CG Power and Industrial Solutions Ltd acquires 55% stake in G G Tronics India Pvt Ltd

CG Power and Industrial Solutions Ltd (CG), a leader in the Electrical Engineering Industry, today has entered into definitive agreements to acquire 55% stake in G.G.Tronics India Private Limited (GGT) for an aggregate consideration of up to Rs. 319.38 crores.

With a legacy spanning over 86 years, CG has established a strong foothold in the Railway Industry, offering a comprehensive portfolio that includes: Traction Machines & Systems, Rail Transportation Traction Electronics (complete Railway Propulsion Systems), and Railway Signalling Products (Electro-Mechanical Signalling Products).

G.G.Tronics India Private Limited (GGT), established in 2003 and headquartered in Bengaluru, specializes in designing, manufacturing, supplying, and installing Electronic Safety Embedded Signalling Systems for the Railway Transportation segment. Among its notable offerings is the Train Collision Avoidance System (TCAS), also referred to as Automatic Train Protection Systems (IRATPS) or 'KAVACH,' for which GGT is a developmental vendor and currently, is in the advanced stage of getting an approval for the latest version (4.0) along with Long-Term Evolution (LTE) compatibility, from the Research Designs and Standards Organisation (RDSO), Indian Railways. GGT's product lineup also includes Single & Multi Section Digital Axle Counters and High Availability Digital Axle Counters, both certified by RDSO and compliant with CENELEC SIL 4 standards. In addition to its diverse product range, GGT provides comprehensive services for system and software verification and validation for railway signalling products and projects. These services adhere to the latest CENELEC standards including EN50126, EN50129, EN50128, EN50159, and EN50125. GGT has stateof-the-art facilities for manufacturing, testing, and Research & Development. With deep domain expertise, proven capabilities, and a track record of over two decades, GGT has earned the trust of the Indian Railways, solidifying its position as a key player in the Indian Railways Electronic Signalling 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 integration is anticipated to leverage synergies between the companies. CG's extensive expertise in manufacturing, engineering, and project management, complemented by GGT's specialized knowledge in Railway Transport Safety, particularly in the Train Collision Avoidance System 'KAVACH,' and embedded systems will enable CG to actively pursue 'KAVACH' and other Rail Safety projects, in the areas of Electronic Signalling Sector through this vehicle.

On the occasion, Mr. Natarajan Srinivasan, Managing Director, CG Power and Industrial Solutions Limited, said, "This is a crucial step forward for CG in further consolidating our position in the Railway Industry. It underscores our commitment to advancing our product portfolio with cutting-edge railway safety signalling technologies such as the 'KAVACH' Train Collision Avoidance System, as well as innovating further with developments like Moving Block System for line capacity enhancement, Electronic Interlocking for Indian Railways, and CBTC for metro rail, amongst others. By integrating GGT's specialized capabilities, we are poised to deliver enhanced value and reliability to our customers in the Indian Railways sector, reaffirming our commitment to innovation and operational excellence. With a steadfast commitment to Make in India, for the World, we anticipate significant potential for expanding these technologies internationally."

Mr. N Manjunath, Founder, G.G.Tronics, speaking for their Board, added, "By partnering with CG, we will be able to leverage their advanced manufacturing and engineering expertise, thereby bolstering our growth, and further strengthening our position in the Railway Transport Safety Signalling sector. This partnership will enable us to expand our geographical footprint, achieve economies of scale, and optimize our supply chain management. These synergies with CG having expertise in Locomotives - Power Electronics, Propulsion Systems, and Electricals & Rolling Stock, and GGT's prowess in Railway Signalling will drive technological integration through joint R&D efforts and facilitate global market expansion."

Shares of CG Power and Industrial Solutions Limited was last trading in BSE at Rs. 676.60 as compared to the previous close of Rs. 689.80. The total number of shares traded during the day was 278716 in over 13431 trades.

The stock hit an intraday high of Rs. 702.85 and intraday low of 644.90. The net turnover during the day was Rs. 187668955.00.

Source : Equity Bulls

Keywords

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