CG Power's turnaround: A strategic rescue for India's critical infra, emerging technology sectors
Just a few years ago, CG Power and Industrial Solutions was a cautionary tale in India's corporate landscape. Once a trusted name in industrial manufacturing—power equipment, transformers, and rail systems—the company spiraled into disarray following a 2019 financial scandal that exposed massive irregularities. With liabilities understated and assets overstated by thousands of crores, CG Power teetered on the edge of collapse. This was not merely the story of a failing enterprise; it was a matter of national importance. The potential foreign acquisition of CG Power posed serious concerns for India's critical infrastructure security.
By 2020, CG Power was on the verge of being dismantled. Foreign interest in distressed Indian industrial assets was not uncommon—particularly from Chinese and European players. Industry observers noted keen interest from entities such as China XD Group and Siemens, both eyeing strategic footholds in India's infrastructure and power sectors. CG Power's global presence and technical expertise in transformers and railway electrification made it a prime target for acquisition.
This is where the intervention by
Tube Investments of India (TII)
became transformational—not just for the company, but for the nation. In November 2020, TII acquired a 56.6% stake in CG Power for ₹700 crore. Though not the highest bid in absolute terms, TII's credibility, operational experience, and India-centric revival plan proved decisive. Their acquisition narrative was anchored in rebuilding and safeguarding strategic industrial capabilities, rather than short-term asset extraction.
Under the quiet yet determined leadership of TII's Executive Vice Chairman,
Vellayan Subbiah
, the revival effort began. Subbiah's strategy was deliberate: restore institutional trust, fix the balance sheet, and reinvigorate operational strength with a long-term view.
The financial clean-up was swift. With CG Power burdened by over ₹2,100 crore in debt, TII orchestrated a one-time settlement with 14 banks—₹1,100 crore was written off, ₹200 crore restructured, and ₹650 crore infused as fresh equity. Property monetization efforts filled the gap. By 2022, CG Power had become debt-free—an extraordinary pivot from near insolvency.
Operationally, the turnaround was just as striking. The motors and railway businesses achieved record sales, and the transformer division revived with a swelling order book—₹3,686 crore initially, growing to ₹7,054 crore by Q1 of FY 2024-25. Profitability followed, and so did market validation, with CG Power's stock surging over 90% in 2024.
However, what truly redefined CG Power's trajectory was its strategic pivot to future technologies.
In March 2024, CG Power announced its entry into the semiconductor sector, partnering with Japan's Renesas Electronics and Thailand's Stars Microelectronics to establish an OSAT (Outsourced Semiconductor Assembly and Test) facility in Gujarat. With a ₹7,600 crore investment and a 92% controlling stake in the JV, CG Power signaled that it was no longer just an industrial legacy player—it was becoming a serious participant in the high-tech manufacturing ecosystem critical for India's ambitions of technological self-reliance.
The momentum continued. In October 2024, CG Power acquired the radio frequency (RF) components business of Renesas Electronics America for $36 million, bringing in crucial intellectual property, engineering talent, and design capabilities. These moves firmly embedded CG Power within the broader semiconductor value chain, a strategic sector India is aggressively nurturing to reduce external dependencies in electronics and advanced manufacturing.
Today, CG Power's transformation is more than an inspiring corporate turnaround—it is a case study in tech sovereignty, industrial resilience, and strategic national interest.
Had TII not intervened, CG Power could have easily become a satellite entity within a foreign conglomerate's Indian portfolio, risking domestic control over key infrastructure systems and future technologies. Such a scenario would have had deep, lasting implications for supply chain autonomy, technology access, and national security.
Instead, CG Power stands rejuvenated—playing a critical role not just in India's infrastructure rebuilding, but in its emerging tech economy. Its journey underscores the power of timely domestic capital intervention and strategic vision in shaping India's future industrial and technological landscape.
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