CG Power to Invest ₹35.17 Crore to Expand HV GIS Manufacturing Capacity
CG Power and Industrial Solutions Limited has announced a ₹35.17 crore capital expenditure plan to significantly expand the manufacturing capacity of its Extra High Voltage (EHV) Gas Insulated Switchgear (GIS) business. The investment is aimed at addressing capacity constraints, supporting rising customer demand, and strengthening the company’s position in India’s growing power transmission and distribution sector.
The expansion will be funded through internal accruals and equity.
Key Highlights of the Capacity Expansion
- Total Investment: ₹35.17 crore
- Current Manufacturing Capacity: 228 Equivalent (EQ) Units
- Current Capacity Utilization (FY26): 91%
- Target Capacity by FY30: 600 EQ Units
- Implementation Timeline: 4 to 6 months
- Funding Source: Internal accruals and equity
Expansion to Address Capacity Constraints
CG Power stated that its existing High Voltage GIS manufacturing facility is operating close to full capacity, with utilization reaching 91% during FY26. The current plant faces infrastructure limitations, including constraints in:
- Shop floor space
- Assembly bays
- Testing facilities
- Material storage areas
These limitations have restricted the company’s ability to install additional machinery or production lines without affecting ongoing manufacturing operations.
The planned expansion is expected to eliminate these operational bottlenecks and create additional manufacturing capacity to support future growth.
Capacity to Increase to 600 EQ Units
Upon completion of the expansion project, CG Power aims to increase its peak manufacturing capacity from 228 Equivalent Units to 600 Equivalent Units by FY30, representing a substantial enhancement in production capability.
The project is expected to be completed within four to six months, enabling the company to respond more efficiently to increasing customer requirements.
Rising Demand Driving Investment
The company noted that strong order inflows and sustained demand for power transmission equipment have necessitated the capacity expansion.
The additional manufacturing capability will enable CG Power to:
- Execute a larger volume of orders
- Improve production efficiency
- Maintain delivery schedules
- Uphold high quality standards
- Support future growth in the power infrastructure sector
The expansion also positions the company to benefit from increasing investments in transmission and distribution infrastructure, renewable energy integration, and grid modernization.