ECONOMIC OVERVIEW
GLOBAL ‘SOCIO-ECONOMIC LANDSCAPE
In the year gone by, the world grappled with a whirlwind of challenges stemming from the prolonged effects of the pandemic, ongoing geopolitical tensions such as the Russia-Ukraine War and the Gaza-Israel conflict, volatility in the Middle East, incidents in the Red Sea, and climate change-related events including El Ni?o. Despite these hurdles, the global economic recovery proved to be more resilient than anticipated over the past year. Economic growth estimates for FY24 appear stronger in major developed, developing, and emerging economies, except for the Eurozone. While inflationary pressures have eased and there have been favourable developments on the supply side, labour market tightness has somewhat relaxed. Nonetheless, elevated interest rates and borrowing costs have emerged as significant concerns, resulting in subdued investment trends across many regions.
Despite facing global headwinds, India demonstrated remarkable resilience, driven by robust domestic demand, resilient private consumption, significant growth in manufacturing and service sectors, and substantial public and private investment. Indias emergence as an alternative manufacturing hub within the context of supply chain diversification strategies of developed economies further bolstered its position.
Global economic growth
The International Monetary Funds latest (January 2024) World Economic Outlook (‘WEO) has projected Global Growth to remain at same level of 3.1% in 2024 as was estimated in 2023 before rising modestly to 3.2% in 2025. Advanced Economies are expected to see growth decline slightly in 2024 before rising in 2025, with a recovery in the Euro area from low growth in 2023 and a moderation of growth in the United States. Emerging Market and Developing Economies are expected to experience stable growth through 2024 and 2025, with regional differences.
SOCIO-ECONOMIC LANDSCAPE OF INDIA
Despite significant black swan events impacting the global economic landscape, the Indian economy exhibited resilience in the past year, buoyed by robust macroeconomic fundamentals.
The major drivers of growth in the Indian economy included robust domestic demand for consumption and investment, bolstered by the Governments ongoing focus on capital expenditure, as well as advancements in the Industry and Service sectors. Although agricultural growth was affected, the Manufacturing Sector witnessed an expansion indicating sustained high profitability of corporations. Construction activity remained robust, and Services maintained pre-pandemic growth rates.
The stability in the macroeconomic environment, coupled with enhancements in Indias external position—particularly notable moderation in the current account deficit and a resurgence in capital flows supported by comfortable foreign exchange reserves—contributed to the stability of the Indian rupee during FY 2023-24. Additionally, inflationary pressures in India saw significant moderation, primarily propelled by proactive supply-side initiatives undertaken by the Government.
The high visibility of structural demand and healthier corporate and bank balance sheets are likely to be propel the growth going forward.
India - GDP growth
As a global bright spot and one of the fastest-growing economies today, India is recognized as a powerhouse of growth and innovation. Its real GDP is projected to expand by 7.3% in FY 2023-24. With a strong emphasis on infrastructure development, increased capital outlay, implementation of structural reforms, and a resilient financial sector, India currently ranks as the fifth-largest economy with a GDP of USD 3.7 trillion. It is poised to ascend to the position of the third-largest economy, reaching a GDP of USD 5 trillion within three years, and is expected to further scale up to USD 7 trillion by 2030.
INDUSTRY OVERVIEW - INDUSTRIAL SYSTEMS
India - Reimagining Manufacturing
In recent years, Indias manufacturing sector has undergone significant transformation, fuelled by the Make in India localization drive. This momentum has been supported by targeted initiatives and reforms such as the Production Linked Incentive (PLI) and Semiconductor schemes, the Bharatmala Pariyojana Project, the proposed DESH Bill, and the National Logistics Policy. These efforts have not only strengthened the industrial market but also expanded opportunities within it.
The Manufacturing industry is a pivotal force driving overall economic growth, and it is regarded as one of the essential foundations for India to become a USD 5 trillion economy by 2027, and further be reckoned as ‘Viksit Bharat by 2047. Currently, the sector contributes around 17% to Indias GDP and it is poised to grow to around 21% in the next 6-7 years underpinned by the evolving and expanding landscape.
Indias primary strength lies in its resilient internal dynamics. It stands as the seventh-largest country by area and the second-most populous, distinguished further as the worlds most populous democracy. The nations exceptional diversity has enabled it to adeptly navigate global dynamics. With its policies, reforms, and sustained macro-economic stability, India has become one of the most appealing investment hubs. Its abundance of industrial zones, available workforce, competitive labor costs, and emphasis on innovation contribute significantly to its advantage on the global stage.
Given this context, external factors like disruptions in Global Supply Chains prompting global players to seek alternatives to China through strategies like the China + 1 approach, along with challenges impacting Europe, are also playing a role in Indias success narrative. These circumstances are not only contributing to Indias growth but are also facilitating the expansion of its manufacturing sector as well as varied other sectors. Hence, the current timing appears opportune for the country.
The Interim Union Budget 2025 has set the capital expenditure outlay for the Infrastructure sector at Rs. 11,11,111 crores for 2024-2025, marking an increase of 11.1% compared to 2024, and the allocation represents 3.4% of the GDP. The prioritization of infrastructure development via capital expenditure is also anticipated to attract private investment and enhance both job creation and demand.
Driven by the Infrastructure and Manufacturing sectors, the Capital Goods Sector witnessed a growth of around 6.2% on an average basis, in the 11-month period (Apr23- Feb24) for which updates were available at the time of finalising this report.
Monthly Growth Rates (%) (Over Corresponding Period of the Previous Year) of Industrial Production as per use-based classification from April 2023 to Feb 2024
Category |
Apr-23 | May-23 | Jun-23 | Jul-23 | Aug-23 | Sep-23 | Oct-23 | Nov-23 | Dec-23 | Jan-24 | Feb-24 |
| Primary Goods | 1.9 | 3.6 | 5.3 | 7.7 | 12.4 | 8.0 | 11.4 | 8.4 | 4.8 | 2.9 | 5.9 |
| Capital Goods | 4.4 | 8.1 | 2.9 | 5.1 | 13.1 | 8.4 | 21.7 | -1.1 | 3.6 | 3.4 | 1.2 |
| Intermediate Goods | 1.7 | 3.4 | 5.2 | 3.2 | 7.4 | 6.1 | 9.5 | 3.4 | 3.9 | 5.3 | 9.5 |
| Infrastructure / Construction Goods | 13.4 | 13.0 | 13.3 | 12.6 | 15.7 | 10.1 | 12.6 | 1.5 | 5.1 | 5.5 | 8.5 |
| Consumer Durables | -2.3 | 1.5 | -6.8 | -3.6 | 6.0 | 1.0 | 15.9 | -4.8 | 5.3 | 11.9 | 12.3 |
| Consumer Non-Durables | 11.4 | 8.9 | 0.5 | 8.3 | 9.9 | 2.7 | 9.3 | -3.4 | 2.4 | -0.2 | -3.8 |
Source: Ministry of Statistics and Programme Implementation
The Company stands to benefit from numerous sectoral opportunities. In the Infrastructure sector, significant investments are planned under the National Infrastructure Pipeline (NIP), with outlays in Energy, Roads, Railways, and Urban Development. Additionally, increased allocations in the Interim Union Budget for 2024-2025 indicate a positive trend. In Agriculture, advancements supported by government schemes and investments in infrastructure present opportunities. The growth of the Cement industry, driven by economic growth and infrastructure thrust, requires various motors for production, creating opportunities. The Sugar sectors modernization and increased ethanol demand offer growth prospects. The expanding Data Centre sector, driven by digital economy growth, presents opportunities for motors. Besides, in Oil and Gas, Indias energy demand projections drive investments and present opportunities for the Companys Motors business.
MOTORS
Between April - December 2023 (9-month period), FHP, LT and HT motors recorded a growth of -23%, 9.3% and -3.6% respectively, as per the latest IEEMA report of in March 2024. In our own assessment, lower demand will lead to de-growth of the FHP motor segment. However, LT motors will continue to grow on the back of growth in ethanol, bio-gas and infrastructure projects. The growth to be witnessed in HT motor segment, will duly be aided by aggressive government investment in water projects such as Jal Jeevan Mission and National River Linking Project.
RAILWAYS
With a focus on infrastructure development, the Indian Government has consistently prioritized the growth of the Railways sector, drawing considerable investments. Consequently, India has one of the largest and most rapidly advancing rail networks globally. Indian Railways National Rail Plan (NRP) for India 2030 aims to create a ‘Future Ready Railway system by 2030.
In the past year, Indian Railways has made steady strides in its modernization and transformation efforts, experiencing notable momentum in capital expenditure allocation, track laying, electrification, station construction and redevelopment projects, introduction of new Vande Bharat Trains, implementation of Kavach initiatives, and other infrastructure endeavours.
The gross budgetary outlay for FY25 is Rs. 2.5 lakh crores as against
Rs. 2.4 lakh crores for the year FY24.
Some of the major development initiatives include the following:
Roll out of Vande Bharat Train Service
Launch of New Amrit Bharat Trains
Focus on Amrit Bharat Stations
Green Initiatives towards achieving net-zero carbon emissions by
2030
Focus on Gati Shakti Cargo Terminals
Launch of Bharat Gaurav Trains
Focus on the development of Dedicated Freight Corridors
Thrust on Metro and NaMo Bharat trains for urban transformation
The interim Union Budget indicated three major economic railway corridor programmes which will be implemented. These include energy, mineral and cement corridors; port connectivity corridors; and high traffic density corridors.
INDUSTRY OVERVIEW - POWER SYSTEMS
The Indian Power Sector has made significant strides with notable developments taking place including developments on the renewables front. Specific to renewables, at COP26, India had made a significant announcement regarding its ambition to achieve net-zero emissions by 2070, marking a crucial milestone in the global effort to combat climate change. Furthermore, towards this, India has set its new climate action targets–50% of its electricity to come from non-fossil fuel sources by 2030, thereby culminating into ample prospects for the Renewables sector. Several policies and incentives have also been announced towards promotion of Renewables including those for Hydro Power.
Transmission and Distribution
Over the years, remarkable progress has taken place on the transmission and distribution front as well, thereby narrowing the gap between the peak demand and supply position.
The total installed capacity of power as on February 29, 2024, was around 4,34,195MW and the overall growth in power generation has been to the tune of 6.80% in FY24 (upto February 2024) compared to FY23.
The transmission and distribution system has also augmented over the years through Intra State and Inter State Transmission System. Indias Transmission Network comprises about 4,81,326 ckm of transmission lines and 12,25,260 MVA of transformation capacity as on January 31, 2024. During FY24, 14,203 ckm of transmission lines were added and 70,728MVA of transformation capacity was added. Besides, its inter-regional capacity has increased to 1,16,540MW.
While numerous major reforms have been undertaken on the transmission front such as Electricity (Transmission Planning, Development and Recovery of ISTS Transmission Charges) Rules, 2021; separation of Central Transmission Utility (CTU) function from POWERGRID and Central Transmission Utility of India Ltd started function as CTU w.e.f. 1st April 2022; and initiatives on ease of doing business for private developers in transmission sector; the government has been laying enormous thrust on the distribution as well. On the distribution front, the Central Government has approved a Revamped Distribution Sector Scheme - a Reforms-based and Results-linked Scheme with an outlay of Rs. 3,03,758 crores over a period of five years from FY 2021-22 to FY 2025-26 with the objective to improve the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector. The Scheme aims to reduce the AT&C losses to pan-India levels of 12-15% and ACS-ARR gap to zero by 2024-25 by improving the operational efficiencies and financial sustainability of all DISCOMs / Power Departments excluding Private Sector DISCOMs.
