CG Power & Industrial Solutions , a leading engineering conglomerate, has announced a significant move to strengthen its presence in the US railway sector. The company's wholly owned step-down subsidiary, CG DE SUB, LLC (CG USA), has entered into a strategic partnership with Flanders Electric Motors Service, LLC, aiming to capitalize on the vast opportunities in the US railway market.

Partnership Highlights

• CG USA and Flanders Electric have joined forces to offer superior products and services to the US Railway Sector.
• The collaboration aims to provide competitive pricing and faster turnaround times for railway traction motor replacements and refurbishments.
• This partnership leverages CG's global expertise and Flanders' local capabilities in the US market.

Market Opportunity

The US railway market presents a substantial growth opportunity for CG Power:

• The US rail network spans approximately 140,000 miles, which is three times larger than Indian Railways.
• There is an increasing demand for high-quality, reliable solutions, particularly from Class I railroads.

Synergies and Expertise

The partnership brings together complementary strengths:

• Flanders Electric contributes rapid throughput times, quality assurance, and maximum reliability through their US footprint.
• CG Power brings over eight decades of global expertise in railway solutions.

Strategic Implications

Mr. Amar Kaul, Global CEO and Managing Director of CG, stated, "We are excited to strengthen our presence in the USA market and serve our customers with unmatched quality and speed. Our association with FLANDERS complements our world-class manufacturing capabilities, allowing us to provide timely and cost-effective solutions to US rail operators."

Kim Weninger, CEO of FLANDERS, added, "We are proud to join forces with CG to bring our motor expertise into the rail sector, one of the most critical components of the U.S. economy. This association is a natural extension of our legacy in heavy industry and our growing Flanders Motors Business."

Company Performance

CG Power and Industrial Solutions Limited reported strong financial results:

• Consolidated revenue stood at Rs. 9,909.00 crores (USD 1,146.00 million).
• The company operates 18 manufacturing units across India and one in Sweden.
• CG Power employs around 3,113 people and maintains a pan-India network of 5 regional and 14 branch offices.

Future Outlook

Both companies plan to scale capabilities and expand into US rail markets, united by a shared commitment to technical excellence, reliability, and continuous improvement. This partnership signals the next phase of CG's growth in North America and FLANDERS' growth in the traction motor business, positioning both companies to lead the future of rail transportation.

Investor Relations

CG Power has also announced a series of upcoming meetings with analysts and institutional investors. These meetings, organized by prominent financial institutions such as J.P. Morgan, Axis Capital, and Morgan Stanley, underscore the company's commitment to maintaining strong relationships with the investment community.

This strategic move by CG Power and Industrial Solutions Limited not only expands its footprint in the lucrative US railway sector but also demonstrates the company's commitment to innovation and global growth in the electrical engineering industry.

CG Power & Industrial Solutions has taken a significant step towards expanding its transformer manufacturing capabilities in Western India. The company has successfully secured a land allocation for its new greenfield transformer manufacturing facility in Sehore, Madhya Pradesh.

Land Allocation Details

The M.P Industrial Development Corporation Limited (MPIDC) has granted CG Power a 99-year lease for approximately 45.13 acres of undeveloped land. The allocated land is located in Village-Jahangirpura, Tehsil-Sehore, District Sehore, Madhya Pradesh.

Facility Specifications

The new transformer manufacturing facility is planned to have a capacity of 45,000 MVA (Mega Volt Ampere). This development marks CG Power's strategic expansion into transformer manufacturing in the western region of India.

Background and Timeline

The decision to establish this new transformer plant was initially made by CG Power's board. Following this decision, the company applied for land allocation to the MPIDC for the proposed greenfield project.

Official Communication

In an official intimation to the stock exchanges, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, CG Power's Company Secretary and Compliance Officer, Sanjay Kumar Chowdhary, confirmed the receipt of the land allotment letter from MPIDC.

Strategic Importance

This land acquisition is a crucial milestone for CG Power, as it paves the way for the company to strengthen its position in the transformer manufacturing sector. The new facility is expected to enhance CG Power's production capabilities and potentially contribute to meeting the growing demand for transformers in Western India and beyond.

The establishment of this greenfield project demonstrates CG Power's commitment to expanding its manufacturing footprint and could potentially create new employment opportunities in the region.

As the project progresses, investors and industry observers will likely keep a close watch on CG Power's execution of this significant expansion plan and its impact on the company's future growth trajectory in the power equipment sector.