CG Power acquires 55% Stake in G.G. Tronics, enhancing rail safety with KAVACH System

In a strategic development, CG Power and Industrial Solutions Ltd. has reached a significant milestone by acquiring a 55% stake in G.G. Tronics India Pvt. Ltd. This acquisition strengthens CG’s position in the market and enhances its capabilities in delivering innovative solutions for the railway sector.

More Details:

CG Power and Industrial Solutions Ltd. (CG), a leader in the Electrical Engineering Industry, has completed the acquisition of 55% stake in G.G.Tronics India Private Limited (GGT) for an aggregate consideration of up to Rs. 319.38 crores. With over 86 years of experience, CG has built a strong reputation in the railway industry, providing a diverse range of products, including traction machines and systems, complete railway propulsion systems, and electro-mechanical railway signalling products.

Objective and Impact of Acquisition :

  • This acquisition is in line with CG’s strategic intent to expand its Railway product portfolio by diversifying into closely related or adjacent areas poised for growth. The integration is anticipated to leverage synergies between the companies.
  • CG’s extensive expertise in manufacturing, engineering, and project management, complemented by GGT specialised knowledge in Railway Transport Safety, particularly in the Train Collision Avoidance System ‘KAVACH,’ and embedded systems will enable CG to actively pursue ‘KAVACH’ and other Rail Safety projects, in the areas of Electronic Signalling Sector through this vehicle.

Experts Insights:

Mr. Natarajan Srinivasan, Managing Director, CG Power and Industrial Solutions Limited, said, “This is a crucial step forward for CG in further consolidating our position in the Railway Industry. It underscores our commitment to advancing our product portfolio with cutting-edge railway safety signalling technologies such as the ‘KAVACH’ Train Collision Avoidance System, as well as innovating further with developments like Moving Block System for line capacity enhancement, Electronic Interlocking for Indian Railways, and CBTC for metro rail, amongst others. By integrating GGT’s specialised capabilities, we are poised to deliver enhanced value and reliability to our customers in the Indian Railways sector, reaffirming our commitment to innovation and operational excellence. With a steadfast commitment to Make in India, for the World, we anticipate significant potential for expanding these technologies internationally.”

Mr. N. Manjunath, Founder, G.G.Tronics, said, “By partnering with CG, we will be able to leverage their advanced manufacturing and engineering expertise, thereby bolstering our growth, and further strengthening our position in the Railway Transport Safety Signalling sector. This partnership will enable us to expand our geographical footprint, achieve economies of scale, and optimise our supply chain management. These synergies with CG having expertise in Locomotives – Power Electronics, Propulsion Systems, and Electricals & Rolling Stock, and GGT’s prowess in Railway Signalling will drive technological integration through joint R&D efforts and facilitate global market expansion.”

Conclusion:

CG Power’s acquisition of a 55% stake in G.G. Tronics India enhances its railway portfolio and rail safety capabilities. By integrating GGT’s expertise in systems like ‘KAVACH,’ CG aims to drive innovation and strengthen its position in the rail safety sector.


Source: CG Power – Press Release | Image Credit (representational): CG Power & G.G.Tronics