CG Power to Set Up New Transformer Plant in Madhya Pradesh
CG Power and Industrial Solutions Limited has been allotted 45.13 acres of land in Sehore, Madhya Pradesh, by the M.P. Industrial Development Corporation Limited (MPIDC) on a 99-year lease. The company will use this land to establish a greenfield transformer manufacturing plant.
The company’s board had approved development of this plant in January 2025.
Investment and Production Capacity for New Plant
CG Power will be investing Rs. 712 crore for the development of this new transformer manufacturing plant. Once operational, this plant will have annual transformer production capacity of 45,000 MegaVolt-Ampere (MVA). The Sehore plant will churn out transformers in the 220 KV to 765 KV voltage range.
CG Power to Strengthen Presence in Central India
With this new plant, CG Power targets to strengthen its operational footprint in central India. This addition will raise the company’s total annual power transformer manufacturing capacity to over 89,000 MVA. Currently, CG Power operates two transformer units in Madhya Pradesh, which include a 35,000 MVA capacity plant in Malanpur and a 9,900 MVA capacity plant in Bhopal.
Indian Transformer Market Growth Driven by RE, Grid Expansion
India’s transformer market is witnessing strong and steep growth, mostly fueled by increasing number of Renewable Energy (RE) installations. Apart from this, rising electricity demand, and respective grid modernization requirements call for greater transformer production and deployment. It is well known that the Indian Government has set the target to integrate 500 GW of RE projects with the grid by FY30. Further, Central Electricity Authority’s (CEA) National Electricity Plan (NEP) targets laying of about additional 191,474 Circuit Km (cKm) of transmission lines along with deployment of another 1,274 GigaVolt-Ampere (GVA) of transformation capacity by FY32.
As per a May 2025 report by PowerLine India’s transformer market was estimated at USD 5.1 billion in 2024, and in FY25 alone India added transformation capacity of 86,433 MVA. This capacity addition is 22.20% higher than the FY24 figure of 70,728 MVA. Therefore, deployment of transformers in the country is experiencing a rapid rise. Speaking of absolute numbers, India’s deployed transformation capacity as of March 2025 was about 1,304 GVA for 220KV-765 KV voltage level, which if compared to deployment as of 2018-19 represents Compound Annual Growth Rate (CAGR) of 5.82% since.
Therefore, CG Power’s move to step up its transformer manufacturing can be seen as a natural and strategic decision by the company.
About CG Power and Industrial Solutions: CG Power and Industrial Solutions Limited, an Indian multinational company engaged in design and manufacturing products related to power generation, transmission, and distribution & Rail Transportation. The company was founded in 1937 with its headquarters in Mumbai.