Expected procurement of MV Switchgear for the next three years is worth Rs. 5000 crores for AIS, GIS, Indoor, Outdoor, and Automation.
Source: IEEMA
BUSINESS SEGMENTS REVIEW
At CG Power and Industrial Solutions Limited ("CG"), the business operations are spread across two business divisions:
Industrial Systems |
Power Systems |
| Motors (LT / HT / FHP) & Stamping, | Transformers, Switchgears, |
| Drives & Automation, Railway Products, | and Turnkey Solutions |
Fast Moving Electrical Goods (FMEG)
INDUSTRIAL SYSTEMS
One-stop-shop for Integrated Motion Automation Solutions
1) Industrial Motors
CG is one of Indias largest and oldest motor manufacturers, offering a diverse range of top-notch products, solutions, and services tailored to meet the needs of various customer segments. The Company provides a wide selection of LV Motors (up to 710 kW), MV Motors (up to 20 MW), Fractional Horsepower Single-phase Motors (up to 5.5 kW), and AC drives & Drive Panels in multiple variants and standards, along with customized configurations to suit the diverse requirements of industrial sectors. Over the years, the Companys motor business has witnessed resounding success. The Companys deep domain expertise, proven track record, and consistent focus on research and development have empowered it to enhance its offerings continuously. CG stands out as the first company to indigenously develop and supply a complete range of High efficiency Motors including IE2, IE3, IE4, and the recently introduced IE5 Ultra-Premium Synchronous Reluctance Motors, in India.
Additionally, the Company leads the way in domestically developed EV Motors and Controllers for various vehicles like 3-wheelers, LCVs, MCVs, HCVs, Trucks, and Buses. CGs Smart Motor Solution enables remote monitoring of motor operations and health, facilitating preventive maintenance.
In 2019, CG made a strategic re-entry into the Fast-Moving Electrical Goods (FMEG) segment with the introduction of Pumps and Industrial Exhausts. To elevate its business growth further, CG expanded its product portfolio by launching a new range of Ceiling, Table, Pedestal, and Wall Fans as well as an array of instant and storage Water Heaters. These products are meticulously designed by the CG team, following thorough research and a deep understanding of diverse needs and applications.
2) Drives & Automation
With an aspiration to become a one-stop-shop for the entire motor value chain, the Company had in 2011, acquired Emotron a Sweden based technology company and established CG Drives and Automation ("CG D&A"), leading to the Company offering a wide range of Drives and Automation products and solutions. With production units in Sweden and Germany, the Sweden headquarters serve as the hub for European business, focusing on four core markets: Nordic, Germany, Netherlands, and the MEA region. Distribution is managed through a network of distributors and partners across multiple markets beyond the home markets. The Company is committed to developing sustainable, energy-efficient solutions, with a focus on four segments: Marine, Water and Wastewater, Green Energy Power Solutions, and Material Handling. Backed by a global partner network endowed with innate technical service capabilities, the business has been steadily expanding its footprint, fortified by authorized service partners, distributors, and a workforce of 177 employees stationed in Europe.
Manufacturing and Testing Expertise
The Companys manufacturing facilities are modern and equipped with state-of-the-art technology to maximize efficiency, productivity, and quality. These facilities showcase industrial innovation through advanced machinery, automated systems, and eco-friendly practices. With a focus on sustainability, they minimize environmental impact while emphasizing excellence and responsible manufacturing. The Company operates world-class plants in nine locations in India and one in Sweden.
The Company operates motor manufacturing facilities at three locations in India:
LT Motors manufacturing units in Ahmednagar and Goa.
HT Motors unit in Bhopal.
– Further, during the year, CG embarked on the capacity expansion of this unit, with a capital outlay of Rs. 35 crores.
Stampings units in Ahmednagar and Goa.
Single-Phase Motor manufacturing unit in Goa.
CG Drives and Automation operates cutting-edge Engineering
Centers in Germany and the Netherlands, along with two world-class manufacturing facilities featuring in-house design and manufacturing capabilities. One facility is located in India, and the other is in Sweden, serving the global market. Both these facilities are CE as well as UL certified and supply directly to customers across the globe.
Initiatives Undertaken Towards Transitioning to Industry 4.0
The Company continues to enhance its manufacturing capabilities for Motors through strategic investments and initiatives. With Industry 4.0 reshaping the manufacturing landscape, the Company is intensifying its efforts to transition to Industry 4.0 across all its manufacturing units. To achieve this goal, the Company has initiated several steps, including finalizing key performance indicators (KPIs), identifying and prioritizing critical processes, selecting equipment for Internet of Things (IoT) integration, and defining the scope for implementing Machine Execution Systems (MES), among others. The MES will facilitate real-time communication with SAP, enabling instant access to data for processes such as material master, Bill of Materials (BOM), vendor and customer master records, and unexecuted order tracking.
The Company has also made investments in IT-enabled operational technologies (OT), facilitating the integration of critical equipment and processes, thus enabling performance monitoring from any location. Similarly, the Company has commenced implementing OT for its existing equipment, enhancing their intelligence through digitalization and sensorization.
Furthermore, CG continued to pursue initiatives aimed at increasing automation throughout its motor manufacturing units and implemented various modernization projects over the past year.
Business Performance
Overall, the business witnessed notable advancements and breakthroughs during the year.
It strengthened its foothold in the Cement Sector, followed by the
Oil and Gas and the Water and Irrigation sectors. Additionally, it expanded its client base in the Steel segment. In FY24, the Company intensified efforts to explore opportunities in the Power Sector, particularly in Nuclear Power, and in the Sugar Sector, with a focus on Ethanol production.
The Company successfully ventured into and executed projects for Wind Turbine and Earth Mover applications.
The influx of orders from the Industry and OEM segments continued to be encouraging.
A significant milestone was achieved with a breakthrough entry into NPCIL with a 6 MW motors order, establishing the Company as a preferred supplier for NPCIL.
Various other breakthrough order inflows comprised orders for
FHP motors including Rice Huller Motors, Commercial Cooler Motors - H frames, Compressor Motors, and Conveyor Motor, amongst others.
The business also signed a rate Contract with a large Corporate
House for supply of LT Motors for 5 Years covering a total of 73 businesses within the Group. Furthermore, a technical approval has been signed with an Indian Conglomerate for the supply of LT Motors.
Internationally, the Company entered the Brazilian market with a substantial order of 7000 FHP motors.
With respect to drives, the Company initiated in-house development of drives up to 45kW with next gen power devices.
Operations Highlights
While producing best-in-class, robust, value-driven and acclaimed products, the Company continues to lay strong emphasis on cost reduction and efficiency enhancement initiatives including LEAN manufacturing, design optimization, technology upgradation, quality improvement, and culture building, resulting in continuous improvement in its operational efficiency.
The following initiatives were undertaken during the year, in this regard:
A significant number of Kaizens were identified and implemented, and Lean projects were initiated for upstream operations.
Taping and strapping operations were automated.
DG sets with auto changeover were installed to ensure sustainable operations.
Implemented laser nameplate printing on motors which has led to creating permanent nameplate imprints and enabled cost savings compared to sticker-based name plating.
The Company has embarked on a Thermocol free packaging drive whereby it has begun replacing Thermocol with Honeycomb Packing, during the year. Further, it is working towards enabling Single Use Plastic (SUP) at its premises.
The Company maintained its focus on developing local sourcing for CF Gear to reduce import dependency, achieving a reduction of 70% in dependency.
Undertook various design optimization initiatives during the final design stage which have contributed to material cost reduction.
The alternate use of electrical grade steel has contributed to the improvement of product performance parameters.
The Company has installed latest design and Simulation Software for quick development of new products and is engaging in rapid prototyping with 3D printing.
LTM Die Cast Rotor (DCR) Process has been changed from Diesel
Furnace to Electrical Furnace. This change is a more sustainable practice which ensures a pollution-free operation. By adopting an electrical furnace, the process reduces emissions associated with burning diesel, contributing to a cleaner environment.
New Product Development
During the year gone by, the Company successfully expanded its range of energy-efficient motors to include IE5 Ultra-premium Efficiency Synchronous Reluctance Motors. These motors utilize Synchronous Reluctance topology without the use of rare earth materials, ensuring an environmentally friendly design. They have the capability to reduce energy losses by up to 50% and significantly lower energy consumption compared to IE2 induction motors. Suitable for various applications such as HVAC, pumps, fans, compressors, and extruders, these motors offer several benefits including faster payback for improved operational profitability, precise speed and torque control, high efficiency across the entire speed range, lower winding and bearing temperatures for enhanced product life, faster accelerations due to low inertia, and reduced noise for a better working environment. Additionally, they can be seamlessly upgraded to induction motors without requiring any mechanical modifications. In FY24, CGs Consumer business introduced its new range of Apex Series Pumps, including the CG XMB Centrifugal Mono Block Pumps up to 20 HP, thereby expanding its Consumer Products portfolio. Besides, the Company launched 15 new BLDC fans with remote control, and regulator in plain and decorative variants, as well as introduced 9 new star rated fans in the induction category. CG also rolled out 6 new varieties of instant and storage water heaters. Furthermore, Fire Fighting Pump, End Suction Pump, Inline Pump, PSV Pump, and Apex Series Pumps have been launched in the market, thereby enhancing the range of pumps. This includes Submersible Agro V4 & V6 Pump, Open Well Submersible, SS Sewage Pump, and Strong Flow Pump. The Company has successfully developed auxiliary motors for steering pump applications, as well as has rolled out motors for booster pump applications.
Business Performance Drives and Automation – Europe
During the year, the Company continued to expand its client base with notable orders from India and across the globe.
New Products Developed during the year
Developed the E2.1 FDU / VFX models, offering 75kW / 90kW and compact in size.
Introduced the compact high-power PEBB models, offering
160kW / 200kW.
Launched a slim liquid-cooled active front drive up to 1.6 MW.
Expanded TSA Soft Starter Range up to 1000kW.
Enhanced the industrial drive user interface and connectivity features with Bluetooth / Wi-Fi, catering to targeted segments including Power, Oil & Gas, Metal, Water & Wastewater, and Material Handling.
Certifications
The Company has obtained BIS certification for Star Rating of fans, enabling participation in government tenders such as those by EESL.
Motors and Drives:
Obtained the UK Conformity Assessed marking (UKCA) for the UK market.
Secured revalidation of Nema Premium certification for American market.
Also, secured the CSA approved certification for Testing for the
American Market.
As stated earlier, CGs Industrial Systems business extends beyond India to include Drives & Automation operations in Europe.
