The Murugappa Group company CG Power and Industrial Solutions will spend roughly Rs 347 crore, including the current project, to increase the capacity of its various units.

As of September 30, 2023, the company has a robust order book (unexecuted) of $5,229 crore after receiving fresh orders of 2,232 crore in the second quarter of this fiscal year.

At its Switchgears Division facility in Nashik, CG Power would invest around Rs 155 crore to increase the production capacity of instrument transformers and condenser bushings, medium voltage switchgear, and GIS units.

According to a statement from the business, the expansion is being undertaken in light of the expanding market demand.

The company has also planned to expand the manufacturing capacity of large industrial machine (LIM) units at Mandideep, Bhopal, at a capital outlay of Rs 35 crore.

The proposed expansion will increase the capacity of LIM up to 1,728 units per annum from 1,002 units per annum now. The current capacity utilisation is around 98 per cent.

This expansion project, which is being taken up considering the expected increase in future demand for MV Motors, will be implemented over 12 months.