Production Commenced — What It Means
CG Power has successfully operationalized S3 Unit-II in Nashik, Maharashtra, focusing on Extra High-Voltage circuit breakers. This new plant complements the existing S3 Unit-I in Ambad, which produces breakers up to 800kV. The unit adds an annual capacity of 7,200 units, specifically targeting the 33kV to 245kV range.
This expansion is designed to address surging domestic and international demand for reliable power transmission equipment. By integrating advanced infrastructure like 500kV testing laboratories, the facility ensures high-quality output for critical sectors including renewable energy, railways, and utilities, while doubling the company's existing switchgear manufacturing footprint.
Path to This Milestone
- Project announced as part of a larger greenfield switchgear business initiative in October 2025
- Estimated total project cost for the overarching greenfield venture is ₹748.20 Crore
- The current S3 Unit-II facility utilized approximately 97% of the capex incurred for this specific phase
- Facility construction incorporated sustainability features like zero liquid discharge and rainwater harvesting
- Operational launch achieved within the planned development timeline for the Nashik manufacturing cluster
Business Overview
As a prominent engineering conglomerate under the Murugappa Group, CG Power operates through two primary segments: Industrial Systems and Power Systems. Its portfolio spans traction motors for Indian Railways, transformers, switchgears, and consumer appliances. Recently, the company diversified into the semiconductor industry, establishing an Outsourced Semiconductor Assembly and Testing facility and acquiring a Radio Frequency components business.
With 18 manufacturing units in India and one in Sweden, the firm serves critical infrastructure projects globally. This latest expansion strengthens its leadership in the heavy electrical equipment sector by mitigating existing capacity constraints and broadening its technical testing capabilities.
Financial Context
The company reported a consolidated revenue of ₹12,418 crore for FY26, reflecting steady growth in its core engineering businesses. The ₹39.49 Crore investment in the new Nashik facility was funded entirely through internal accruals, demonstrating strong cash generation. Before this addition, the existing unit operated at 85% capacity utilization, producing 9,000 units annually.
The 80% capacity boost is strategically timed to capitalize on sector-wide tailwinds, where sector revenue growth is currently trending at 14.81%. With a TTM Net Profit of ₹1,206.27 crore and a high momentum score, the company continues to scale its manufacturing assets to sustain its financial trajectory.
