Synopsis: CG Power and Industrial Solutions commissioned its new Extra High-Voltage switchgear manufacturing facility S3 Unit-II in Nashik on June 4, 2026, expanding EHV circuit breaker production capacity by 80% to meet surging domestic and export demand.
In a regulatory disclosure filed with the BSE and NSE on June 4, 2026, CG Power and Industrial Solutions Limited announced the commissioning of its new Extra High-Voltage (EHV) switchgear manufacturing facility, designated S3 Unit-II, located at Pimpalgaon Garudeshwar in Nashik, Maharashtra. The facility commenced commercial production on the same day and represents a significant capacity expansion milestone for the company’s Power Systems business.
Shares of CG Power and Industrial Solutions Limited, with a market capitalization of Rs. 1,47,502.62 crore, are trading at Rs. 935.50, down 0.26% from their previous closing price of Rs. 937.90. The stock touched an intraday high of Rs. 952.00 and a low of Rs. 935.20, marking a fresh 52-week high during the session. The company is currently trading at a P/E ratio of 123.43.
The new plant will manufacture EHV circuit breakers in the 33 kV to 245 kV voltage range and is equipped with advanced 500 kV and 350 kV high-voltage testing laboratories infrastructure that is rare among Indian switchgear manufacturers and critical for qualifying products for premium domestic utility and export markets. The facility is in addition to the existing S3 Unit-I at Ambad, Nashik, which manufactures EHV circuit breakers in the 33 kV to 800 kV range with an annual capacity of 9,000 units operating at approximately 85% utilisation.
S3 Unit-II adds 7,200 units of annual capacity, expanding CG Power’s total EHV circuit breaker production capacity by 80%. The investment for this specific facility stands at Rs. 39.49 crore, financed entirely through internal accruals. Notably, the company expects 97% of this capex to be applied toward a broader greenfield switchgear project announced in October 2025, with a total estimated cost of Rs. 748.20 crore covering medium voltage (MV), EHV switchgear, substation automation systems, and power electronics across approximately 35 acres of land.
Group CEO and Managing Director Amar Kaul described the commissioning as reflecting the company’s confidence in opportunities from grid expansion, renewable energy integration, and infrastructure development, stating that the facility enhances the ability to deliver world-class products at scale.
Additional Analysis & Market Impact
The timing of this capacity expansion is strategically significant. India’s transmission infrastructure is undergoing a multi-year investment cycle driven by renewable energy integration, Green Energy Corridor projects, data centres, rail electrification, and rising industrial power demand. As one of the leading players in India’s 765 kV transformer and EHV switchgear segments, CG Power is well-positioned to benefit from this structural growth trend.
The commissioning of S3 Unit-II comes at a time when the company’s existing Nashik facility was already operating at approximately 85% utilisation, highlighting strong demand visibility and a robust order pipeline. The addition of 7,200 units of annual capacity strengthens CG Power’s ability to address domestic utility, transmission, renewable energy, and export opportunities.
Beyond power equipment, CG Power’s long-term investment case is increasingly tied to its semiconductor ambitions. The company’s Rs. 7,600 crore OSAT semiconductor joint venture with Renesas Electronics and Thailand’s Stars Microelectronics marks its entry into India’s fast-growing chip manufacturing ecosystem, creating a unique dual-engine growth story spanning both power infrastructure and deep-tech manufacturing.
The expansion also reflects the remarkable transformation under the Murugappa Group since its acquisition in 2020. Notably, the Rs. 39.49 crore investment for the new facility was funded entirely through internal accruals, highlighting the company’s strong cash generation and debt-free balance sheet a sharp contrast to its financial position prior to the takeover.
With FY26 revenue of Rs. 12,418 crore, record order inflows, and growing exposure to both power infrastructure and semiconductors, CG Power continues to strengthen its competitive position against larger global peers such as Siemens and ABB while benefiting from India’s accelerating industrial and energy transition.
Company Overview
CG Power and Industrial Solutions Limited is an engineering conglomerate headquartered in Mumbai and a leader in India’s electrical engineering industry. Operating under the Murugappa Group since 2020, the company’s two business lines Industrial Systems and Power Systems manufacture traction motors, transformers, switchgears, induction motors, and consumer appliances. With 18 manufacturing units in India and one in Sweden, CG Power reported FY26 consolidated revenues of Rs. 12,418 crore.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
