CG Power and Industrial Solutions, a Murugappa group company, has signed a definitive agreement to acquire 55% stake in G.G.Tronics India (GGT) for a consideration of ₹319.38 crore. The acquisition is expected to be completed on or before August 23.
Founded in 2003, GGT specialises in the design, manufacture, supply, and installation of electronic safety embedded signalling systems, including ‘KAVACH,’ for the railway transportation sector.
“This acquisition is in line with CG’s strategic intent to expand its Railway product portfolio by diversifying into closely related or adjacent areas poised for growth,” the company said in a regulatory filing.
CG Power, a nine-decade-old company, already has a strong presence in the railway industry with a portfolio that includes traction machines & systems, rail transportation traction electronics, and railway signalling products.
Natarajan Srinivasan, managing director, CG Power and Industrial Solutions, said, the acquisition is a crucial step forward for CG Power in further consolidating its position in the railway industry.
Meanwhile, CG Power recorded a 19% year-on-year growth in revenue, reaching ₹2,228 crore for the first quarter of the current fiscal. The company also saw a 23% increase in net profit, amounting to ₹241 crore during Q1FY25.