CG Power and Industrial Solutions Limited key Q4 FY25 initiatives

CG Power and Industrial Solutions Limited is strategically positioning itself as a diversified industrial and          technology player through acquisitions and capacity expansions.

1. Acquisition of G.G. Tronics India Pvt. Ltd. (GGT)

• Date: Effective from August 20, 2024

• Deal Size: ₹319.38 crore

• Structure: Combination of equity shares and CCPS

• Impact:

  • GGT became a subsidiary of CG.

  • Post-acquisition, GGT secured a major ₹500–600 crore order for Train Collision Avoidance System (TCAS / KAVACH).

  • This order includes supply, installation, testing, commissioning, and 11 years of AMC, adding annuity-like revenue.

Strategic View:

• Strengthens CG’s presence in the railway signaling and safety tech domain.

• TCAS is a Make in India push; future orders likely from Indian Railways.

🔹 2. Semiconductor Foray: CG Semi Pvt. Ltd.

• Entity: Wholly owned subsidiary to set up OSAT (Outsourced Semiconductor Assembly and Testing) unit

• Support: Agreement with India Semiconductor Mission (ISM), MeitY

• Incentive: Eligible for subsidy up to ₹3,501 Cr for capex

• Capex So Far:

  • ₹125 Cr in Q4 FY25

  • ₹173 Cr in FY25

Strategic View:

• Enters critical, high-value semiconductor value chain, aiding national self-reliance goals.

• Long-gestation but high-potential strategic move.

• Could attract partnerships with global semiconductor players in future.

🔹 3. Greenfield Expansion of Transformer Capacity

• Project: New plant to add 45,000 MVA capacity

• Investment: ₹712 Cr (net of taxes)

• Completion Target: FY 2027-28

• Goal: Raise total transformer capacity to 85,000 MVA

Strategic View:

• Capitalizes on growing domestic and export demand for power equipment (due to grid upgrades, renewables, EV infra).

• Aims to retain leadership in power transformers.

                             In pursuit of its strategic objectives, CG Power and Industrial Solutions Limited has outlined key Q4 FY25 initiatives that are poised to propel the company towards enhanced growth and market resilience. These initiatives underscore the company’s commitment to innovation, market competitiveness, and sustainable performance. The strategic focus on Q4 FY25 reflects CG Power and Industrial Solutions Limited’s dedication to fostering sustainable growth and delivering value to its stakeholders.

🔹 4. Acquisition of RF Components Business from Renesas

• Deal with: Renesas Electronics America Inc.

• Status:

  • Regulatory approvals (incl. CFIUS) obtained

  • Control transferred post-March 31, 2025

Strategic View:

• Adds RF capability, expanding CG’s footprint into telecom, radar, defense, and wireless communications.

• Diversifies away from traditional industrial and power segments.

• Potential for cross-selling and integration into CG Semi in the future.

🔚 Summary View

🧠 Analyst Perspective:

CG Power is aggressively transforming from a legacy industrial company into a multi-tech enterprise with exposure to:

• Electrification (transformers)

• Semiconductors

• Rail Safety Systems

• RF Components