CG Power Rolls Out First Transformer from ₹792 Crore Sehore Plant, Expanding Capacity to 120,000 MVA
CG Power and Industrial Solutions Limited (NSE: CGPOWER | BSE: 500093) has achieved a major manufacturing milestone with the rollout of the first power transformer from its new greenfield manufacturing facility at Sehore, Madhya Pradesh.
The facility is part of CG Power’s previously announced expansion of its transformer business and represents a significant increase in the company’s power-transformer manufacturing capacity.
The company has invested ₹792 crore in the project, which is being financed through a combination of Qualified Institutional Placement (QIP) proceeds and internal accruals.
First Transformer Rolled Out from New Sehore Facility
CG Power rolled out the first transformer from the new plant on September 4, 2026, marking the transition of part of the greenfield facility into operations.
The plant is being developed at Sehore, Madhya Pradesh, on a 50-acre site and is designed to manufacture high-voltage power transformers ranging from 220 kV to 1200 kV class.
According to the company, the facility is designed to support the rollout of approximately 35 power transformers per month.
The project was originally announced as a 45,000 MVA capacity addition to CG Power’s transformer manufacturing operations.
Transformer Capacity to Reach 120,000 MVA
CG Power currently has transformer manufacturing capacity of:
- T3: 65,000 MVA
- T2: 10,000 MVA
The existing capacity utilisation is stated at 100%.
The Sehore facility will add another 45,000 MVA of capacity once fully commissioned.
This will take CG Power’s total transformer manufacturing capacity to approximately:
120,000 MVA
The new facility is being commissioned in phases. A portion of the facility is already operational with an installed manufacturing capacity of 10,000 MVA, while the remaining sections are expected to be commissioned progressively.
This phased commissioning means the full 45,000 MVA capacity will not become operational immediately.
Why the Capacity Expansion Matters
The expansion comes at a time when demand for power-transmission infrastructure is increasing.
CG Power has identified several key demand drivers for the new facility, including:
- Renewable-energy projects
- Data centres
- Power transmission infrastructure
- Railways
- Utilities
- Oil and gas projects
- Export markets
The increasing integration of renewable energy into India’s electricity grid requires significant investment in transmission infrastructure, including high-voltage transformers.
At the same time, rapid growth in data centres and electricity consumption is increasing demand for power infrastructure and grid connectivity.
India’s Largest Single-Location Transformer Facility
CG Power describes the Sehore facility as India’s largest single-location power transformer manufacturing facility.
The plant has been designed to manufacture transformers covering 220 kV to 1200 kV classes, allowing CG Power to participate in large-scale transmission and power-infrastructure projects.
The company also expects the facility to strengthen its ability to address international demand and expand its export business.
This provides CG Power with an opportunity to use the additional capacity not only for the domestic market but also for global transformer requirements.
Fast Execution of the Greenfield Project
The project also highlights CG Power’s execution capability.
Construction began in October 2025, following acquisition of the land lease in June 2025.
The first transformer was rolled out on September 4, 2026, meaning the initial production milestone was achieved approximately 13–14 months after construction began.
The company credited the Madhya Pradesh Government and its internal execution framework, CG EDGE, for supporting the rapid development of the facility.
Capacity Expansion Backed by Strong Existing Utilisation
One of the more important aspects for investors is the company’s stated 100% utilisation of its existing transformer manufacturing capacity.
This suggests that the new capacity is being added against a backdrop of strong demand for the company’s existing transformer operations.
The additional 45,000 MVA capacity could therefore provide CG Power with greater ability to address new orders and reduce capacity constraints.
However, the financial impact will depend on the pace at which the new capacity is commissioned, customer orders, product mix, pricing and operating margins.
Supporting India’s Power Infrastructure
CG Power’s management sees the new facility as part of its broader contribution to India’s power infrastructure development.
Vellayan Subbiah, Chairman of CG Power and Industrial Solutions, said the company’s new facility has been built at scale to manufacture some of the world’s largest power transformers and is intended to supplement demand for power-infrastructure equipment while also supporting exports.
Amar Kaul, Group CEO and Managing Director, highlighted that the company was able to bring the facility into operation within approximately 13–14 months, following the commencement of construction.
Strategic Importance for CG Power
The Sehore expansion strengthens CG Power’s position in the power systems business and provides several potential long-term benefits.
Higher Manufacturing Capacity
The 45,000 MVA addition represents a significant expansion over the company’s existing transformer capacity.
Exposure to Structural Power Demand
India’s growing electricity demand, renewable-energy deployment and transmission investment are creating a long-term requirement for transformers and other electrical equipment.
Data Centre Opportunity
The rapid development of data centres is creating additional demand for reliable high-voltage power infrastructure.
Export Potential
The new facility is also intended to support CG Power’s growing export business.
Higher Capacity Availability
With existing transformer capacity reported at 100% utilisation, the new plant provides additional room for volume growth.
What Investors Should Watch
The first transformer rollout is an important milestone, but the next stage will be more important from a financial perspective.
Investors should monitor:
- Pace of commissioning of the remaining Sehore capacity
- New transformer orders and order-book growth
- Capacity utilisation at the new facility
- Domestic versus export demand
- Transformer realisations and margins
- Contribution of the new facility to revenue and profitability
- Capital expenditure and project execution
- Demand from renewable energy and data-centre projects
The key transition for CG Power will be from capacity creation to capacity monetisation.
CG Power’s Broader Business
CG Power operates across Industrial Systems and Power Systems.
Its product portfolio includes transformers, switchgears, motors, drives and railway-related electrical equipment.
The company has also expanded into the semiconductor industry and is establishing an Outsourced Semiconductor Assembly and Testing (OSAT) facility.
It has additionally acquired the RF components business from Renesas and established Axiro Semiconductor, a fabless semiconductor design company.
CG Power reported consolidated revenue of approximately ₹12,418 crore in FY26.
The company operates 22 manufacturing facilities across India and one in Sweden, supported by its regional and branch-office network.
Investor Takeaway
CG Power’s first transformer rollout from the Sehore facility is a major capacity-expansion milestone.
The project involves ₹792 crore of investment and will ultimately add 45,000 MVA of transformer manufacturing capacity.
With existing transformer capacity reported at 100% utilisation, the additional capacity could provide CG Power with significant room to participate in the growing demand for transmission infrastructure, renewable-energy projects, data centres and export markets.
The full benefit, however, will depend on the speed of phased commissioning and the company’s ability to secure orders and achieve attractive utilisation and margins.
Bottom Line
CG Power has moved its ₹792 crore Sehore transformer expansion from construction into production with the rollout of its first transformer.
The project is strategically important because it is expected to increase the company’s total transformer manufacturing capacity from 75,000 MVA to 120,000 MVA once the entire 45,000 MVA addition is commissioned.
The combination of 100% existing capacity utilisation, rising electricity demand, renewable-energy expansion, data-centre growth and export opportunities provides a favourable backdrop for the new capacity.
For investors, the next major trigger will be whether CG Power can rapidly ramp up the remaining Sehore capacity and convert it into higher order inflows, revenue and profitability.
Disclaimer: This article is based on information disclosed by CG Power and Industrial Solutions Limited and is intended for informational and educational purposes only. Capacity additions and industry demand do not guarantee future orders, revenue, profitability or share-price performance. Investors should independently evaluate the company’s financials, valuation, risks and future prospects before making investment decisions.