Product Offerings
Product |
Range |
Industry Application |
Low Tension Motors and IE2, IE3, and IE4 efficiency Motors |
0.18kW to 710kW |
Multiple variants and standards, customizable to configurations required for any industry / equipment, and EV Motors for e-mobility |
Fractional Horse Power (FHP) Motors / Single Phase Motors |
0.02kW to 5.5 kW |
Used for all general-purpose applications in Domestic, Commercial, Agricultural, Industrial, Healthcare and Construction segments |
Hazardous Area Application Motors (LV and HV) |
0.37kW to 12000kW |
Designed to suit the ignitable atmospheres present in hazardous Locations such as Zone1, Zone 2 or Class1 Div 1 and 2 |
Large Industrial Machines (HT Motors) |
Up to 12000KW |
Energy-efficient and intelligent motors for various applications in IP23, IP55, IP56 and IP65 enclosures |
Stamping and Laminations |
Consumer products to HVDC Generator & Alternators |
For Industrial Motors, Alternators, Generators, Consumer Goods Motors like fan pump etc., Railway Motors, Electric Vehicle Laminations |
Drives & Automation |
||
Product |
Range |
Industry Application |
Industrial AC Drives (LV &MV) |
0.75kW to 4000kW |
Used for all Industrial segments such as Cement, Water, Metals, Oil & Gas, Marine, Sugar, etc. |
| Active Front Drives (AFE) | 11kW to 4000kW | Used for Low harmonics and regenerative applications |
| Soft Starters | 5.5kW- 1000kW | Industrial applications such as Pumps and Fans |
| DC-DC convertor & AFG | Upto 3000kW | Renewable energy applications and on-shore Marine applications |
| Industrial Panels | Upto 4000kW | Customized Panel solutions for all type of Industrial users |
| Test Benches | Upto 4000kW | Routine type, back-to-back regenerative test setups |
Shaft power Monitor |
Upto 999Amp |
Patented technology to protect motors from dry runs, over / under load conditions |
Solar Drives |
0.75kW to 75kW |
Used for Renewable energy applications and Solar water pumping for Agriculture |
PLC & HMI |
Automation |
Automation the Industrial application like packaging, printing, special purpose machines, etc. |
Consumer Products
Product |
Range |
|
| Pumps, Fans and Water Heaters | Domestic, Agricultural, and Industrial Usage | |
Consumer Products - Pumps Portfolio |
||
Product |
Range |
Industry Application |
Domestic Pumps |
Mini series / Shallow-well jet / Openwell |
Normal water supply through Municipal Pipeline - filling storage / overhead tanks |
| Domestic Pumps | Submersibles | Getting ground water through borewells to overhead tanks |
| Agricultural Pumps | Monobloc / Openwell pumps | Getting water through rivers / ponds and borewells |
Agricultural Pumps |
Submersibles |
Ground water lifting for Agriculture use (farm irrigation) and Dripwater / Sprinklers applications |
| Industrial Pumps | V6 submersible / Monocloc | Building segment (Water supply) |
| Industrial Pumps | Fire-Fighting system | Fire-Fighting installations |
| Industrial Pumps | Pressure Boosters | Pressure pumps |
| Industrial Pumps | Monobloc / Openwell | Fountains |
| Industrial Pumps | Monobloc / Openwell | Cooling towers |
Industrial Pumps |
Sewage Pumps |
Sewages treatment in Households / Hospitals / Hotels / Treatment plants & Construction sites |
Promotion and Market Development Initiatives Undertaken During the Year
CG organized an Authorized Service Contractors meet which was attended by Service Contractors for both motors and consumer products.
CGs Pune Branch organized an exclusive Customer Meet for
Drives & Automation in Pune. The event was a tremendous success with a massive turnout of attendees, including representatives from renowned companies. The primary objective of this event was to showcase the latest product offerings from D&A and to create a platform for one-on-one interactions with industry experts.
CG had organized an exclusive Seminar on LT Motors, HT
Motors, Drives and Single Phase Motors for Industrial customers in New Delhi. Customers from all industry segments including Sugar, Cement, Power, Oil and Gas, HVAC and Water, attended the Seminar.
Exhibition Participations
The Division participated in the 5th International Exhibition cum Conference on Steel Industry at the Bombay Exhibition Centre (NESCO) Mumbai, where the Company showcased its range of Motors.
CG participated in the 14th Cement Expo 2023 at New Delhi, where it showcased its range of most technologically advanced products including IE4 Motors, Smartors, VFDs, Pumps as well as new service offerings and spares at the event.
CG participated in the 3rd International Conference and Exhibition on Sustainability - Challenges & Opportunity in Global Sugar Industry at the Vasantdada Sugar Institute in Pune. The Company showcased its extensive range of LT Motors and Drives for the Sugar Industry apt for boosting operational performance and efficiency.
CG Industrial Division participated in Automation Expo at the
Bombay Exhibition Centre (NESCO) Mumbai where the Company showcased its range of Super Premium Efficiency IE4 Motors, Super Premium Efficiency Flame Proof IE4 Motors, SMARTOR Motors, IE3 Motors, VFD Panels, Solar Drives, AC Drives: FDU / VFX Series, VSM Series, VSX Series, HMI & PLC, and Shaft Power Monitor & Automation Solutions.
The Division participated as a Platinum Sponsor at the 22nd Energy Efficiency Summit 2023, organised by CII. The main objective of the Summit was to facilitate the National Energy Conservation Movement by bringing all stakeholders together to deliberate on the best practices and offer exposure to the latest technologies. CG showcased its range of IE4 Motors, VFD Drives and a live demo of Smartor was also held at the event.
CG participated in the 3rd Dahej Industrial Expo held at GIDC, Gujarat. The Company showcased its range of technologically advanced products such as LT and FHP Motors, Drives, Fans, and Pumps, designed for optimum energy efficiency and performance along with its new service offerings and spares products. CG was bestowed with ‘Best Electrical Products Display Award at this expo.
CG participated in the India Energy Week Exhibition and
Conference at IPSHEM-ONGC, Goa, where it showcased its range of energy-efficient Motors and Drives and garnered good visibility.
CG participated in the 23rd edition of ACREX India at IEML, Greater Noida where it showcased its energy-efficient range of BLDC Motors, Smoke Extraction Motors, IE5 Ultra-premium Efficiency Synchronous Reluctance Motors and Drives & Automation products suitable for the HVAC industry.
The Company took part in the 31st edition of ChemTECH World Expo 2024, held at NESCO Mumbai where it showcased its range of Large Industrial Machines, Drives and LT Motors at this expo.
Channel Partners Conference
The Business hosted its All-India Dealers Conference 2023 in Zurich, Switzerland during October 2023, to felicitate its dealers. More than
Exports Growth Strategy
CG has maintained a global presence for many decades, consistently seizing opportunities and establishing itself in the global arena. However, in recent years, the Company has renewed its focus on exports, prioritizing efforts to expand its footprint and strengthen its position on the international stage. Towards this, CG has adopted a more calibrated and structured approach. As part of its strategic growth initiative, the Company is aiming to substantially expand its presence across different regions, segments, and sales channels through a concerted export drive. This involves expanding the Companys sales footprint, offering local solutions and service capabilities, and broadening the scope of its offerings across global sectors in Infrastructure, Industries, and Energy.
The Company is currently engaged in comprehensive business development and strategic positioning of all its portfolios, covering the entire international market. This effort includes significant focus on key regions such as the Americas, Europe, the Middle East, and Africa.
The Companys premium range of motors and alternators, including the NEMA premium range, as well as the IE3 and IE4 series, are already available in developed economies such as the Americas and Europe. Additionally, the Company leverages product branding and contract manufacturing routes to enhance its offerings in these markets.
The Company is already exporting drives and automation solutions such as AC VFDs of IP20 grade to its European subsidiaries besides direct exports to South Asia, Middle East and Russia. Various kinds of standard and application specific variable speed drives are available for all geographies.
110 Channel Partners along with their spouses participated in the conference, and more than 25 Regional and National awards were given to top performers.
Awards and Recognition
CG bestowed with ‘Best Electrical Products Display Award at the
3rd Dahej Industrial Expo 2023, GIDC, Gujarat.
CG has secured various orders in the South American markets thereby making notable progress in the region. Furthermore, it has advanced in the Middle East and Turkey through direct sales as well as distributor channels.
Railways
With a rich legacy in the Railways business, CG has the most extensive Railways products portfolio, comprising three primary product lines. These include:
Traction Machines & System (TMS)
This line encompasses AC & DC Traction Motors, Traction Alternators, and solutions tailored for self-propelled vehicles. CG Traction Machines & Systems (TMS) is widely recognized as a preferred partner in the Railways sector, serving as Original Equipment Manufacturers (OEMs) in India and numerous other countries. Leveraging advanced technical methods and efficient manufacturing processes, the Company delivers high-quality, reliable, and cost-effective locomotive traction motors and alternators to both domestic and international clients. The Company possesses the capability to rewind, and vacuum-pressure impregnate (VPI) both epoxy and silicone resins. Its AC motor test rig is capable of dynamically testing all AC and DC railway traction motor specifications. Utilizing rotor bar crack detection equipment and automated TIG welding and undercutting equipment, CG ensures top-notch quality processes. Additionally, all traction coils are manufactured and tested in-house at its dedicated coil facility, ensuring full control over quality and delivery.
CG supports customers in maintaining peak machine performance throughout the entire lifecycle. From the design stage through installation, commissioning, and in-field optimization, CG provides professional service, including advanced diagnostic tools for predictive maintenance and trend analysis. The Company offers flexible service concepts and highly qualified service personnel to maximize availability, from monitoring to intervention to troubleshooting.
CG has implemented certified Management Systems at its locations, adhering to standards such as IRIS, ISO 9001, ISO 14001, and OHSAS 18001, as effective methods to sustain continuous improvement of processes and products.
Rail Transportation Traction Electronics (RTTE)
CG offers IGBT based Propulsion Systems & Loco Panels to cater to traction electrification needs. CGs Rail Transportation Traction Electronics (RTTE) solutions leverage cutting-edge power conversion technology, ensuring high efficiency, reliability, and safety. These solutions are modular and scalable, aimed at reducing complexity, environmental impact, and total cost of ownership across the railway infrastructure. With expertise in design, engineering, and manufacturing, CG is capable of delivering Rail Propulsion Systems for various rail transportation applications including RRTS, Metrorail, Metrolite, Metro Neo, Monorail, and High-Speed Rail. The Company offers comprehensive support across all aspects of mechanical, electrical, and systems design, covering traction converters, auxiliary converters, high-voltage systems, main energy systems, and battery-powered systems. Leveraging its profound expertise and extensive testing specilization, CG ensures that the propulsion systems it designs meet the highest standards of quality and compliance with regulatory norms.
CGs software standards adhere to EN 50657 and EN 50128. Its Propulsion Systems encompass Traction Converter-Inverter, Traction-Inverter, Auxiliary Converter-Inverter (including auxiliary supply modules), and TCMS, all integrated seamlessly for optimal performance.
The energy-efficient Traction Converters for Electric Locomotives feature nominal input voltage and maximum phase current per line converter. Equipped with built-in safety features and microprocessor-controlled switching, they also come with MVB / Ethernet-based communication interfaces for enhanced efficiency and connectivity. These products are designed to be future-ready, with the flexibility for upgrades and remote diagnostics capabilities to meet evolving requirements.
Railway Signalling Products
This category includes Signalling Relays, Point Machines, and Data Loggers crucial for railway signaling systems. CG is a prominent provider of Railway Signalling Systems and Technology solutions in India, known for its extensive expertise and leading position in the industry.
Additionally, CG manufactures Coach Products such as Panels and Carriage fans. The Companys offerings also extend to trackside transformers, stamping for traction motors, auxiliary motors for locomotives, circuit breakers, surge arrestors, and instrument transformers, further enhancing its comprehensive solutions for the railway industry.
