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

Written by: Team Angel OneUpdated on: Mar 12, 2025, 3:06 PM IST
CG Power signs a long-term supply deal with Kinet Railway Solutions, securing a ₹400-450 crore order for Vande Bharat trainsets with a 35-year service contract.
CG Power Secures ₹450 Crore Railway Order For Vande Bharat Parts
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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.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 12, 2025, 3:06 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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