Murugappa group-promoted CG Power and Industrial Solutions is in talks with several stakeholders to design and develop motors for electric vehicles (EVs).
N Srinivasan, MD, CG Power and Industrial Solutions, told analysts during an earnings call that since the company has not shaped anything concrete on the front, it was not in a position to reveal as to what stage they have reached so far.
“We are talking to so many people. First, you have to get the design, develop the prototype, then the prototype has to be approved, then you have to develop the product and after which you have to do testing, then quality and commercial scale. So many steps are there. So, I won’t be able to tell you exactly in what stage we are,” he said.
Srinivasan said the recent capacity expansion in motors is aimed at catering to both the domestic and the overseas markets. “Exports is certainly on the agenda, but the capacity increase has been considered taking into account the overall demand both from domestic and overseas market,” Srinivasan said.
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The board of directors of CG Power and Industrial Solutions has approved a proposal to expand the manufacturing capacity of motors at its plants at Ahmednagar and Goa at a capital outlay of `230 crore.
On a query whether the company would be a sole supplier to its sister concern Tube Investments, which has forayed into electric three-wheelers, he said the company needs to be first ready with its product offerings.
“Secondly, there’s nothing like a sole supplier for Tube Investments. If it makes commercial sense for them, they will buy from us. Similarly, if it makes commercial sense for us, we will sell to them. If it doesn’t make commercial sense, we’ll tell them your price is not working out. So that is how we operate,” he said.
Giving an overview on the revival of CG Power under Murugappa group, Srinivasan said CG is an 80-year-old organisation and except for the problems in the last four years, the company was run efficiently. They had always maintained the leadership position in the respective businesses, notwithstanding the presence of global giants as competitors.
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“If you take motors, then your competitors are Siemens, ABB and then similarly in the power transformer business. The company had extraordinary capabilities and the teams here have done a great job for several years. During the last three to four years, the company got into problem for no fault of the teams at the plants or operation side , but because of something happening in the corporate which had the impact. That is one of the reasons why the company’s recovery has been fast. ” he said.
