CG Power Share Price Rises 1% as Subsidiary Wins Rs 500-600 Crore Railway Order

G.G.Tronics Secures Prestigious KAVACH Order

G.G.Tronics India Private Limited (GGT), a subsidiary of CG Power and Industrial Solutions Limited, has been awarded a significant order for the KAVACH system by Chittaranjan Locomotive Works, West Bengal, under the Government of India. This order includes the supply, installation, testing, and commissioning of on-board KAVACH equipment as per RDSO specifications. The project also encompasses wiring, cabling, and maintenance services for 11 years, with an estimated value between ₹500-600 crore. The execution timeframe for this order is one year.

Revolutionizing Railway Safety

GGT, with over two decades of expertise, specialises in electronic safety embedded signalling systems for railways. Its flagship product, the Train Collision Avoidance System (TCAS), also known as KAVACH, has positioned GGT as a trusted partner for Indian Railways. Along with TCAS, GGT’s offerings include high-reliability digital axle counters certified to stringent CENELEC SIL 4 standards.

With state-of-the-art facilities and compliance with global standards such as EN50126 and EN50129, GGT continues to pioneer railway safety and signalling solutions.

CG Power: Engineering Excellence

As the parent company, CG Power and Industrial Solutions Limited is a leader in the electrical engineering industry, manufacturing a wide range of products such as traction motors, propulsion systems, transformers, and switch gears. It has a strong footprint with nine manufacturing facilities across India and one in Sweden. The company achieved consolidated revenue of ₹8,046 crores in FY24, reinforcing its dominance in the sector.

Since joining the Murugappa Group in November 2020, CG Power has expanded its portfolio to include consumer appliances, further showcasing its innovative approach.

Market Response: Share Price Rises

Following this announcement, CG Power’s share price witnessed a 1% increase on November 27, 2024, reflecting investor confidence in the company’s growth trajectory.

What’s Next for CG Power?

With the KAVACH order and its emphasis on innovation and sustainability, CG Power is well-poised to maintain its leadership in the industry while continuing to strengthen its market position.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.