CG Power Secures ₹450 Crore Railway Order For Vande Bharat Parts

CG Power and Industrial Solutions Ltd (CG) has signed a long-term supply agreement with Kinet Railway Solutions Limited for the supply and servicing of railway components. The agreement includes propulsion kits, motors, transformers, and other railway products.

As part of this agreement, CG has secured a purchase order worth ₹400-450 crore to supply railway components for 10 Vande Bharat trainsets. Additionally, the contract includes a 35-year service order for continued maintenance and support.

Background and Railway Operations

CG Power has been operating for over 86 years and has a presence in the railway industry through its traction machines, propulsion systems, and railway signalling products. The company has also expanded into the Train Collision Avoidance System (TCAS), known as KAVACH, which focuses on railway safety technology.

Manufacturing Presence

Headquartered in Mumbai, CG Power operates 18 manufacturing plants across India and Sweden. It manufactures a range of traction motors, propulsion systems, and signalling relays for Indian Railways, along with induction motors, drives, transformers, and switchgear for industrial applications. The company has also expanded into consumer appliances, producing fans, pumps, and water heaters, as per their filing.

Financials 

CG Power reported revenues of ₹8,046 crore (USD 964 million) in FY24. The company has approximately 3,113 employees. Since November 2020, CG Power has been a part of the Murugappa Group, which operates businesses across agriculture, engineering, and financial services, with total group revenues of ₹74,200 crore.

At 10:46 AM March 12, 2025, CG Power and Industrial Solutions Ltd share traded a 0.13% up at ₹608.95.

Conclusion

This railway contract further expands CG Power’s role in the railway sector. The 35-year service agreement will help with continued business operations in railway electrification and modernization.

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