Capacity Expansion
CG Power Commissions Extra High-Voltage Switchgear Manufacturing Facility in Nashik, Expanding EHV Capacity by 80%
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CG Power and Industrial Solutions Limited announced the commissioning of its new Extra High-Voltage (EHV) Switchgear Manufacturing Facility (S3 Unit-II) in Nashik, Maharashtra. The facility expands the company’s EHV circuit breaker manufacturing capacity by 80%, supports growing domestic and export demand, and forms part of its broader greenfield switchgear expansion strategy.
PRICE-SENSITIVE TRIGGER
Event: Commissioning of a new Extra High-Voltage Switchgear Manufacturing Facility.
Type: Capacity Expansion
Impact: Positive
Immediate Effect: The new facility significantly increases manufacturing capacity, strengthens CG Power’s position in the high-voltage transmission equipment market, and improves its ability to serve utilities, railways, renewable energy projects, and export customers.
Key Metrics:
- Existing EHV Manufacturing Capacity: 9,000 units annually
- Existing Capacity Utilization: Approximately 85%
- New Capacity Addition: 7,200 units annually
- Capacity Expansion: Approximately 80%
- Investment Made: ₹39.49 crore
- Greenfield Switchgear Project Cost (Earlier Announced): ₹748.20 crore
- Funding Source: Internal accruals
- Commercial Production Commencement: 4 June 2026
- Capex Utilization for Greenfield Project: Expected to utilize approximately 97% of facility capex
Highlight:
- Commissioning of a new EHV switchgear facility adds 7,200 units of annual capacity, increasing CG Power’s EHV manufacturing capability by approximately 80%.
What Happened ?
CG Power and Industrial Solutions Limited commissioned its Extra High-Voltage Switchgear Manufacturing Facility, S3 Unit-II, located in Pimpalgaon Garudeshwar, Nashik, Maharashtra.
The facility has been established to manufacture EHV circuit breakers in the 33 kV to 245 kV range and includes advanced testing infrastructure such as 350 kV and 500 kV high-voltage testing laboratories.
The commissioning forms part of the company’s broader switchgear expansion strategy announced earlier to strengthen its Medium Voltage (MV) and Extra High Voltage (EHV) product portfolio and support increasing demand from domestic and international markets.
Key Details
Nashik EHV Manufacturing Expansion:
- New facility commissioned on 4 June 2026.
- Located at Pimpalgaon Garudeshwar, Nashik, Maharashtra.
- Facility designated as S3 Unit-II.
- Manufactures EHV circuit breakers in the 33 kV to 245 kV range.
- Existing S3 Unit-I facility manufactures circuit breakers in the 33 kV to 800 kV range.
- Existing annual capacity stood at 9,000 units.
- Existing utilization level was approximately 85%.
- New facility adds 7,200 units of annual manufacturing capacity.
- Capacity expansion increases EHV manufacturing capability by around 80%.
- Includes 350 kV and 500 kV high-voltage testing laboratories.
- Investment in the facility amounts to ₹39.49 crore.
- Funded through internal accruals.
- Facility supports utilities, railways, renewable energy, oil & gas, and transmission infrastructure sectors.
- Designed with energy-efficient systems, rainwater harvesting, water recycling, and zero liquid discharge operations.
- Expected to support the company’s export growth strategy.
- Facility forms part of the broader greenfield switchgear manufacturing project announced earlier.
Note:
- The commissioning addresses capacity constraints at existing facilities and positions CG Power to capitalize on increasing investments in transmission infrastructure, renewable energy integration, and grid modernization.
Risk Analysis
Summary:
- The expansion is strategically positive; however, long-term returns depend on sustained demand growth, project execution, and capacity utilization levels.
Key Risks:
- Demand growth in transmission and power infrastructure must remain strong to support utilization.
- Export market demand may fluctuate due to global economic conditions.
- Delays in broader greenfield project execution could affect expected benefits.
- Competitive pressures in switchgear manufacturing may impact margins.
- Infrastructure and utility capex cycles can influence order inflows.
- Large capacity additions require efficient ramp-up and operational execution.
Worst Case Scenario:
- If demand growth slows or capacity utilization remains below expectations, the return on invested capital from the expansion could be delayed.
Risk Level: Low
Company Commentary
- Commissioning of S3 Unit-II marks an important milestone in the company’s growth journey.
- Management sees significant opportunities from grid expansion, renewable energy integration, and infrastructure development.
- The facility enhances the company’s ability to deliver high-voltage transmission equipment at scale.
- Investment reinforces CG Power’s commitment to innovation, quality, and operational excellence.
- Sustainability features have been incorporated to improve resource efficiency and reduce environmental impact.
- The facility strengthens the company’s ability to serve both domestic and international customers.
Official Exchange Filing: CG Power and Industrial Solutions Limited