CG Power and Industrial Solutions, part of Chennai-based diversified business conglomerate Murugappa Group, is looking at entering the electric vehicle (EV) mobility space, which the company believes is a priority area. The company has started consultations with some companies to explore the possibility of developing motors for EVs.
N Srinivasan, MD, CG Power and Industrial Solutions, said at an analysts’ earnings call: “On electric vehicle mobility, we are talking to some existing players to see how we can develop motors for EVs. We are talking to a lot of people. We are also doing some development work.”
CG Power’s parent company, Tube Investments of India (TII), has been working on launching electric three-wheelers and e-tractors. TII had also announced plans to form a subsidiary to carry on the proposed electric three-wheeler venture and other EV-related projects.
Srinivasan said CG is capable of manufacturing motors for the requirement of EVs, whether it for a group or non-group company. “We are working on that, and this is one area, as of now, where we have some capability that we can probably leverage to meet market requirements,” he said, ruling out any initiative to enter the battery segment.
On export opportunities, he said the company has products suited for exports such as transformers, switchgears and motors. “So, as far as motors are concerned, our exports are not very significant because there is a huge amount of domestic demand, which we have to meet. We have increased our market share to 35-36% this year, so going forward, we need to first expand our capacity. After meeting the domestic market demand, we will have to focus on exports. So, exports are definitely on the agenda, but it will take a period of time,” he said.
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The company is evaluating various options to increase capacity through the normal course, by way of de-bottlenecking and expansion. “On the capex front, we have not firmed up anything and are still on the drawing board. Certainly, we are looking at increasing capacity in motors as well as transformers,” he said.
CG Power had got a development order for the Vande Bharat train, in which the company would be doing the development partly on its own and partly through associated partners. “This will be just a development order, as of now. Going forward, when we establish our credentials, we will be ready and fit for participating in the tenders after two years. Then, we could be in a position to fight against all the competitors that are major players,” Ranjan Singh, executive VP (railway business), CG Power and Industrial Solutions, said.
