CG plans greenfield power transformer facility, Rs.700-crore capex approved
- January 29, 2025
CG Power & Industrial Solutions Ltd (CG) has planned a major expansion in its manufacturing capacity for power transformers.
In a meeting on January 28, 2025, the CG board approved investment of Rs.712 crore in setting up a greenfield manufacturing plant for power transformers.
This plant, for which land identification is in progress, will have capacity the manufacture 45,000 MVA worth of power transformers annually. The greenfield plant is expected to commission during FY28 (by March 31, 2028).
This expansion will take CG’s overall annual manufacturing capacity of power transformers to 85,000 MVA.
It is learnt that CG will be manufacturing power transformers in the voltage class 220kV to 765kV at the new site, catering to both the domestic and international markets.
According to information available, CG’s current power transformer capacity is on course to touching 40,000 MVA per year.
In October 2023, the CG board approved manufacturing capacity expansion of power transformers at the company’s Malanpur unit in Madhya Pradesh from the then-existing 25,000 MVA to 35,000 MVA. This expansion is understood to be completed by March 2025.
A further capacity expansion from 35,000 MVA to 40,000 MVA was approved in October 2024. This expansion is believed to be underway.
Distribution transformers: CG is also expected to commission capacity expansion of distribution transformers over the next 2-3 months. According to information available with T&D India, CG is in the process of expanding the distribution transformer manufacturing capacity at its Bhopal plant in Madhya Pradesh, from 6,900 MVA to 9,900 MVA per year. CG expects supplies distribution transformers largely to industrial clients rather that power utilities, it is learnt.
Order book
CG reported impressive growth its order inflow during Q3 (October to December) of FY25. During the period, order inflows in the Power Systems business nearly doubled year-on-year to reach Rs.1,759 crore. As of December 31, 2024, the unexecuted order book position of this division stood at a high of Rs.5,984 crore.
The Industrial Systems division also reported significant growth in Q3FY25 order inflows, at 37 per cent, and a 50 per cent rise in the outstanding order book as of December 31, 2024. (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.
CG’s overall order book (including that of its domestic and international subsidiaries) was Rs.9,706 crore, as of December 31, 2024, marking a 70 per cent year-on-year increase.
Also read: CG reports 45 per cent growth in order book
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