CG Power & Industrial Solutions Ltd (CG) has reported a 22 per cent year-on-year growth in is new order inflow in Q2 (July to September) of FY24.
In a release, CG said that during Q2 of FY24, the new order inflow, at Rs.2232 crore, was 22 per cent higher than the comparable level in FY23.
As of September 30, 2023, the outstanding order book position stood at Rs.5,229 crore that was 44 per cent higher than the corresponding level in FY23.
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.
While the new order inflow was almost equal in the company’s two business verticals, the year-on-year growth in new order inflow in Q2 of FY24 was appreciably higher in the power systems business.
It may be recalled that CG was acquired by Tube Investments of India (TI; part of Murugappa Group) on November 26, 2020. Post takeover by TI, CG has staged an impressive turnaround.
Also read: CG Sees 47 Per Cent Growth In Q1FY24 Order Inflow
Capacity expansion
The board of directors of CG, in a meeting on October 20, 2023, approved investment of Rs.221 crore in manufacturing capacity expansion across various products. The biggest investment, of Rs.155 crore, will go towards expansion of switchgear manufacturing capacity at the company’s Nashik plant in Maharashtra. At the Bhopal plant in Madhya Pradesh, Rs.31 crore will be invested to expand the manufacturing capacity of power transformers by 10,000 MVA. Another Rs.35 crore will go towards the HT motors capacity expansion, also at the Bhopal plant.
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