A one-stop solution provider for products of Electric Locomotives, CG is a strategic partner in technological upgrade and evolution for Indian Railways.
Railway Products Portfolio |
|
Traction Machines & System (TMS) |
|
Product |
Details |
| AC Traction Motors | Electric Loco, Diesel Loco, Trainset / Metro / EMU / MEMU and DEMU |
| DC Traction Motors | Electric Loco, Diesel Loco, DEMU, DETC SPIC / Other Self-propelled Vehicle |
| Traction Alternators | Diesel Electric Loco, DEMU, DETC SPIC / Other Self-propelled Vehicle |
| Complete Electrics | Including integrated power pack with traction alternator, Traction motors, Control equipment, Rectifier, |
Auxiliary alternator for Diesel Electrics Tower Car (DETC) with on board and underslung electrics, Self-Propelled Inspection car (SPIC) & Diesel Electric Multiple Units (DEMU) |
|
Rail Transportation Traction Electronics (RTTE) |
|
Product |
Details |
| IGBT Based Traction and Auxiliary Converters | For Electric Locomotive |
| IGBT Based Composite Converter / Hotel load converter | For 3 phase Electric Locomotive |
| Vehicle Control Unit (VCU) and Control Panels | For Locomotive |
| Propulsion System and Electrics | For EMU / MEMU / Trainset |
| Auxiliary converters | For Diesel / Electric Locomotives, Diesel Electric Multiple Unit (DEMUs) & Electric Multiple Unit (EMUs) |
| Train Control and Management System (TCMS) | |
| Propulsion system | 9000 HP for Electric Locomotive |
Railway Signalling Products |
|
Product |
Details |
| Q-Type Signalling Relays | |
| Electric Point Machines | Operating Voltage - 110 V DC & 380 V AC |
| -Non-trailable - 143 mm / 220 mm throw | |
| -Trailable – 175 mm / 220 mm throw | |
| -Non Trailable –Dual Gauge Point Machine (143mm / 220 mm throw | |
| DC Series Motor | For Electric Point Machines |
| DC Series Motors IP67 | 160 V & 400 V ACI for Electric Point machines |
| Back Drive | Secondary Drive with 220mm Throw Point Machine |
Rail Traction SCADA & Power Management System |
|
BLDC Industrial Fans |
|
Coach Applications Products |
|
Product |
Details |
| BLDC Carriage Fans | |
| Universal Carriage Fan | AC, DC |
Control Panels for Locomotives and Coaches
Product |
Details |
| Switch Board Panels | For Locomotives – SB1, SB2, HB1, HB2, Cubicle F |
| Filter Cubical Panels | For Locomotive |
| Panels, EDTS 355 | For LHB EOG Non-AC Coaches |
| Switch Board Cabinet | For LHB EOG / HOG AC COACHES- SBC 184, SBC 192, SBC 200 |
Manufacturing and Testing Expertise
The Company operates state-of-the-art manufacturing facilities dedicated to its Railways business, located in Mandideep and Pithampur, Madhya Pradesh, India. Additionally, CG maintains a dedicated in-house testing facility that adheres to Indian and International standards.
Initiatives Undertaken Towards Transitioning to Industry 4.0
Implemented IoT / digital recording for Quality Test Panels of
Relays, leading to faster execution, increased reliability, and effective monitoring.
Implemented IoT / digital recording of heat cycles at the annealing furnace, improving efficiency and enabling better process control.
Implemented mechanized crimping and soldering with digital recording, resulting in faster execution and increased reliability.
Initiated several LEAN measures.
Implemented the KANBAN System.
Export Initiatives
Bagged a significant export order from Mozambique.
Secured orders from US Railroads for the US market. This order win paves the way for CGs accreditation from the American Association of Railroads (AAR), opening up numerous opportunities for market expansion across North and South America.
Supplied Point Machine for field trial to Malaysian Railways to establish credentials in main line.
The Company secured approval of an approved supplier of
Point machine and Relays from Bangladesh Railways for Dual Gauge Turnout, and received orders from M/s KEC Limited & M/s Quatro.
Market-aimed Technological Initiatives that help Remain in line or Ahead of the Tech Curve
With a significant shift in Indian Railways procurement strategy, which now involves rolling out contracts for complete electrical propulsion packages rather than ordering individual products, the Company has adapted accordingly. Contracts for ‘Ready to Run locomotives, multiple units, and coaches are being awarded directly to eligible parties or consortiums. To meet these evolving requirements, the Company has introduced new products and solutions, aligning itself with changing technology needs. Its technology team is focused on developing products and solutions for projects like the Vande Bharat Express, upgrading 6000 HP Electric Locomotives to 9000 HP, and developing systems for Main Line Electric Multiple Units.
Moreover, the Company has initiated work on various green initiatives planned by Indian Railways, such as smart locomotives capable of predictive and preventive maintenance, and developing electric packages for hydrogen-based fuel cell trains with nearly net-zero carbon emissions.
Marketing and Business Development Initiatives
Participated in the 15th edition of the International Railway Equipment Exhibition (IREE) organized by the Confederation of Indian Industry (CII) in association with the Ministry of Railways, Government of India, at Pragati Maidan, New Delhi. Additionally, took part in the International Rail Conference (IRC 2023), held concurrently with IREE 2023. IRC 2023 was an international conference focused on the rail transportation sector, attracting attendees from India and overseas to discuss the latest innovations and technological advancements for the Indian Railways and the rail transportation industry.
Participated in the Rail Solution Asia 2023 Exhibition in
Malaysia, where new customers and dealers were identified for collaboration in the areas of point machine / signalling advancement.
New Products Developed During the Year
Back Drive (Secondary Drive with 220mm Throw Point Machine)
Developed the Back Drive system for the application of 1 in 12, 60 kg Rail with Thick Web Switch Turnout to ensure the proper housing of the rail up to JOH (Junction Over Head), thereby enhancing the safety of train movement at Turnout Switch. The compact system is installed on the trackside, and the associated lever mechanism is fully covered. This system can be integrated with a wide variety of point machines and locking systems, resulting in a perfectly aligned setting system.
Non Trailable – Dual Gauge Point Machine (220 mm throw)
A Non-Trailable Point Machine with a 220mm throw has been designed to operate the Rail Point of a high-speed Dual Gauge turnout, where the outer gauge is Broad Gauge and the inner gauge is Meter Gauge, utilizing BG 60 kg Thick Web Tongue Rail. This machine is capable of operating three switches simultaneously with accurate locking and detection of individual switch housing. It was specifically developed to meet the requirements of the Bangladesh Market.
Switch Board Cabinet (SBC)
Crafted and engineered switchboard cabinets tailored for LHB type coaches of the Indian railway, facilitating the control and distribution of electricity to a multitude of onboard equipment. These cabinets regulate power flow to essential systems such as coach lighting, passenger addressing systems, mobile charging outlets, compressors, boilers, and RMPUs (Rooftop Mounted Package Units).
QN1K ‘6F / 6B 24VDC RELAY
Developed the Q series Neutral Relay, renowned for its low current consumption, and which is extensively utilized in railway signaling applications. This relay complements CGs comprehensive range of Q-series Relays tailored for both Indian Railways and overseas applications.
BLDC Industrial Fans
The Company has engineered heavy-duty BLDC (Brushless Direct Current) fans designed for diverse industrial applications. These fans are equipped with BLDC technology, ensuring energy efficiency and robust performance.
Other Products Developed include the following:
Development of DC Traction motor for Overseas applications.
Development of High speed (Highest for CG) Fully suspended
Traction motor for Metro Applications.
Development of Train Control and Management Software (TCMS),
Traction Converter, and Axle hung nose suspended Traction Motor for Mainline Electric Multiple Unit (MEMU) on board.
Development of Traction Converter for 9000 HP Locomotive
Application.
Development of Fail-safe mechanism for Traction Motor in 9000
HP Bogie.
Composite converter and Hotel Load Converter.
Awards & Recognition
CG received the Dainik Bhaskar Industry Excellence Award, acknowledging its commitment to excellence and serving as a benchmark for industries in Madhya Pradesh. This recognition highlights CGs exceptional dedication, outstanding performance, and significant contribution to both society and the states economy.
POWER SYSTEMS
CGs Power Systems business focuses on Power Transmission and Distribution and setting up of integrated power systems and associated service businesses. A leader in the management and application of Electrical Energy, the Company manufactures a wide range of Switchgear and Transformer Equipment. The business also offers turnkey solutions for Transmission and Distribution (T&D) through sub-station projects, and as an Engineering, Procurement and Construction (EPC) services provider, as well as other end-to-end services involving the entire value chain.
Strengths - Power Systems Business
Comprehensive presence across the entire Power Transmission
& Distribution (T&D) Value Chain.
Offers a diverse range of products and solutions compliant with various National and International Standards.
Expertise in manufacturing, equipped with state-of-the-art manufacturing facilities and a track record of proven credentials.
Possesses extensive domain knowledge, recognized as a pioneer in technology with numerous innovations.
Implements best-in-class engineering practices.
Renowned for punctual delivery and timely project completion.
Acknowledged for swift and efficient after-sales support.
Transformer Business
CG provides an extensive range of Power and Distribution Transformers spanning from 160kVA to 1500MVA and 12kV to 765kV, respectively. Additionally, it offers Reactors ranging from 3MVAr to 125MVAr, 1ph & 3ph up to 765kV, adhering to IEC, ANSI, IS, BS, and other International Standards. Serving diverse customer segments such as Power Utilities, Process Industries, Railways, Mines, Electricity Boards, and Industrial users, the Companys transformers have demonstrated durability across various ambient climates and environments. These include sub-zero temperatures, extreme heat, high seismic zones, heavily polluted regions, moist and highly humid areas, offshore applications, and noise-sensitive neighborhoods, among others.
Products Portfolio – Transformers |
||
Product |
Range |
Industry Application |
Power Transformers |
Auto transformers upto 500MVA, Shunt Reactors upto 110MVAr (765kV) and upto 125MVAr (400 kV), Furnace Transformers, Generator Transformers, 30.24MVA Track Side Transformers 63 / 100 MVA V & Scott-Connected Transformers, 63MVA V-Connected Transformers |
Generation, Transmission, Distribution, and Railways |
| Distribution Transformers | 315KVA to 4MVA (3.3kV to 33kV Class) | Industrial Application |
Low Power Transformers |
4 to 60 MVA (11kV to 132kV Class) |
Generators, Station, Unit Auxiliary, and Multi Winding |
| Locomotive Transformers | 6.531MVA and 7.775MVA | Railways |
| Solar Transformers for Invertor Duty | Up to 12.5MVA (33kV Class) | Solar Power Generation |
| Green Transformers | 132kV | Generation, Station, Industrial, and Unit Auxiliary |
Switchgear Business
The Company provides a comprehensive array of Switchgear products, including Extra High Voltage (EHV) Switchgears like SF6 Circuit Breakers (Live & Dead Tank), Gas Insulated Switchgears (GIS), Oil Filled Current Transformers (CT), Inductive Voltage Transformers (IVT), Capacitive Voltage Transformers (CVT), Surge Arresters, Off Load Disconnectors, and Condenser Bushings. Additionally, it offers Medium Voltage (MV) Switchgears such as AIS (Indoor & Outdoor), MV GIS, Ring Main Units, Vacuum Interrupters, Compact Substations, Numerical Protection Relays, Auto-Reclosers, Vacuum Contactors, Lightning Arresters, and Isolators. CG also provides a range of Instrument Transformers and Bushings.
