CG Power plans ₹400 cr. expansion in next two years

‘Three principal pillars are expansion of capacity, enhanced focus on exports and accelerated technological advancements’

As part of its future growth strategy, CG Power and Industrial Solutions will expand capacity by investing ₹400 crore over the next two years, said chairman Vellayan Subbiah. The Murugappa Group firm aims to increase exports revenue by 5-20% over the next 4-5 years, he added.

“In line with our future growth strategy, we are initiating the implementation of three principal pillars – expansion of capacity, enhanced focus on exports and accelerated technological advancements,” Mr. Subbiah said in the latest annual report.

“We believe that these pillars are complementary and will fuel the next phase of our growth,” he said.

According to the plan, motor production capacity would be substantially expanded at Ahmednagar and Goa plants and transformer capacity at Bhopal and Malanpur plants. This would involve an aggregate outlay of about ₹400 crore over the next two years and would be met through internal accruals.

The capacity expansion aims not only to debottleneck and modernise existing facilities, but also to add new capacity, he said.

With regard to exports, he said that CG Power was developing a detailed strategy that laid out specific geographies, defines product offerings, and determines the go-to-market strategy. The company is confident of increasing the exports revenue from 5-20% over the next 4-5 years.

“Our robust R&D mechanism has kept us technologically relevant over the years and has actively worked on future products & technologies,” he said, speaking about the third pillar. “We continue to strengthen our R&D efforts and explore collaborative partnerships to augment our internal efforts,” he added.