CG Power Calls It ‘Amrit Kaal’ for Power Sector, Scales Transformer Capacity from 18,000 MVA to 1,10,000 MVA by End-2026

CG Power Calls It ‘Amrit Kaal’ for Power Sector, Scales Transformer Capacity from 18,000 MVA to 1,10,000 MVA by End-2026

-CG Power Says ‘Game Has Just Started’ as Order Momentum Builds Across Power Markets

The Electrical Post

CG Power and Industrial Solutions Ltd. continues to witness strong momentum across its power products business, with Managing Director and CEO Amar Kaul expressing confidence that the growth cycle in the sector is only beginning.

Speaking during the company's Q4 FY26 earnings interaction, Kaul said demand for transformers, switchgear and other power products remains robust both in India and international markets, supported by expanding transmission infrastructure and rising investments in utilities.

"The game has just started," Kaul remarked, indicating that the company's recently announced Rs. 900 crore transformer order for a US data centre is only one example of the opportunities emerging globally.

According to Kaul, the company continues to see significant opportunities across markets, driven by the need for quality execution, reliability and adherence to global standards.

"Anything we touch just opens up. There is so much opportunity available for everybody. You just need to know how to encash on it and execute with the right quality and standards," he said.

On the domestic front, Kaul described the current period as an "Amrit Kaal for the power sector in India," highlighting the unprecedented rise in transformer manufacturing capacity and sustained demand from utilities.

CG Power has expanded its transformer manufacturing capacity from around 17,000–18,000 MVA a year ago to nearly 65,000 MVA currently, with customers and utilities continuing to seek additional supplies.

"We keep hearing from customers and government utilities – give us more, give us more. Nobody is saying stop it," Kaul stated.

The company expects further capacity expansion through its upcoming greenfield facility, which is scheduled for commissioning between July and August 2026. Initially, the plant will add 25,000–30,000 MVA of capacity and is expected to reach 45,000 MVA by the end of calendar year 2026.

With existing facilities in Gwalior and Bhopal already expanded, CG Power expects its overall transformer manufacturing capacity to reach approximately 1,10,000 MVA by the end of 2026.

On the motors business, Kaul indicated that recent growth has been driven equally by volume expansion and pricing discipline, with approximately half of the growth attributable to market-linked volume increases and the remainder supported by pricing actions.

The company continues to closely monitor commodity inflation while maintaining strict pricing discipline to prevent discount-led margin erosion.

Regarding energy-efficient motors, Kaul noted that adoption of IE3, IE4 and IE5 technologies in India remains gradual despite increasing emphasis on energy efficiency. However, he expects demand to accelerate over the next few years as regulatory requirements tighten and energy consumption rises.

CG Power is simultaneously strengthening its product portfolio, with development of advanced energy-efficient motors progressing steadily.

In the drives segment, the company has initiated the rollout of its next-generation AMX Drives portfolio. Kaul stated that low-voltage drives are already almost entirely indigenous, underscoring the company's focus on localization and domestic manufacturing.

The company also shared progress on its Gas Insulated Switchgear (GIS) programme. Testing for the 400 kV GIS platform is proceeding according to schedule, with commercialization expected during FY27 following successful completion of type testing in international laboratories. Development discussions for 765 kV GIS solutions are also underway.

Beyond power equipment, Kaul highlighted encouraging progress at GG Tronics, where the order backlog currently stands at approximately Rs. 1,000 crore. Passenger trials are progressing, with 12 trials already completed, and commercial execution is expected to commence within the next one to one-and-a-half months after approvals are finalized.

The management's commentary reinforces CG Power's positive outlook on the power sector, supported by rising transmission investments, accelerating utility demand, capacity expansion initiatives and increasing opportunities in domestic as well as export markets.
 

Published at : Sep 12, 2026 10:10 AM (IST)

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