CG Power and Industrial Solutions Ltd has recently announced a significant long-term supply agreement with Kinet Railway Solutions Limited for railway products. The agreement includes an initial purchase order valued between ₹400-450 crores, covering the supply of propulsion kits with motors, transformers, and other components for 10 Vande Bharat trainsets.
Following this announcement, the shares of CG Power and Industrial Solutions Ltd closed today at ₹612.50, marking an increase of ₹15.70 or 2.63 per cent on the NSE.
The agreement also entails a separate 35-year service contract, ensuring CG Power’s sustained long-term revenue from this partnership. With a strong presence in the railway industry for 86 years, CG Power offers a portfolio that includes traction machines and systems, railway propulsion systems, and signaling products. The company has recently diversified into the Train Collision Avoidance System (KAVACH) domain.
Headquartered in Mumbai, CG Power operates 18 manufacturing plants across India and Sweden, with a workforce of approximately 3,113 employees. In the fiscal year 2024, the engineering conglomerate reported consolidated revenue of ₹8,046 crores (USD 964 million).
Since November 2020, CG Power has been a part of the Murugappa Group, a 123-year-old conglomerate with various business interests and nine listed companies under its umbrella. The Murugappa Group reported revenue of ₹742 billion across sectors including agriculture, engineering, and financial services.
Overall, this long-term supply agreement with Kinet Railway Solutions Limited marks a significant milestone for CG Power and positions the company for sustained growth and revenue in the railway sector.
