CG Power identifies key focus areas to develop advanced products

CG Power and Industrial Solutions Ltd. (CG), a subsidiary of Tube Investments of India Ltd., has identified several key focus sectors to offer ‘world-class and technologically-advanced products’.

The company has been identifying areas of synergy with Tube Investments and the rest of the Murugappa Group to take ‘the pillars of growth much higher in the next three to five years’, said chairman Vellayan Subbiah in the 85th annual report.

The company has identified electric vehicles (EVs), fast moving electrical goods (FMEGs), railways, steel, agriculture, pharma, defence, cement and renewable energy as growth drivers.

According to Mr. Subbiah, CG sees ‘huge’ growth potential from the government’s plans and initiatives in these sectors.

Some of these initiatives include its plan to achieve net zero emissions, power for all, larger dependence on cleaner energy, better water and waste management, modernisation of railways with technologically advanced locos, housing for all, indigenous development of pharma and defence products, among others.

“In a bid to tap these opportunities strategically, CG aims to build sector-focussed approach and teams, and has begun its work in this direction,” he said.

Further, CG has planned investments in R&D, capacity expansion, upgradation of current plants, and hiring of technology experts to empower its talent pool to be a ‘Future Now’ company in the space of goods and services for Industrial and Power Systems.

Talking about the successful turnaround of the company, he said: “CG is bouncing back – stronger, bigger and hungrier..”

Speaking about the outlook, N. Srinivasan, MD said all businesses have multiple opportunities for growth. The industrial business is expected to have sustained organic growth, while the EV segment is another big opportunity to cater to for the next several years, he pointed out.

The medium to long-term opportunities and the outlook remains strong, he said.

However, in the current year, it needs to face the consequences of the Russia-Ukraine war, he added. The continued disruption in the supply chain, high inflation leading to high input costs and margin pressure are challenges to reckon with, Mr. Srinivasan said.