Murugappa Group company CG Power and Industrial Solutions Ltd is accelerating its transformation into a global industrial and technology player, with significant investments in semiconductors, power infrastructure and international expansion.
In a message to shareholders in the company’s Annual Report 2026, CG Power and Industrial Solutions Ltd Chairman Vellayan Subbiah said the company’s entry into semiconductors marks a long-term strategic ambition aimed at building globally competitive capabilities across both chip design and manufacturing.
Semiconductor ambitions gather pace
Subbiah said CG Power’s entry into semiconductors through Axiro in FY25, followed by the launch of CG Semi’s advanced Outsourced Semiconductor Assembly and Test (OSAT) facility in August 2025, represents a major milestone in the company’s diversification strategy.
He said the initiative is aligned with India’s growing semiconductor ecosystem, backed by government programmes such as the India Semiconductor Mission, the Design Linked Incentive (DLI) Scheme and the Research, Development and Innovation Fund (RDIF).
According to him, Axiro has already built a strong semiconductor design foundation with more than 150 front-end technology intellectual properties (IPs) and over 200 chip designs that have been deployed in more than 600 million chips globally. The capabilities are being further strengthened through the company’s investment in EdgeCortix.
The chairman said the OSAT facility is being developed with a planned capacity of up to 14.5 million chips per day, reflecting CG Power’s ambition to become a globally competitive semiconductor player.
“Semiconductors are a long-gestation business that demand patient capital, technological depth and sustained execution. We are approaching this opportunity with a long-term perspective, with the ambition of building globally competitive capabilities that contribute meaningfully to India’s semiconductor journey,” he said.
Positioned for structural growth
Subbiah said the biggest opportunities before the company are structural rather than cyclical.
He pointed to India’s energy transition, railway modernisation, electronics manufacturing growth, expansion of data centres and the country’s increasing role in global manufacturing as long-term demand drivers.
Globally, the proliferation of AI infrastructure, the push for energy efficiency and the diversification of semiconductor supply chains are creating durable opportunities across the company’s businesses.
He said CG Power’s portfolio is well aligned with these themes, with transformers and switchgear supporting grid modernisation, motors and drives enabling energy-efficient industries, rail systems supporting infrastructure upgrades, and semiconductors powering the next generation of technologies.
International business gains momentum
The chairman said FY26 marked a significant step-up in the company’s global growth ambitions.
Export order bookings more than doubled during the year, while the company’s largest-ever order came from overseas, a ₹900 crore contract to supply power transformers for a hyperscale data centre in the United States.
CG Power’s manufacturing operations across India and Europe continue to serve customers in the Americas, Europe, Africa and Asia, while India’s expanding network of free trade agreements is opening up larger export opportunities for industrial and power equipment manufacturers, he added.
Capacity expansion aimed at global opportunity
Subbiah said the company’s transformer manufacturing capacity expansion to around 1,20,000 MVA is designed not just for domestic demand but to serve global markets, where power infrastructure investments are accelerating amid energy transition and growing demand from data centres.