CG Power to complete capacity expansion worth Rs 6.6 Bn
POWER & RENEWABLE ENERGY

CG Power to complete capacity expansion worth Rs 6.6 Bn

The Murugappa Group's engineering company, CG Power and Industrial Solutions, has announced that it is beginning a Rs 6.62 billion capacity expansion. As of March 2024, the company's unexecuted order book was at Rs 64.11 billion, while its order intake for FY24 was Rs 105 billion. "The corporation has authorised growth projects totaling Rs 6.62 billion so far; internal accruals will be used to fund these initiatives. According to the most recent annual report of the business, N. Srinivasan, Managing Director, "these projects are under implementation and expected to be completed in the next 18 months." It is spending heavily on expanding its production capacity for switchgear, transformers, and motors. In addition, it has begun construction on its Outsourced Assembly and Testing (OSAT) facility in Gujarat and ventured into the semiconductor manufacturing industry. Increasing capability The Rs 80 billion corporation started investing Rs 1.55 billion in capital expenditures in 2023?2024 to expand its production capacity for medium voltage switchgear, instrument transformers, and condenser bushings. The GIS unit of its Switchgears Division is located in Nashik. It runs switchgear plants in Maharashtra's Aurangabad and Nashik. The planned extension would raise the capacity of medium voltage switchgears from 1,800 units annually to 5,000 units annually and instrument transformers and condenser bushings from 384 units to 2,494 units annually. With an expenditure of Rs 350 million, CG Power has initiated the enlargement of the large industrial machines (LIM) plant of the firm, which is located in Mandideep, Bhopal, in terms of production capacity. By doing this, the current capacity of large industrial machines?1,002 units annually?will be increased to 1,728 units annually. The Board authorised an investment of Rs1.26 million in FY23 to increase the manufacturing capacity of the power transformer and distribution transformer factories located in Malanpur and Bhopal. The aforementioned extension was intended to raise the capacity of distribution transformers from 6,900 MVA to 9,900 MVA and power transformers from 17,000 MVA to 25,000 MVA. In addition to the aforementioned, permission has been granted for a T3 unit power transformer capacity increase throughout the year, contingent upon an additional expenditure of Rs 310 million. Power transformer capacity would rise from 25,000 MVA to 35,000 MVA as a result. JV associates In addition, the annual report said that the business will own 92.34% of the stock in the joint venture, CG Semi Pvt Ltd, which is setting up the OSAT plant in Gujarat with a five-year investment of Rs. 76 billion. Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd. are its joint venture partners on this project.

The Murugappa Group's engineering company, CG Power and Industrial Solutions, has announced that it is beginning a Rs 6.62 billion capacity expansion. As of March 2024, the company's unexecuted order book was at Rs 64.11 billion, while its order intake for FY24 was Rs 105 billion. The corporation has authorised growth projects totaling Rs 6.62 billion so far; internal accruals will be used to fund these initiatives. According to the most recent annual report of the business, N. Srinivasan, Managing Director, these projects are under implementation and expected to be completed in the next 18 months. It is spending heavily on expanding its production capacity for switchgear, transformers, and motors. In addition, it has begun construction on its Outsourced Assembly and Testing (OSAT) facility in Gujarat and ventured into the semiconductor manufacturing industry. Increasing capability The Rs 80 billion corporation started investing Rs 1.55 billion in capital expenditures in 2023?2024 to expand its production capacity for medium voltage switchgear, instrument transformers, and condenser bushings. The GIS unit of its Switchgears Division is located in Nashik. It runs switchgear plants in Maharashtra's Aurangabad and Nashik. The planned extension would raise the capacity of medium voltage switchgears from 1,800 units annually to 5,000 units annually and instrument transformers and condenser bushings from 384 units to 2,494 units annually. With an expenditure of Rs 350 million, CG Power has initiated the enlargement of the large industrial machines (LIM) plant of the firm, which is located in Mandideep, Bhopal, in terms of production capacity. By doing this, the current capacity of large industrial machines?1,002 units annually?will be increased to 1,728 units annually. The Board authorised an investment of Rs1.26 million in FY23 to increase the manufacturing capacity of the power transformer and distribution transformer factories located in Malanpur and Bhopal. The aforementioned extension was intended to raise the capacity of distribution transformers from 6,900 MVA to 9,900 MVA and power transformers from 17,000 MVA to 25,000 MVA. In addition to the aforementioned, permission has been granted for a T3 unit power transformer capacity increase throughout the year, contingent upon an additional expenditure of Rs 310 million. Power transformer capacity would rise from 25,000 MVA to 35,000 MVA as a result. JV associates In addition, the annual report said that the business will own 92.34% of the stock in the joint venture, CG Semi Pvt Ltd, which is setting up the OSAT plant in Gujarat with a five-year investment of Rs. 76 billion. Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd. are its joint venture partners on this project.

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