CG Power Boosts EHV Switchgear Capacity in Nashik

CG Power and Industrial Solutions Ltd. has commissioned its new S3 Unit-II EHV (Extra High Voltage) Switchgear Manufacturing Facility in Pimpalgaon Garudeshwar, Nashik, Maharashtra. The facility represents an investment of ₹39.49 crore, financed through internal accruals.

What just happened

Commissioning of S3 Unit-II EHV Switchgear Manufacturing Facility in Nashik.

Why this matters

This expansion increases CG Power's EHV circuit breaker manufacturing capacity by 7,200 units, an 80% addition, to meet growing demand from key infrastructure sectors.

Reader Takeaway: Capacity expansion meets demand; funded internally, maintaining financial flexibility.

What just happened

The newly commissioned S3 Unit-II facility is dedicated to manufacturing EHV circuit breakers, covering the 33kV to 245kV range. It is equipped with advanced testing laboratories, including 500kV and 350kV high-voltage testing capabilities.

This expansion is a strategic move to address existing capacity constraints, with the company noting an 85% utilization rate at its current plant. The enhanced production is targeted at high-growth sectors like utilities, railways, renewable energy, and oil and gas.

CG Power clarified that this project is separate from a larger, previously announced greenfield Switchgear Business project estimated at ₹748.20 crore.

Why this matters

This facility expansion is a direct response to market demand and operational pressures. By increasing its manufacturing output of critical high-voltage equipment, CG Power is positioning itself to capitalize on significant growth opportunities.

These opportunities stem from ongoing grid expansion projects in India, the integration of renewable energy sources requiring robust transmission infrastructure, and overall infrastructure development. The company also sees potential in global markets for its high-voltage transmission equipment.

The backstory

CG Power has been a significant player in electrical engineering solutions. This expansion aligns with its broader strategy to strengthen its position in the high-growth segments of the electrical industry.

What changes now

The commissioning of S3 Unit-II immediately addresses the capacity bottleneck, enabling CG Power to fulfill a larger volume of orders. This is expected to support revenue growth in the coming quarters and improve market responsiveness.

Risks to watch

While the expansion is positive, investors will watch for the ramp-up in production and the successful conversion of increased capacity into higher sales volumes. Execution risks associated with managing multiple expansion projects, including the larger greenfield facility, will also be a factor.

Peer comparison

CG Power operates in a competitive landscape with other major electrical equipment manufacturers in India. Companies like ABB India and Siemens India also have significant presence in the switchgear and power transmission segments. CG Power's focus on EHV and investment in capacity are key differentiators.

Context metrics

• Investment: ₹39.49 crore (internal accruals)
• Capacity Addition: 7,200 units (EHV Circuit Breakers)
• Capacity Expansion: 80%
• Existing Capacity: 9,000 units (S3 Unit-1, as of June 2026)
• Target Sectors: Utilities, Railways, Renewables, Oil & Gas

What to track next

Investors will be keen to see the utilization rates of the new facility and its contribution to CG Power's revenue and profitability in subsequent financial results. The progress on the larger greenfield project will also be a key area of focus.