Products Portfolio – Switchgear |
||
Product |
Range |
Industry Application |
MV Switchgear |
Indoor Air Insulated Switchgears ("AIS") panels |
Utilities, Industries, Power plants, Railways, Infrastructure, Projects, Renewables, Smart city Projects, and Data Centres |
Outdoor Breakers, Single Pole 25kV Breaker Line up Roof Brushing Kiosk Gas Insulated Switchgear ("GIS") Indoor / Outdoor Ring Main Units ("RMU") up to 36kV Class |
||
| Relay and Automation | CG Series Current and Voltage Numerical | Utilities, Industries, Power plants, Railways, |
Protection Relay |
Infrastructure, Projects, Renewables, Smart city Projects, and Data Centres |
|
| Self-Powered Relay for Ring Main Unit | ||
| ("RMU") | ||
| Aegis Series Feeder, Transformer and Motor | ||
| Protection Relays Auto-reclose Relay | ||
Feeder Remote Terminal Unit ("FRTU") for RMU automation |
||
EHV Switchgears |
Current Transformers up to 800kV, 63kA |
Utilities, Industries, Power plants, Railways, Infrastructure, Projects, Renewables, Smart city |
Transformer Bushings up to 800kV, 63kA Inductive Voltage Transformers up to 550kV Capacitor Voltage Transformers up to 1200kV Grading Capacitors up to 420kV Surge Arrestors up to 800kV Class 5 SF6 Circuit Breakers 36kV to 765kV |
Projects, and Data Centres |
Product |
Range |
Industry Application |
Gas Insulated Switchgear 66kV to 245kV (EHV GIS) Hybrid GIS 245kV Dead Tank Breaker 72kV Surge Arrester for Gas Insulated Switchgear Application 66kV to 245kV |
||
Vacuum Interrupters up to 72.5kV, HV Instrument transformers up to 170kV and Condenser Bushings |
Vacuum Interrupters 690V to 72.5kV |
MV Switchgear manufacturers, Power transformer |
up to 72.5kV |
Vacuum Contractors and Capacitor Switches up to 36kV |
Manufacturers, T&D Utilities, Industries, Renewable Sector & Railways Track side Substation |
Auto-Recloser and Sectionalizers up to 36kV Transformer Bushing 52kV and 72.5kV, up to 5000Amp Current Transformer and Inductive Voltage Transformers ranging from 33kV to 170kV Power Voltage Transformer 72.5 to 145kV, up to 100KVA |
||
Power Quality Solutions |
Automatic Power Factor Correction System |
Transmission and Distribution Utilities, Water Supply Schemes, Steel, Cement, process Industries, |
Fixed Capacitor Banks up to 36kV |
Railways and Refineries |
|
Static VAR Compensator (STATCOM) up to 440V MV Electrical Soft Starter up to 12kV, 20MW |
||
Railways Loco Head and Trackside Products |
25kV Primary Voltage Transformer (PVT) 35kV High Voltage Bushing 27.5kV Vacuum Interrupters for Loco Head and Trackside VCBs |
Railways Loco Head & Trackside S / Stns. |
TRANSFORMERS
Business Performance
In the year gone by, the business maintained its momentum on the growth trajectory and secured several significant orders from prominent clients. Additionally, the Company obtained many more product approvals from the Indian Railways.
The Company ventured into new markets and customer segments in both India and Nepal, securing contracts with eminent entities in these regions. Further, the business maintained its presence in the Reactor Market in Greece and expanded its focus on emerging markets in Africa through Agents and the EPC model. Additionally, it provided tender support to International / Indian EPCs.
Manufacturing and Testing Expertise
The Companys transformer manufacturing units are situated in Malanpur, Madhya Pradesh, specializing in distribution, small power, dry-type, and locomotive transformers, and in Bhopal, Madhya Pradesh, producing power transformers. Manufacturing Units accredited with certifications such as ISO 9001, ISO 14001, ISO 18001, and Integrated Management OSHAS 18001.
Further, during the year, CG initiated working on the expansion of its manufacturing capacity for Power Transformers and Distribution Transformers at its plants at Malanpur and Bhopal at an investment of
Rs. 126 crores. In addition, capacity expansion has also been planned for its Power Transformers plant situated at Mandideep, Bhopal at an additional investment of Rs. 31 crores.
The Company operates cutting-edge, fully automated Transformer Testing Facilities that are accredited by NABL (National Accreditation Board for Testing and Calibration Laboratories). These facilities adhere rigorously to both Indian and International Standards and are supported by teams of qualified, seasoned, and devoted professionals. Additionally, they are outfitted with advanced software and programs, ensuring comprehensive testing capabilities and reliability.
The Business Undertook the Following Initiatives Towards Transitioning to Industry 4.0:
Deployed smart cranes equipped with features such as real-time monitoring of runtime, load capacity, and safety measures, along with an embedded anti-collision system to enhance operational safety. This initiative introduced IoT-based equipment management at the Companys manufacturing sites.
Automated core building adjustments to ensure precise alignment of core components, leading to significant reductions in setup time and calibration requirements. This integration includes data monitoring and analysis capabilities to track performance metrics and identify optimization opportunities, resulting in savings equivalent to adding one 50MVA job per year.
Enhanced machines, tooling, and material handling equipment to improve efficiency and product quality.
Cost Saving Initiatives
With a strategic focus on Total Cost Management, the Company initiated several measures aimed at improving efficiency and reducing costs while upholding quality and reliability to sustain its competitive edge. These initiatives included optimizing sourcing processes, securing forward contracts for input metals directly from mills, implementing firm price orders, maximizing the utilization of leftover materials, manufacturing minor components in-house, conducting in-house material testing, and minimizing leftover scrap.
Major Alliances and Partnerships During FY24
The Company continued to partner / collaborate with technical consultants such as Engie Laborelec, Belgium, and Lazariev
Laboratories, Estonia, for new product development and performance evaluation, respectively.
CG continued to collaborate with CPRI and NHPTL for type testing of transformers to ensure performance reliability, and with ERDA for Material testing.
Promotion and Market Development Initiatives
In FY24, the Company sustained its investment in promotional and market development activities. Regular meetings and discussions were conducted with developers such as Adani, PGCIL, and Sterlite to explore applications and new product development opportunities in the Renewable segment. Plant assessments were conducted, and approvals were obtained from entities like GETCO, AP TRANSCO, and Amazon Web Services. Additionally, the Business actively participated in exhibitions such as Trafotech and DistribuELEC, organized by IEEMA.
New Product Development Initiatives New Product Development:
16.5MVA Trackside Autotransformer developed for Indian
Railways
Developed and installed Trackside Transformer 30MVA, 132 /
27.5kV for Metro Project.
Developed and installed Highest Rating transformer for Bhopal
Metro 50MVA, 132 / 33kV transformer with additional tertiary winding for harmonic suppression.
Conducted successful short circuit testing of 8MVA 33 / 11kV transformer for Nepal Electricity Authority.
Conducted successful short circuit testing of 33kV and 11kV
Cable Boxes for Engineers India Ltd.
Constant Ohmic type design 25MVA, 132 / 33kV supplied to
Nepal Electricity Authority.
Product Upgrades:
400kV 3-Ph Reactor Technology and Process upgrades were undertaken to improve performance and reliability.
765kV 1-Ph Reactors design upgrade was undertaken for augmenting performance reliability.
500MVA 765kV autotransformer design upgrade was undertaken for performance reliability.
Application Segment Expansion or Upgrades:
Development of Environment Friendly Ester Oil Filled Power
Transformers.
Large power pooling substation transformers for solar applications of 315MVA and 400kV.
SWITCHGEARS:
Business Performance
During FY24, CG expanded its clientele significantly, penetrated diverse application sectors, and extended its market reach across local and global landscapes. Key geographies where the Company continued to strengthen its presence during the year include Ukraine, LATAM (Paraguay), Trinidad & Tobago, Italy, Nigeria, Greece, various Southeast Asian countries, North America, and the US, among others, in addition to numerous new cities within India.
In India, numerous new projects have been emerging through the TBCB routes, with a significant in_ux of solar projects facilitated by independent power producers. To facilitate power evacuation from these solar projects, associated substation and transmission projects are being initiated. Major EPC players are actively engaged and securing numerous projects within this domain. Consequently, there is a significant demand for 800 / 420kV switchgear products including Gas Circuit Breakers, Current / Voltage Transformers, Surge Arresters, and GIS. Besides, with a shift from Air Insulated Substations to Gas Insulated Substations, the demand for GIS is increasing. CG has established itself well in the 145 / 245kV range, gaining significant acceptance in the market.
The MV switchgear business expanded its presence into the
Metro segment by securing a 33kV AIS order for projects in Bhopal, Indore, and Agra Metro. This move was in alignment with its growth strategy-to move forward decisively and strategically to carve its niche in the new Mobility business segment.
The Companys commitment to quality and innovation propelled its initial foray into the South American Market, where it achieved success by securing a significant order for a 36kV GIS from Suriname.
In a demonstration of its unwavering dedication to reliability and customer satisfaction, the Company obtained a substantial order from UPPTCL for three sets of 36kV Double Busbar GIS. Additionally, CGs commitment was further underscored by securing an order for over 100 units of 36kV GIS equipment from various EPC partners.
CG successfully secured orders for 12kV RMUs to be supplied to Gujarat DISCOM under the RDSS Scheme. Additionally, the Company achieved success by procuring orders for 12kV VCBs for RDSS Projects in Maharashtra and Rajasthan.
The Company supplied switchgear to the Nepal Electricity
Authority through various EPC partners.
The Company secured an order for supply and installation of
12kV VCB to NPCIL, Kakrapar Power Plant.
The Company secured a direct order from PGCIL for 765 / 420 /
245kV Gas Circuit Breakers and Current / Voltage Transformers as part of a bulk purchase package.
It secured significant orders from various entities for projects associated with 800kV transformers. Notably, CG Power stands as the sole manufacturer of 800kV bushings in India. Additionally, CG has successfully type-tested 800kV bushings for Zone 4 seismic level, making it the first company to accomplish this test.
In the Railway segment, all CG products have received approval from RDSO (Research Designs and Standards Organization), CORE (Central Organization for Railway Electrification), DFCC (Dedicated Freight Corridor Corporation of India), and CLW (Chittaranjan Locomotive Works) for traction substations and locomotive applications. CG stands as a prominent supplier of surge arresters for locomotives. Additionally, CG has pioneered the development of critical products such as Power Voltage Transformers and arresters tailored for converter transformers.
In the Renewable Energy segment, CG is actively engaged in the development of specialized application products.
With the technological transition from Oil Impregnated Bushings to Resin Impregnated Bushings, many customers are now opting for RIP (Resin Impregnated Paper) bushings. In response to this demand, CG has commenced the production of RIP bushings up to 145kV. Notably, CG holds the distinction of being the sole manufacturer in India capable of producing complete bushings domestically. The Company recently received and fulfilled its first order for 145kV RIP bushings.
