CG Power and Industrial Solutions to Acquire Majority Stake in G.G.Tronics for ₹319.38 Crore

CG Power and Industrial Solutions Limited announced in a stock exchange filing that it has entered into definitive agreements to acquire a 55% stake in G.G.Tronics India Private Limited (GGT) for up to ₹319.38 crore. The acquisition is expected to be completed on or before August 23, 2024.

With over 86 years of history, CG Power has established a strong presence in the Railway Industry, offering a comprehensive portfolio that includes Traction Machines & Systems, Rail Transportation Traction Electronics (complete Railway Propulsion Systems), and Railway Signalling Products (Electro-Mechanical Signalling Products).

G.G.Tronics India Private Limited (GGT), founded in 2003 and headquartered in Bengaluru, specialises in the design, manufacture, supply, and installation of Electronic Safety Embedded Signalling Systems for the Railway Transportation segment. Among its notable products is the Train Collision Avoidance System (TCAS), also known as Automatic Train Protection Systems (IRATPS) or ‘KAVACH.’

GGT is a developmental vendor for ‘KAVACH’ and is in the advanced stages of obtaining approval for its latest version (4.0) with Long-Term Evolution (LTE) compatibility from the Research Designs and Standards Organisation (RDSO), Indian Railways. GGT’s product lineup also includes Single & Multi Section Digital Axle Counters and High Availability Digital Axle Counters, both certified by RDSO and compliant with CENELEC SIL 4 standards.

Additionally, GGT offers comprehensive services for system and software verification and validation for railway signalling products and projects, adhering to the latest CENELEC standards, including EN50126, EN50129, EN50128, EN50159, and EN50125. GGT boasts state-of-the-art facilities for manufacturing, testing, and Research & Development.

With deep domain expertise and a proven track record spanning over two decades, GGT has earned the trust of the Indian Railways, cementing its position as a key player in the Indian Railways Electronic Signalling sector.

This acquisition aligns with CG Power’s strategic intent to expand its Railway product portfolio by diversifying into related or adjacent areas poised for growth. The integration is expected to leverage synergies between the two companies.

CG’s extensive expertise in manufacturing, engineering, and project management, combined with GGT’s specialized knowledge in Railway Transport Safety—particularly in the Train Collision Avoidance System ‘KAVACH’ and embedded systems—will enable CG to actively pursue ‘KAVACH’ and other Rail Safety projects in the Electronic Signalling Sector.

Commenting on this acquisition, the Managing Director of CG Power and Industrial

Solutions Limited, Mr Natarajan Srinivasan, said, “This is a crucial step forward for CG in further consolidating our position in the Railway Industry. It underscores our commitment to advancing our product portfolio with cutting-edge railway safety signalling technologies such as the ‘KAVACH’ Train Collision Avoidance System, as well as innovating further with developments like the Moving Block System for line capacity enhancement, Electronic Interlocking for Indian Railways, and CBTC for metro rail, amongst others.”

He further added, “By integrating GGT’s specialised capabilities, we are poised to deliver enhanced value and reliability to our customers in the Indian Railways sector, reaffirming our commitment to innovation and operational excellence. With a steadfast commitment to Make in India, for the World, we anticipate significant potential for expanding these technologies internationally.”

Mr. N Manjunath, Founder, G.G.Tronics, added, “By partnering with CG, we will be able to leverage their advanced manufacturing and engineering expertise, thereby bolstering our growth, and further strengthening our position in the Railway Transport Safety Signalling sector. This partnership will enable us to expand our geographical footprint, achieve economies of scale, and optimise our supply chain management. These synergies with CG having expertise in Locomotives – Power Electronics, Propulsion Systems, and Electricals & Rolling Stock, and GGT’s prowess in Railway Signalling will drive technological integration through joint R&D efforts and facilitate global market expansion.”

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