CG Power and Industrial Solutions Limited, a major player in India's electrical engineering sector, has taken a significant step forward in its expansion strategy with the official allotment of 45.13 acres of land in Village Jahangirpura, Tehsil Sehore, District Sehore, Madhya Pradesh, for the purpose of setting up its greenfield transformer manufacturing facility.

This update was shared by the company through an official filing dated 2nd August 2025, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was made to both the BSE (Scrip Code: 500093) and NSE (Scrip ID: CGPOWER).

Land Lease and Project Scope

According to the disclosure, the Madhya Pradesh Industrial Development Corporation Limited (MPIDC) has issued a letter of allotment, handing over the land for the proposed greenfield project. The land parcel, measuring approximately 45.13 acres, has been allotted on a long-term lease of 99 years, which is typical for industrial infrastructure development in India.

The land will be used to set up a state-of-the-art transformer manufacturing facility with a capacity of 45,000 MVA. This aligns with CG Power’s previously declared intention of expanding its core manufacturing footprint in Western India, as outlined in the Board Meeting held on 28th January 2025 (Ref. COSEC/244/2024-25).

Strategic Location and Impact

The choice of Sehore in Madhya Pradesh is strategically significant due to its proximity to both raw material sources and target customer markets. The location provides access to a growing industrial ecosystem, government-backed infrastructure, and logistical support.

This facility, once operational, is expected to:

• Increase CG Power’s manufacturing capabilities in the transformer segment.

• Strengthen the supply chain for power transmission infrastructure across India.

• Create direct and indirect employment opportunities in the region.

• Promote localised manufacturing in line with the Government of India’s “Make in India” initiative.

Regulatory Compliance and Board Approval

This development stems from a decision made by CG Power’s Board during its January 2025 meeting, which formally approved the establishment of a new transformer plant in Western India as part of the company’s greenfield expansion plan. The lease confirmation from MPIDC now validates the company's ability to move forward with project implementation.

The company is expected to begin groundwork activities soon, including infrastructure development, machinery procurement, and manpower hiring. Although no specific project timelines have been disclosed in the latest filing, land allocation is considered a major milestone in any greenfield project.

Official Confirmation

The disclosure was signed by Mr. Sanjay Kumar Chowdhary, Company Secretary and Compliance Officer, confirming the receipt of the letter of allotment and the finalisation of land arrangements for the project.

The company’s letter to the stock exchanges stated:

“MPIDC has today handed over the letter of allotment for granting on lease for a period of 99 years approximately 45.13 acres of undeveloped land… for setting up the said project.”

CG Power has also requested the stock exchanges to take the information on record and disseminate it publicly in accordance with SEBI disclosure norms.

Outlook and Industry Implications

The expansion reflects CG Power’s ambition to remain at the forefront of India’s rapidly modernising power infrastructure sector. With the growing need for robust and efficient power distribution networks, especially in urbanising and industrialising regions, transformer manufacturing capacity has become critical.

The upcoming plant is expected to feature modern automated production lines, digital quality control mechanisms, and potentially even export capabilities, allowing CG Power to cater to both domestic and global markets.

This development also positions CG Power well to tap into upcoming government and private sector contracts related to power distribution, smart grids, and renewable energy integration.

Conclusion

The allotment of land in Sehore, Madhya Pradesh by MPIDC marks a major forward step for CG Power’s greenfield transformer manufacturing initiative. With land in place and regulatory formalities cleared, the company is poised to accelerate the setup of its 45,000 MVA capacity facility, reinforcing its leadership in the power equipment manufacturing domain.

As India’s energy sector evolves to meet both domestic demand and climate goals, CG Power’s investments like this will be key enablers in building future-ready electrical infrastructure.

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