Throughout the year, the Company achieved record-breaking order inflows for Gas Circuit Breakers. It secured a notable order for a 420kV SF6 Gas circuit breaker with SCADA compatibility from Ukraine, designed to withstand extreme conditions of -40?C. Additionally, it obtained its first order for a 245kV GO GCB from Ukraine and secured two orders for 145kV GIS from LATAM (Paraguay). Furthermore, it acquired a substantial order from Trinidad & Tobago for Dead Tank Breakers.
The Company secured an order in the Italian Market through
ENEL, winning a 2-year Frame contract for GCBs.
It continued its expansion into the Metro (Mass Transit System) segment with orders from projects like Patna Metro and Agra Metro. A breakthrough order was secured from MES (Military Engineering Services) for GIS.
The Company bagged a significant order for GCBs &
Disconnectors from Nigeria.
Entered into rate contracts with a prominent client in Greece for the supply of 400kV CTs, IVTs, and 170kV CVTs. This repeat business has opened doors for the Company to European grids for 420kV instrument transformers.
Ventured into applications for Hydro Power Generation projects in Southeast Asia with product approvals obtained from utilities.
Successfully tapped the US market with approval of Oil-
Impregnated Paper (OIP) Bushings obtained from Virginia Transformers.
The business entered the African market with 145kV Power
Voltage Transformer and developed a cost-competitive frame for 145kV Current Transformers and Inductive Voltage Transformers tailored for the African market.
Obtained Life Cycle Assessment Certificate for Instrument
Transformers from ICMQ-Italy.
Initiated ambitious Assembly and Testing Outsourcing of Dead
Tank Breakers for the North American Market.
Entered the Philippines market with a 72kV Dead Tank Breaker order.
Installed a 145kV, 100kVA Power Voltage Transformer in Burkina
Faso, West Africa.
Manufacturing and Testing Expertise
The Company operates world-class Switchgear Manufacturing Facilities at two locations in India namely at Nashik and Aurangabad in Maharashtra. These manufacturing Units are accredited with certifications such as ISO 9001, ISO 14001, ISO 18001, and Integrated Management OSHAS 18001.
The Company has state-of-the-art fully automated, NABL accredited, in-house Switchgear Testing Facilities conforming to Indian and International Standards supported by qualified, experienced, and dedicated teams and is well equipped with advanced software and programs.
Further, during the year, the Company initiated the expansion of its manufacturing capacity for Instrument Transformers and Condenser Bushings, Medium Voltage Switchgear and GIS unit of its Switchgears Division situated at Nashik with a capital outlay of Rs. 155 crores.
During the year, the Company also pursued several initiatives focused on automation and modernization, including automating the design process for manufacturing instructions, implementing testing automation for numerical protection relays, upgrading PDM & Autodesk Inventor software to the 2023 version for design data management, establishing an in-house capacitor testing facility, and introducing digital displays for assembly training sessions for blue-collar workers and review meetings on the shop floor.
Some of Initiatives Undertaken Towards Augmenting Manufacturing Expertise Include:
Installation and commissioned a new crepe paper winding machine designed specifically for winding cores for 145 kV RIP Bushings. This state-of-the-art machine features closed-loop controls and cloud connectivity for seamless software updates.
Boosted manufacturing capacity by 25% through the implementation of LEAN initiatives focused on 33kV AIS and 12kV RMU Modules.
Expanded in-house manufacturing capabilities with the installation of a LASER cutting and Bending Machine dedicated to MV GIS & RMU production.
Successfully launched and commissioned a High Voltage 550kV
GIS Testing System, facilitating HV Routine Tests of GIS and leading to enhanced product quality and testing efficiency.
Introduced a fully automatic gas handling plant for streamlined gas handling processes, accompanied by a cordless high precision gas leak detector to improve handling precision and productivity.
Implemented significant indigenization efforts in Aluminum casting, resulting in reduced dependency on imports and a 25% reduction in lead time, thereby improving delivery timelines.
Established a dedicated manufacturing facility for 100KVA Power
Voltage Transformers to cater to growing demand and ensure product availability.
Enhanced manufacturing capabilities of Inductive Voltage
Transformers by 50% through rigorous LEAN and Total Quality Management (TQM) activities, ensuring improved efficiency and product quality.
Cost Saving Initiatives
The division continued with its efforts on various cost saving initiatives such as lead time reduction, diversity in sourcing, cost optimization leading to cost reduction, waste elimination, design optimization, process optimization, lean and Kaizen initiatives, Inventory measures that optimise capital deployment, etc.
Besides, the Company also implemented numerous initiatives towards promoting sustainability such as Transitioning from non-degradable plastic packaging to bio-degradable alternatives, introducing recycling programs, opting for eco-friendly alternatives, contributing to resource conservation and operational efficiency.
New Product Development Initiatives
Designed and rolled out many new compact products with new customised features. Some of the product developments include the following:
MV Switchgear
Developed the following new products:
12kV 21kA 630A 1 sec IAC AFLR RMU
12kV 21kA 630A 1 sec IAC AFLR Vertical RMU
12kV 21kA 630A Green RMU
36kV 26.3kA 630A RMU
24kV 21kA 630A RMU
Outdoor VCB 36kV 26.3kA 2500A S2 Class E2 C2
Outdoor VCB 36kV 31.5kA 2000A S2 Class E2 C2
Outdoor Two Pole Railway VCB 27.5kV 20kA 1600A
Indoor VCB 36kV 26.3kA 2000A S1 Class E2 C2
Indoor VCB 36kV 31.5kA 2500A S1 Class E2 C2
Indoor VCB 12kV, 40kA, 3150A S1 Class E2 C2
550mm wide 12kV 13.1kA 630A Indoor AIS
600mm wide 36kV 31.5kA GIS
800mm wide 36kV 31.5kA 2500A Double Bus GIS
500mm wide 12kV 26.3kA 1250A GIS
High Voltage Switchgear Products
Following new products were introduced during the year
420 kV and 245 kV Current Transformers (4 Varieties)
420 kV to 145 kV High Creepage Capacitor Voltage Transformers
(3 Varieties)
800 kV OIP Bushing with Porcelain Insulator for Seismic Zone IV
420 kV OIP Bushing with Polymer Insulator for Seismic Zone V
420 kV Wall Bushings
WRAP / CAGE Design of LA up to 60 kV
170kV 40kA Gang Operated SF6 GCB with Composite Insulator.
170kV 40kA SPAR SF6 GCB with Composite Insulator.
420kV 63kA SF6 GCB with Composite Insulator
Automatic Circuit Re-closer & Controller
Condenser bushing: 52kV, 4500A for pulling substation power transformer.
52kV, 4500Amp, 100BCT Condenser Bushing
145kV Power Voltage Transformer for auxiliary power supply in substation
33kV outdoor capacitor switch
Promotion and Business Development Initiatives
Partook in the DistribuELEC Exhibition held in Mumbai, organized by IEEMA.
Participated in the Vidarbha Industrial Expo alongside a Channel
Partner.
Conducted training seminars for various customers.
Arranged seminars and training sessions tailored for specific utilities and EPC Contractors, aimed at facilitating Spec-In and Technical Sales.
Presented technical articles and participated in technical conferences focusing on critical product requirements to enhance in-service reliability.
Established presence at international exhibitions both within and outside India, targeting business development in Africa and LATAM regions.
Took part in the MEP Consultant Meet in Goa organized by
IEEMA, showcasing CGs MV Switchgear Product offerings.
Hosted an Annual Vendor meet and organized Technical Seminars
& Presentations for key customers.
Awards
Achieved the runner-up position for the best stall in the 120 sqm to 150 sqm category at the DistribuELEC Exhibition organized by IEEMA.
BHEL, India, recognised CG with the Best Product Award which was handed over to the Company representatives by the Cabinet Minister of Heavy Industries, Government of India.
Received the Best Paper award at IEEMA for a technical article focusing on the Journey of Instrument Transformers towards unmanned substations.
CGs Switchgear Division received the coveted ‘Life Cycle
Assessment Carbon Footprint Certification for Instrument Transformers including Current Transformers, Inductive Voltage Transformers and Capacitive Voltage Transformers. The certification is received through a third-party certification agency - M/s. ICMQ, Italy as per ISO TS 14071:2016, ISO 14040:2006 & ISO 14044:2006 standards.
OTHER KEY HIGHLIGHTS
CG Forayed into Semiconductor Manufacturing as a part of its Strategic Diversification.
CG along with Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions; and Stars Microelectronics (Thailand) Public Co. Ltd, a Thailand-based Outsourced Semiconductor Assembly and Test (OSAT) provider; had during the year signed a Joint Venture Agreement (JVA) to establish a Joint Venture (JV) to build and operate an OSAT facility in India. The JV, CG Semi Private Limited, will set up a world-class OSAT facility in Sanand, Gujarat. This facility will be set up in a land area of around 28 acres with an investment of Rs. 7600 crores spread over a period of five years. This facility will manufacture a wide array of products – ranging from legacy packages such as QFN and QFP to advanced packages such as FC BGA, and FC CSP, which will cater to industries such as Automotive, Consumer, Industrial, 5G, to name a few, with a capacity to ramp up production to 1.5 crores units per day.
FINANCIAL PERFORMANCE
STANDALONE |
CONSOLIDATED |
|||
FY 2024 |
FY 2023 | FY 2024 | FY 2023 | |
7610 |
6580 | Net Sales and Services | 8046 | 6973 |
5330 |
4653 | Cost of materials consumed and components consumed and construction | 5552 | 4856 |
| material | ||||
406 |
331 | Employee benefits expense | 508 | 422 |
798 |
659 | Other expenses | 858 | 702 |
1076 |
937 | EBIDTA Excluding Other Income (OI) | 1128 | 993 |
151 |
79 | Other Income (OI) | 106 | 68 |
1227 |
1016 | EBIDTA Including OI | 1234 | 1061 |
3 |
14 | Finance cost | 3 | 16 |
78 |
75 | Depreciation and Amortization | 95 | 95 |
1146 |
927 | Profit / (Loss) before Exceptional items | 1136 | 950 |
143 |
56 | Exceptional item | 22 | 52 |
1289 |
983 | Profit / (Loss) after Exceptional items | 1158 | 1002 |
STANDALONE |
CONSOLIDATED |
|||
FY 2024 |
FY 2023 |
FY 2024 | FY 2023 | |
| Less: Tax Expenses | ||||
1 |
8 | Current Tax | 7 | 13 |
284 |
190 | Deferred Tax (Net) | 280 | 193 |
1004 |
785 |
PAT for the year from continuing operations |
871 | 796 |
- |
- | Minority Interest | 1 | 0 |
1004 |
785 |
PAT after Minority Interest |
870 | 796 |
- |
- | Profit from discontinued operation before tax | 556 | 170 |
- |
- | Tax expenses on discontinued operations | (1) | 3 |
- |
- |
Profit from discontinued operations |
557 | 167 |
1004 |
785 |
Net Profit for the year |
1427 | 963 |
1170 |
979 |
Cash profit for the year |
1245 | 1032 |
KEY RATIOS (STANDALONE) |
|||
Ratios |
FY 2024 | FY 2023 | Remarks |
Profitability Ratios |
|||
| EBIDTA Margin (Excluding OI) | 14.1% | 14.2% | No major variance |
| Operating Profit Margin (Excluding OI) | 13.1% | 13.1% | No major variance |
| Net Profit Margin (before exceptional items) | 11.3% | 11.1% | No major variance |
RONW on total operations |
30.9% | 32.3% | Return on net worth has declined during the current year due to recogination of deferred tax expense |
ROCE (excluding exceptional item) (terminal) on continuing operations |
35.9% | 39.3% | Return on net worth has declined during the current year due to recogination of deferred tax expense |
Per share Ratios |
|||
EPS (Basic ) on the basis of total profits from continuing operations (In Rs. per share) |
6.58 | 5.18 | Basic EPS increase on account of increase in profit. |
EPS (Diluted ) on the basis of total profits from continuing operations (In Rs. per share) |
6.57 | 5.14 | Diluted EPS increase on account of increase in profit. |
Leverage Ratio |
|||
| Debt Equity Ratio | 0.00 | 0.00 | No major variance |
Interest Coverage Ratio for continuing operations |
145.3 | 47.5 | Due to reduction in finance cost on account of repayment of borrowings during previous year. |
Assets Efficiency Ratios |
|||
Net Sales to gross working capital of continuing operation (Times) |
2.0 | 2.5 | Decrease is mainly on account of increase in gross working capital resulted reduction in ratio |
Net Sales to net working capital of continuing operation (Times) |
4.5 | 8.2 | Increase in net working capital resulted in reduction the turnover ratio. |
Other Ratios |
|||
| Average Debtors Turnover (no of days) | 65 | 59 | Increase in revenue resulted increase in average trade debtors. |
Average Inventory Turnover (no of days) |
40 | 37 | Increase in average inventory turnover days due to increase in average inventory |
| Current ratio | 1.80 | 1.45 | Increase in current ratio due to increase in current assets |
ENVIRONMENT, HEALTH & SAFETY (EHS)
A detailed write-up on Environment, Health and Safety ("EHS") has been provided in the Business Responsibility and Sustainability Report ("BRSR"), forming part of this report.
