CG Power Bags ₹450 Crore Deal

CG Power and Industrial Solutions, a well-known name in the engineering sector, has bagged a major order from Kinet Railway Solutions to supply essential railway products. These include propulsion kits, motors, transformers, and other components for the manufacturing of 10 Vande Bharat trainsets. This is a major win for the company as it further expands its footprint in India's railway sector.

The initial contract is worth ₹400 crore-₹450 crore. But that's not all - the company has also signed a long-term 35-year service agreement, ensuring a continued partnership for the maintenance and servicing of these railway products.

CG Power is no stranger to the railway sector. With a legacy of over 86 years, the company has been manufacturing traction motors, propulsion systems, and signalling equipment. Recently, it also entered the Train Collision Avoidance System (TCAS) space, known as KAVACH, which enhances railway safety.

The company has been a part of the Murugappa Group since 2020, a well-diversified conglomerate with businesses spanning across engineering, agriculture, and financial services. CG Power operates 18 manufacturing plants across India and Sweden and employs over 3,113 people.

In FY24, CG Power reported consolidated revenues of ₹8,046 crore (USD 964 million), highlighting its strong position in the industrial and power sectors. With this new railway order and long-term contract, CG Power continues to strengthen its presence in India’s fast-growing railway infrastructure.