source: CG) shows a 50 MVA, 132kV power transformer supplied by CG for the Bhopal metro rail project in Madhya Pradesh