CORPORATE SOCIAL RESPONSIBILITY
A detailed report of CSR activities of the Company during the year 2023-24 has been mentioned in the CSR Report, which is appended with the Directors Report.
INFORMATION TECHNOLOGY & AUTOMATION
CG has undertaken a multitude of initiatives on the IT front, reflecting its commitment to staying at the forefront of technological advancement. These initiatives encompass a broad spectrum of endeavors aimed at enhancing operational efficiency, fostering innovation, and driving sustainable growth. From embracing Industry 4.0 principles to leveraging artificial intelligence (AI) through GenAI and ChatGPT, CG has initiated its digitization transformation journey.
The recent upgrades in CGs technology infrastructure have delivered substantial business benefits. These enhancements ensure the avoidance of data breaches, thus safeguarding the organization from potential damage. Additionally, they reinforce data security and trust, crucial for maintaining the Companys reputation. Furthermore, these technological advancements fortify the Companys assets against both internal and external threats, whether malicious or accidental. Finally, the upgrades aid in achieving compliance with relevant regulations and standards.
During the year, CG successfully completed a comprehensive Cybersecurity Risk assessment, including Vulnerability Assessment and Penetration Testing (VAPT) and Active Directory (AD) evaluation. With notable improvements undertaken in the year gone by compared to the previous year, this assessment yielded scaling in ratings for the Company.
CG has successfully refreshed all IT assets (endpoints) that were over five years old. This initiative ensures that the technology remains up-to-date with the latest processors and SSDs, leading to enhanced bootup speed and secure disposal of retired equipment, thereby minimizing e-waste. Additionally, this effort has streamlined asset management, resulting in several key benefits such as improved operational efficiency, optimized device and asset utilization, resulting in maximum productivity and performance, and enhanced security features.
Automation Enhancements undertaken during the year:
CG has made significant strides in automation, resulting in several key improvements:
Smart Dealer Management: Implemented technology solutions to empower dealers to conduct business independently, reducing reliance on CG branch offices. This initiative enhances efficiency by enabling faster and real-time responses while saving manpower resources.
Digitization at Shopfloor in LIM Unit: As a pilot project, CG successfully automated shopfloor operations, establishing real-time data connections for improved efficiency and productivity.
Centralized Deployment and Conversion of R&D Design Applications: By centralizing the deployment and conversion of R&D design applications, the Company aims to achieve substantial cost savings related to hardware, software, licenses, and databases. This initiative also simpli_es licensing management and enhances efficiency across the organization.
Spare Portal Development: The development of a spare parts portal will facilitate upcoming business ventures in spare parts sales, catering to both standard and non-standard spare parts requirements.
Centralized SAP Master Data Governance for Customer and Vendor: Centralizing SAP master data governance for customers and vendors has improved efficiency and cost-effectiveness, streamlining processes and enhancing data quality and accuracy.
Real-time Data Backup and Fast & Secure Restoration with Ransomware Virus Prevention: Implemented robust measures to safeguard data, including enhanced ransomware protection, immutable and air-gapped backup solutions, and instant recovery capabilities for all workloads in multi-VM infrastructure, ensuring data security and integrity.
RESEARCH AND DEVELOPMENT (R&D)
A detailed note on R&D activities during the year under review is incorporated in the Directors Report.
HUMAN RESOURCE
CG is dedicated to fostering an inclusive and discrimination-free environment, where diversity is celebrated, harmony is promoted, and fair employment opportunities are advocated. The Companys commitment to treating every individual with equal respect and dignity is ingrained in its core company values.
CG continues to uphold the principles of performance excellence and nurturance, fostering a culture that values meritocracy and discourages personal bias. The Company strives to create an atmosphere where all employees can thrive based on their skills, abilities, and performance.
Furthermore, CG actively promotes the highest standards of human rights protection, systematically integrating these principles into its business operations and relationships. This ensures the prevention of human rights violations across its value chains.
In its pursuit of excellence, CG prioritizes in hiring the best quality and passionate talent for its businesses. The Company believes in providing mutual opportunities for both personal and professional growth, enabling its employees to contribute meaningfully to the business while advancing in their careers.
By embracing these values, in addition to creating a conducive work environment, the Company also contributes to a positive societal
52 impact. CG encourages all those associated with it to join in upholding these principles and fostering a workplace that thrives on equality, respect, and opportunity for all.
CG hired 439 positions through the financial year 2023-24 to support and accelerate the business growth. As at the end of the year, the Company had a total of 6830 employees out of which 3712 employees were on temporary / contractual / casual basis.
Talent and Performance
The Company, through its Performance Management Process known as PRIDE (Personal Responsibility in Delivering Excellence), is committed to aligning rewards with performance. CG steadfastly concentrates on elevating the talent pool by actively encouraging employees to enhance their skills through comprehensive learning and development programs.
PRIDE serves as a framework that emphasizes personal responsibility in delivering excellence, ensuring that individuals are recognized and rewarded based on their performance outcomes. This approach not only fosters a culture of accountability but also reinforces a meritocratic system within the organization.
In tandem with its commitment to performance excellence, CG places a strong emphasis on continuous learning and development. The Companys comprehensive programs are designed to empower employees to upskill, stay abreast of industry trends, and unlock their full potential. By investing in the professional growth of its workforce, the Company aims to cultivate a dynamic and adaptable team that can thrive in an ever-evolving business landscape.
Through the integration of PRIDE and its robust learning initiatives, CG is dedicated to building a high-performing, agile, and empowered workforce that contributes to the sustained success of both the Company and its employees.
Learning and Development
Throughout the year, CG has actively curated a diverse array of learning and development initiatives aimed at elevating the capabilities of its employees. These programs spanned a wide range of essential facets, including executive presence, teamwork and collaboration, conflict management, leadership effectiveness, influencing skills, and addressing decision-making biases.
In addition to these initiatives, the Company has conducted awareness sessions specifically centered around Environmental, Social, and Governance (ESG) practices. These sessions were designed to deepen the understanding of its workforce on the importance of responsible business practices and sustainable approaches.
Recognizing the pivotal role of its sales professionals, CG introduced a dedicated Sales and Marketing Excellence Program. This program is tailored to refine selling skills and strategies, equipping our sales teams with the tools and knowledge needed to excel in a competitive market environment.
Demonstrating its unwavering commitment to operational excellence, the Company organized specialized training sessions in Smart Manufacturing and Poka Yoke methodologies. These sessions aimed to enhance the skills and knowledge of its workforce, ensuring that they stay at the forefront of industry trends and best practices.
These collective initiatives underscore the Companys steadfast dedication to encourage a culture of continuous learning and innovation within the organization. By investing in the development of its employees across diverse skill sets, CG strives to create a dynamic and adaptive workforce that contributes to the long-term success of the Company and its employees.
Employee Engagement
Several meaningful employee engagement activities related to Employees Health, Employees Social Responsibility, Employee Assistance Program were carried out throughout the year. Employee care and connect initiatives like health Awareness program, walkathon, sports day, festive days were rolled out during the year, which reflected the Companys concern for employees physical as well as emotional wellbeing. With the belief that shared social responsibility between employee and the Company create better emotional engagement, initiatives like blood donation camp were carried out by contributing jointly to the society at large. Initiatives were taken to celebrate region specific cultural events to ensure the emotional connect between the employees and the Company. Periodic town-halls are also conducted by all divisions to strengthen the connect with the employees.
Diversity & Inclusion, and Women Empowerment
Gender Diversity and Equality is a top priority at CG. Conscious efforts are made to increase the female ratio from its current level. As a part of this efforts, out of the total fresh recruits, 10% are females. The
Company has also welcomed especially abled candidates through the hiring process.
Digitisation of HR Processes
The commitment to digitizing HR processes remains a top priority for the Company, and it has made significant strides in upgrading both hardware and software platforms. As part of this initiative, the assessment of graduate trainees has successfully transitioned to a digital method, underscoring CGs dedication to modernizing and streamlining its recruitment processes for enhanced efficiency.
Currently, the Company is in the process of adopting a Learning Management System (LMS), and efforts are being put to seamlessly integrate the same with its Human Resource Information System (HRIS) module, which will enable the Company to create a more cohesive and technologically advanced ecosystem for managing learning and development initiatives within the organization.
By embracing digital solutions, the Company aims to not only enhance the overall efficiency of HR processes but also provide a more user-friendly and accessible experience for both employees and the management.
INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
The Company believes that internal control is one of the key pillars of governance and strongly promotes a culture of integrity, transparency, and accountability in the business operations. Given the nature of business and size of operations, the Company has designed and instituted a robust internal control framework that comprises a well-defined organization structure, roles and responsibilities, documented policies and procedures and technology enabled processes to identify and mitigate business risks effectively as well as ensure the smooth and efficient operation of the Company.
The Company has established the "Three Lines of Defense" model to provide layers of protection against risks and ensure effective governance:
First line of Defense: Self review and assessment by the process owners / line managers to ensure controls and adherence to policy and procedures. There is a well-defined management information & reporting framework in place at functional level and entity level to regularly report the key information, performance indicators, trends and exception to the function and business heads.
Second line of Defense: Regular business and functional review meetings along with close supervision by business heads and senior management to ensure strong oversight the business operation, along with compliances enabling timely identification and remediation of emerging risks. Compliances to defined internal controls system are incorporated into performance measurement of Function head, Business Heads and CXOs.
