How Does CG Power and Industrial Solutions Company Work?

Operational differentiators and value levers that underpin CG Power operations and competitive positioning.

• Scale in transformers and motors with type-tested designs that meet Indian utility reliability benchmarks.
• Lean-cell motor manufacturing and standardized platforms enable faster lead times and improved delivery cycles.
• Aftermarket & MRO (rewinds, retrofits, spares, AMCs) provides recurring revenue and higher customer retention.
• Murugappa Group procurement discipline and working-capital rigor plus a strengthened vendor base mitigate commodity volatility and margin pressure.

FY2024 saw a material mix toward higher-voltage transformers, premium-efficiency motors and expanded services, supporting reported margin improvement.

• Power Systems (transformers + switchgear): estimated 55–60% of FY2024 revenue.
• Industrial Systems (motors, drives, automation): roughly 40–45% of FY2024 revenue.
• Services & aftermarket: mid-single-digit % of revenue but outsized contribution to segment EBIT.
• Exports: estimated 20–25% of revenue with growth in MEA and SE Asia.

Value-based pricing and platform standardization raise realizations and lower costs.

• Premium pricing on IE3/IE4 motors; customers pay for lifecycle savings and compliance.
• Higher margins for EHV transformers designed to meet stringent loss metrics.
• Bundled offerings (motor + drive + panel + service) to increase wallet share and lock-in.
• Frame/platform standardization to improve product mix and reduce SKU-related costs.

Shift to higher-value products and services supported margin and capital returns.

• EBITDA margins expanded into the low-to-mid teens by FY2024.
• ROCE moved above 30% aided by mix shift and service growth.
• Selective EPC approach prioritizes margin and working-capital discipline over volume.
• Cross-selling via service contracts increases lifetime customer profitability.

Competitive position rests on integrated domestic manufacturing, wide distribution, deep utility references, and continuous cost and platform improvements that protect margins versus multinationals and regional peers.

• Broad portfolio across generation-to-load: transformers, breakers, switchgear, motors, and protection/automation systems that enable cross-selling.
• Type-tested, integrated manufacturing plants in India reduced lead times and supported stronger cash conversion post-turnaround.
• Strategic diversification via the Sanand ATMP project ties into power-electronics and opens higher-margin electronics manufacturing revenue streams.
• Order-book growth in FY2024 and targeted export expansion to MEA/SEA reduce single-market cyclicality and improve utilization.

Strategy aims for sustained double‑digit revenue growth, high‑teen ROCE potential and expanding recurring service revenues; the semiconductor ATMP project could add a higher value‑add revenue stream once commercial.

• FY2025–FY2027 revenue growth expected to broadly mirror India’s grid, renewable and data‑centre capex cycles, supporting order book replenishment.
• EBITDA margins forecast to be supported by a shift to EHV transformers, IE4 motors, drives/automation and service annuities—management targets steady margin improvement versus FY2024 levels.
• Exports and product mix aim to reduce domestic cyclicality; forex hedging and input sourcing strategies are critical to mitigate currency and commodity risks.
• Selective EPC approach to limit working‑capital stress and execution exposure while focusing on higher‑margin, lifecycle service contracts.