CG Power Divests Indonesian Subsidiary, Refines Corporate Structure

CG Power and Industrial Solutions Limited has divested its stake in PT Crompton Prima Switchgear Indonesia (CPSI). The sale was executed through its Singapore subsidiary, CG International Holdings Singapore Pte Ltd (CGS), and means CPSI is no longer part of CG Power's global operations.

What just happened

On April 1, 2026, CG Power and Industrial Solutions Limited announced that its Singapore subsidiary, CG International Holdings Singapore Pte Ltd (CGS), signed an agreement to sell PT Crompton Prima Switchgear Indonesia (CPSI). Following this sale, CPSI will no longer be a step-down subsidiary of CG Power. The company had previously disclosed information about this transaction on February 25 and March 5, 2026.

Why this matters

This sale is a strategic move to adjust CG Power's international holdings. By exiting CPSI, the company aims to simplify its structure and focus resources on its main business areas. Such portfolio changes are common for large companies looking to improve operations and value for shareholders, particularly after periods of growth or restructuring.

The backstory

CG Power, previously Crompton Greaves, has undergone major changes. In 2016, it spun off its consumer business into the separately listed Crompton Greaves Consumer Electricals Limited. The company faced severe financial and governance issues in August 2019 due to unauthorized transactions that understated liabilities and advances. In September 2020, the Murugappa Group, through Tube Investments of India, acquired a controlling stake, bringing a new strategic focus. CG Power has previously streamlined its subsidiaries, dissolving CG Power Solutions UK in June 2023 and approving other overseas liquidations. Recently, the company announced a significant ₹7600 crore investment to build a semiconductor unit in Gujarat, partnering with Renesas Electronics and Stars Microelectronics, indicating a shift towards new growth areas.

What changes now

• PT Crompton Prima Switchgear Indonesia (CPSI) is no longer a step-down subsidiary of CG Power.
• CG Power will no longer include CPSI in its consolidated financial reporting or operational oversight.
• This sale helps CG Power continue refining its global corporate structure.

Risks to watch

While this divestment is strategic, investors may recall CG Power's past corporate governance issues from August 2019, which caused significant financial distress and regulatory attention. In April 2023, SEBI penalized two former auditors for misrepresenting financial statements, highlighting past compliance issues. The company also faces tax demands totaling ₹248 crore from the Income Tax Department.

Peer comparison

CG Power competes with global players like Siemens and Schneider Electric, and domestic companies such as Havells India and Bharat Heavy Electricals Limited (BHEL). These competitors also navigate complex market dynamics, frequently using acquisitions, divestments, and joint ventures to maintain leadership and adapt to technological changes.

Context metrics

• No specific financial metrics for this transaction were provided in the filing.

What to track next

• Details on the financial terms of the CPSI sale.
• CG Power's focus on its core Industrial and Power Systems businesses.
• Progress of the ₹7600 crore semiconductor unit project in Gujarat.
• Any further portfolio adjustments or strategic investments by CG Power.
• How ongoing tax disputes are resolved.