CG Power and Industrial Solutions Plans to Double Switchgear Capacity

CG Power and Industrial Solutions has approved a ₹748 crore greenfield expansion to double switchgear capacity across product lines, with the first phase scheduled to begin in April 2027. The plan matters because switchgear expansion adds to the company’s ongoing investments in transformers, extra high-voltage equipment and semiconductor assembly operations.

What is CG Power and Industrial Solutions planning for switchgear capacity?

CG Power and Industrial Solutions plans to build a greenfield switchgear expansion that will double capacity across all product lines. The company approved the ₹748 crore project in December 2025, and the first phase is expected to start in April 2027.

The available information does not specify the location of this greenfield project, the exact capacity addition by product category, or its commissioning timeline. But the stated objective is clear: CG Power is preparing a larger switchgear manufacturing base across its portfolio.

Switchgear is used to control, protect and isolate electrical equipment in power networks and industrial installations. Capacity additions in this business are therefore relevant to utilities, industrial customers and infrastructure projects that require electrical distribution equipment.

CG Power has also expanded switchgear operations at existing facilities. Its board had earlier approved ₹155 crore for switchgear capacity expansion at the Nashik plant. More recently, the company announced commissioning of an extra high-voltage switchgear manufacturing facility, S3 Unit-II, in Nashik, Maharashtra, with an investment of ₹39.49 crore.

How does the switchgear project fit CG Power's wider manufacturing programme?

The switchgear expansion sits alongside CG Power’s investments in transformer manufacturing. On 4 September 2026, the company rolled out the first power transformer from its greenfield Sehore plant in Madhya Pradesh.

The Sehore facility had installed manufacturing capacity of 10,000 MVA at the time of the rollout. It was designed to reach 45,000 MVA, which would take the company’s total transformer capacity to 120,000 MVA, according to the reported project details.

Separately, CG Power’s board approved setting up a transformer manufacturing unit with 45,000 MVA capacity in western India at an estimated cost of ₹712 crore. The supplied information does not establish whether this proposal is connected to the Sehore facility, so the projects should be viewed as separately reported manufacturing plans.

These investments reflect the company’s presence in power transmission, distribution, power solutions and integrated power systems. CG Power operates through Power Systems and Industrial Systems, providing electrical-energy management and application solutions to utilities, industries and consumers.

What is CG Power doing in semiconductor assembly?

CG Power is also building a semiconductor assembly and testing presence through its CG Semi arm. The company has launched an outsourced semiconductor assembly and test, or OSAT, unit in Gujarat and has partnered with Renesas and Stars Microelectronics.

Earlier reporting said CG Power would form a joint venture with Renesas Electronics America and Thailand’s Stars Microelectronics for an OSAT facility in India. The reported project value was $222 million. Other supplied reports said the company planned to invest ₹7,600 crore in India over five years for the semiconductor initiative.

India’s Cabinet had approved three semiconductor plants, including CG Power’s proposed project, as part of a wider set of investments worth ₹1.26 trillion. The reported information said construction of the approved plants would begin within 100 days of that approval.

The semiconductor business is distinct from CG Power’s established electrical equipment operations. However, it adds another manufacturing programme to a company already allocating capital to transformers and switchgear. The information provided does not state revenue, profitability or production-volume figures for the OSAT operation.

What are the relevant financial and market details for investors?

CG Power’s reported share price was ₹841.45 at 4:00 pm IST on 4 November 2026, with trading status shown as active. This price is a market reference point and does not by itself measure the financial contribution of the announced expansion projects.

For the December 2024 quarter, CG Power reported consolidated net profit of ₹237.85 crore, down more than 68% year on year. The stated reason for the decline was adjusted earnings from discontinued operations, which means the reported movement should be read in that context rather than attributed to current manufacturing expansion alone.

The company had also reported a 37% increase in second-quarter net profit to ₹244 crore in a separate update. The supplied material does not provide the corresponding period, revenue figures, margins or a full comparable financial series. As a result, the available numbers show individual reported updates rather than a complete earnings trend.

For investors, the key disclosed facts are the scale and timing of capital commitments. The ₹748 crore switchgear project has a first phase beginning in April 2027, while transformer and semiconductor programmes involve additional reported investments. The material does not provide financing details, expected returns, order-book conversion or project-level earnings guidance.

Why do these manufacturing additions matter for the power-equipment business?

CG Power’s capacity plans are relevant because transformers and switchgear are core components of electrical transmission and distribution systems. Higher manufacturing capacity can expand the company’s ability to supply utilities, industrial customers and power-system projects, subject to execution and demand conditions.

The company’s rollout of a transformer from Sehore in September 2026 shows that at least one recent greenfield facility has moved into operations. Meanwhile, the switchgear project remains at a planned stage, with its first phase scheduled to start in April 2027.

The Nashik EHV switchgear commissioning adds to the operational footprint already disclosed by the company. Together with the larger greenfield plan, it indicates that CG Power is pursuing both expansion at existing locations and new capacity development.

The semiconductor initiative broadens this manufacturing strategy beyond electrical equipment. Its significance will depend on operational progress at the Gujarat OSAT unit and the execution of the partnerships with Renesas and Stars Microelectronics, as the supplied information does not provide subsequent production or financial performance data.

Conclusion

CG Power and Industrial Solutions is pursuing a multi-part manufacturing expansion programme spanning switchgear, transformers and semiconductor assembly. The ₹748 crore switchgear project is the central disclosed plan, aiming to double capacity across product lines, while Sehore has already produced its first transformer and the company has launched an OSAT unit in Gujarat.

The next disclosed milestone is the first phase of the greenfield switchgear expansion in April 2027. Investors can also watch for updates on project execution, capacity commissioning, semiconductor operations, financing and any order or financial disclosures linked to the new manufacturing assets.