Third line of Defense: Internal Audit conducted by the specialized internal audit firm to provide independent and objective assurance on adequacy and effectiveness of internal controls to the Audit Committee. Additionally, internal financial controls assessment also carried out by the internal audit firm to validate the adequately of internal controls in place.
Revenue and expenditures are governed by approved budgets and the levels are defined by a delegation of authority mechanism. Review of capital expenditure is undertaken with reference to benefits expected in line with the policy for the same.
Investment decisions are subject to formal detailed evaluation and approved by the relevant authority as defined in the delegation of authority mechanism. The Audit Committee reviews the plan for internal audit, significant internal audit observations and functioning of the Companys Internal Audit department on a periodic basis.
The Company has also established whistle-blower mechanism operative across the Company for reporting of any unethical behaviors by employees, directors, vendors and business partners.
Initiatives
With the intent to build a strong control environment and adapting to evolving risks and challenges, the management is continuously improving the systems and processes through various initiatives in the recent years. Here are some select initiatives undertaken by the management.
Technology Initiatives
Upgrade to the S4 HANA version of the Enterprise-wide Resource
Platform system significantly boasts seamless integration capabilities with other key business systems, facilitating smoother data flow and communication across various departments and functions. Moreover, the systems well-designed inbuilt controls provide robust safeguards, ensuring data integrity, security and also enhances the efficiency and scalability of business operations processes.
In-house Human Resource Management system has undergone significant enhancements to digitize Hire to Retire process for employees. By digitizing these activities, the portal has effectively replaced manual dependency with automated preventive controls, ensuring greater efficiency, accuracy, and compliance throughout the organizations human resource operations.
In-house Vendor Management Portal has been enhancements, now seamlessly integrated with the existing ERP system to digitize the vendor management process. This comprehensive transformation encompasses online vendor registration, streamlined order management, vendor quality assessments, and efficient delivery scheduling. By digitizing these critical aspects of vendor management, the portal not only enhances operational efficiency but also improves collaboration, transparency, and internal controls across the supply chain.
In-house ‘Sales and Marketing Portal has been enhanced to digitize customer life cycle management processes including online customer registration, KYC validation and credit assessment approvals, enquiries & order management.
Master Data Management System is being implemented to centralize the Master Database for vendors and customers of different business verticals. A unified view of master data enables in greater efficiency and internal controls over the onboarding process, customer and vendor risk assessment, MSME vendor compliances, account reconciliation and performance evaluation.
Activity based Costing (ABC) system has been implemented in
ERP to enhance the accuracy of the allocation and tracking the costs associated with products, services, and activities. This allows insightful analysis of cost and profitability of products, customers, and market segments, thereby enabling in better decision-making regarding pricing, product mix, and cost reduction strategies.
Material handling process is being digitized at manufacturing locations, thereby optimizing operational processes and strengthening internal controls and monitoring of manufacturing operations.
E-Auction process has been implemented in recent years to dispose of the scrap and surplus materials. By utilizing an online e-auction platform, it has increased reach to larger number of buyers and encouraged competitive bidding among buyers for better prices on the scrap sales. It also provides transparency and improved controls in the bidding process.
Contractor Labour & Attendance Lifecycle management tool is being deployed across the manufacturing locations to digitize the Contractor Management activities including induction of new contract worker, KYC documentation, safety training compliances, attendance recording and verification.
Security & Visitor Management system has been implemented at the manufacturing locations thereby enhancing safety and controlling access within their premises. By digitizing security management system, the Company has further strengthened the security protocols at entry and exit points including tracking of visitor activity.
Process Initiatives
Crisis Management and Business Continuity assessments were conducted by specialized third party consultant for evaluating the potential risks, assessing preparedness measures, and testing response protocols to ensure resilience in the face of various crises or disruptions.
Similarly, Physical Security Assessment was conducted by specialized consultant to evaluate and enhance security measures at manufacturing locations. Assessment involved an examination of physical access controls, surveillance systems, perimeter security, emergency response protocols, and other aspects of physical security infrastructure to ensure preventive measures are in place to avoid any major security incident.
GRC & SOD (Segregation of Duties) Assessment reviews are periodically carried out by engaging independent consultants to identify and remediate the conflicting roles and user access rights within the system, thereby ensuring the adequate segregation of duty controls are in place.
Internal Financial Controls Framework (including Risk Control
Matrices (RCM) of all financial processes and IT general controls) are periodically redesigned and assessed to align with existing process and system controls.
People initiatives
Regular workshops are carried out with employees (including functional and business heads) to create awareness about importance of risk management and internal control system. These workshops serve as essential platforms for educating employees on identifying, assessing, and mitigating risks across various operational processes. The training are mandatory and training modules are also available in form of e-learns which are readily accessible to employees.
Implementation of Safety training module for employees, contract staff and visitors, who need to undergo essential safety training before commencing work or entering the premises. This module covers key safety protocols, hazard awareness, emergency procedures, and site-specific guidelines, ensuring that all individuals are adequately prepared to mitigate risks and adhere to safety regulations.
RISK MANAGEMENT
CG Power and Industrial Solutions Limited navigates a landscape fraught with a multitude of internal and external risks spanning financial, operational, sectoral, technological, ESG-specific, cybersecurity, and geopolitical domains. Given the extensive scope of its business portfolio and the global reach of operations, CG has implemented a Board-approved Risk Management Charter & Policy to establish a structured and comprehensive enterprise risk management system. This charter is designed to foster a shared understanding, standardize terminology, and delineate an approach for identifying, assessing, responding to, monitoring, and reporting risks. Its primary aim is to provide assurance to management that key risks are identified and effectively managed across the organization. CGs initiatives towards Enterprise Risk Management (ERM) strive to cultivate a ‘Risk Intelligent culture within the Company, bolstering resilience against significant risk exposures while promoting agility and competitive advantage to safeguard and enhance long-term stakeholder value.
To oversee this process, the Company has instituted a robust governance structure, led by the Risk Management Committee of the
Board (RMC). At the operational level, a dedicated ERM team centrally coordinates the deployment of the ERM framework, ensuring consistent application throughout CG. While final accountability for implementing risk response strategies lies with senior executives or designated risk owners within functional units, the ERM framework draws on insights gleaned from leading industry practices and international standards such as ISO31000.
CGs ERM framework has played a pivotal role in the detection and evaluation of unforeseen risks, equipping management with the insights needed to make well-informed decisions. The ERM team enhances process efficiency by actively involving a diverse range of internal stakeholders through a bottom-up approach, as illustrated in the diagram below. Throughout each stage, senior management exercises vigilant oversight, conducts thorough reviews, and offers guidance to ensure the effectiveness of the process.
Following are the primary risks and its mitigation strategies adopted by CG:
Risk Statement |
Mitigating Actions |
Delays in capacity expansion projects poses a significant challenge to the organizations ability to meet the growing demands and may |
Established structured processes to enhance project planning, management, and bolstering internal capabilities. |
result in lost revenue opportunities |
Utilized project management proficiency to ensure the successful execution of diverse projects. |
| Leveraged regulatory expertise to secure timely approvals and sanctions from authorities. | |
| Ensured supply of critical equipment as per schedule. | |
Neglecting to uphold sufficient health and safety standards could result in substantial costs, liabilities, and tarnish the Companys |
The organization rigorously adheres to various policies, initiatives, and guidelines to uphold elevated safety standards throughout its operations. |
reputation. |
Safety training calendar has been developed and employees are mandated to attend these trainings. |
Risk Statement |
Mitigating Actions |
| Preventive maintenance plan for safety equipment is updated on an annual basis. | |
Regular safety audits are conducted to identify deficiencies in the safety standards and policies. |
|
| Safety protocols are displayed at each workstation | |
The risk of failing to attract and retain talent poses a significant challenge to the organizations ability to maintain competitiveness, innovate, and achieve strategic objectives. |
Developed a comprehensive recruitment strategy that emphasizes the organizations culture, values, career advancement opportunities, and competitive compensation packages to attract top talent. |
Implemented talent development programs, including mentorship opportunities, skills training, and leadership development initiatives, to foster employee growth and retention. |
|
Established a culture of recognition and rewards by implementing employee recognition programs, and regular feedback mechanisms to acknowledge and appreciate employee contributions. |
|
Implemented employee engagement initiatives, such as team-building activities, social events, and employee resource groups, to foster a sense of belonging and camaraderie among employees. |
|
Developed a robust succession planning process to identify high-potential employees and provide them with opportunities for career advancement within the organization, thereby increasing employee retention. |
Risk Statement |
Mitigating Actions |
Failure to promptly leverage technology to meet customer expectations and address technological obsolescence may result in products becoming outdated. |
The Company is actively pursuing opportunities through a blend of in-house development, and Technology Collaboration Agreements with established industry players. |
The Company has been undertaking development and upgradation of technologies through in-house efforts viz. develop and production RIP Bushing, BLDC motors and fans. |
|
Continuous enhancement in R&D resources and capabilities to expedite the time to market for new solutions and technologies. |
|
Currency fluctuations, changes in commodity prices, and reliance on imports can have an |
Employed market intelligence and commodity price trend analysis to establish rate contracts for key critical material categories. |
impact on both production and margins. |
Implemented cost reduction projects to mitigate the impact of commodity fluctuations. Maintained a reserve stock of critical imported materials for two months to address unforeseen situations. |
Developed alternative local vendors to reduce the impact of rising imports and material costs. |
|
Cyberattacks and network breaches can result in financial losses and damage to reputation of |
The organization has clearly outlined Information Security Management System policies and governance structure. |
the organization. |
Multiple layers of cybersecurity and network security measures have been implemented, including firewall protection, gateway security, email gateway security, internet proxy, and antivirus systems. |
Data backup and restoration processes are fully encrypted using Veeam Software, enabling real-time restoration and protection against malicious attacks. |
|
Organized organization-wide phishing mock drills to enhance preparedness and awareness. |
|
CG ensures robust cyber resilience through Implementing a business continuity plan and establishing data center / disaster recovery mechanisms for business applications and Conducting Vulnerability Assessment and Penetration Testing (VAPT) |
BUSINESS OUTLOOK
CGs continued progression over the last three consecutive years after it became a part of Tube Investments (Murugappa Group) in November 2020, is attributed to its strong organizational dynamics, characterized by its agility and adaptability in response to shifting business environments, strategic focus on product evolution and R&D, prudent financial management, commitment to operational efficiency including enhanced focus on digitization and automation, and a robust governance framework.
True to its commitment to ESG, CG has successfully integrated ESG considerations into its strategic decision-making process thereby driving sustainable growth, and ultimately creating long term value for all its stakeholders.
The Company is optimistic about future growth prospects underpinned by its internal strengths which it continues to fortify and augment, combined with Indias growth narrative–driven by several key factors including robust and progressive manufacturing, emphasis on capital investments, innovation, and technological advancements, thrust on infrastructure augmentation, and resilient capital market dynamics, which is further buoyed by positive external factors such as the widespread adoption of the China + 1 strategy by global corporations. All this heralds a promising business outlook for the Company.
Forward looking statement
This report contains forward-looking statements, which may be identified by their use of words like ‘plans, ‘expects, ‘will, ‘anticipates, ‘believes, ‘intends, ‘projects, ‘estimates or other words of similar meaning. All statements that address expectations of projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Companys actual results, performance or achievements could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. The Company has sourced the industry information from the publicly available resources and has not verified those information independently.
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