About
CG Power & Industrial Solutions Ltd
CG Power and Industrial Solutions Limited (CG), which is the erstwhile Crompton Greaves Limited after spinning off its consumer business, is a pure B2B company spanning two major businesses. These are the Power Systems business unit, involving power transmission and distribution equipment and system solutions that cover many differentiated products and services from ultra-high voltage (UHV), high voltage (HV), medium voltage (MV) and low voltage (LV) and the Industrial Systems business unit, consisting of rotating machines (motors and alternators) across a wide spectrum of power and ratings, automated AC, DC and variable frequency drives and control systems as well as traction electronics and machines, signalling and coach products and integrated solutions for railway transportation.
Crompton Greaves Ltd, a part of Avantha Group was established in the year April 28th, 1937 in Mumbai as a private sector under the name of Crompton Parkinson Works Ltd. The Company is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. As on 31 March 2019, the company had 3 Indian subsidiaries, 23 foreign subsidiaries and 1 associate companies.
CG is a part of the Avantha Group, led by the Group's Founder & Chairman Mr Gautam Thapar.
In the year 1947, with the dawn of the independence of India, the company was taken over by Lala Karamchand Thapar, an eminent Indian industrialist who formed the Thapar Group. In the year 1966, Greaves Cotton & Crompton Parkinson Ltd was amalgamated with the company and the name was changed to Crompton Greaves Ltd.
In the year 1975, the company made technical collaboration agreement with Hitachi Ltd, Japan for the manufacture of moulded case circuit breakers. In the year 1978, they entered into various technical collaboration agreements with several renowned manufacturers from USA, UK, Europe and Japan. In the year 1981, Kerala Electric Lamp Works Ltd (formerly Toshiba Anand Lamps Ltd) became a subsidiary company.
In the year 1986, the company jointly with the Punjab state Industrial Development Corporation Ltd promoted a company under the name Punjab Power Generation Machines Ltd for the manufacture of hydro turbines upto 20 MW in Punjab. Also, the company in association with Economic Development Corporation of Goa, Daman & Diu Ltd promoted a company under the name of Goa Electricals and Fans Ltd for the manufacture of ceiling fans in Goa.
In the year 1987, the company commissioned an up-to-date plant for the manufacture of vacuum interrupters and manufacture of industrial electronic items, signaling systems at Aurangabad and Nasik respectively. Also, they commissioned an instrument relays project at Pithampur. In the year 1988, the company developed and introduced supervisory control and data acquisition and programmable logical controllers. Also, the company under joint venture was set up and commissioned two plants for the manufacture of telematics in Goa and television receivers in Pithampur.
In the year 1990, the company commissioned the rural telecommunication unit at Bangalore, the transformers unit at Malanpur, M.P and vacuum fluid purifier plant at Aurangabad. Also, the company in association with Teltec of Denmark promoted a joint venture company under the name of CG-Teltec Ltd for the manufacture of radio communication equipment. Also, Kerala Electric Lamp Works Ltd (KELW) was amalgamated with the company. In the year 1992, the R&D unit of the company developed new products likes DC/AC current sensor and mixed dielectric insulation system for 220 KV coupling capacitors. They set up a joint venture project for manufacture of electric meters at Gurgaon. Also, they commissioned a plant for manufacture of lithium batteries in Goa.
In the year 1994, the company submitted their bid to DOT for provision of cellular services in seven circles in association with Millicons of Luxembarg. Also, they promoted CG Communication Pvt Ltd to provide cellular mobile telephone services in the telecom services in India. In the year 1995, the company set up a modern transformer factory with the latest manufacturing equipment at Bhopal. Also, Hind Condensor Ltd, Goa Telematics Ltd (GTL) and Northern Digital Exchanges Ltd (NODE) were amalgamated with the company.
In the year 1996, the company was restructured in four main business group viz. Power system, Industrial system, consumer products and Digital to ensure enhanced focus and effectiveness. The Indocom Industries Ltd, a 100% subsidiary of the company and Lumino Lamps Ltd were amalgamated with the company. In the year 1997, Kersons Manufacturing Company of India Ltd (Kersons) and Goa Electricals and Fans Ltd (GEFL) were amalgamated with the company. In the year 1998, the company formed an alliance with Link Middle East Ltd (LMEL) for the manufacture the medium voltage vacuum switchgear at Dubai,
In the year 1999, the company signed an MoU with Israel based Tadiran Telecommunications Ltd for marketing and servicing Tadiran's Coral range of telecommunication product in the Indian subcontinent. Also, they entered into a technical collaboration with Allied Signal Inc. for manufacturing Amorphous Metal Transformers (AMT). In the year 2000, the informatics division of the company made a tie up with Remedy Corporation for consultation, implementation and training of eCRM and eBusiness infrastructure solutions in India. The company signed an agreement with French company Schneider Electric for selling its low-tension control gear business located in Nasik in Maharashtra. Also they entered into an agreement for sale of its Low Tension Control Gear division located at Satpur, Nashik to Schneider Electric India Ltd for approximately Rs 76 crore.
In the year 2001, CG-Digital, a business unit of the company launched a new range of digital and KTS/EPABX systems to suit varying needs of communication. In a bid to reduce its manufacturing costs, LM Thapar Group Company of Crompton Greaves has begun importing electrical components from Chinese manufacturers for their consumer products division. In the year 2002, the company divested their shareholding of 38% in CG Newage Electrical Ltd to Cummins India Ltd with the consideration of Rs 220.50 per share.
In May 2005, the company acquired the Belgium-based Pauwels Group, a company internationally known for their transformer manufacturing and service capabilities. Since 2005, the company embarked upon an ambitious globalization strategy, growing both organically and inorganically, drawing into their fold leading international companies such as Pauwels, Ganz, Microsol, Sonomatra, MSE and PTS. Consequent to this globalisation, the company now enjoys manufacturing bases in Belgium, Canada, Hungary, Indonesia, Ireland, France, UK and US, in addition to more than twenty manufacturing locations in India.
In the year 2006, the company acquired 59% shareholding in Malanpur Captive Power Ltd (MCPL). During the year 2006-07, the company acquired Ganz Transelektro Villamossagi Zrt and its associate company, Transverticum Kft in Hungary. Also, the company's Indian Power Systems business opened 9 new International markets for their products. The HT motors division of the company succeeded in extending the 11 kV range of HT motors to 1,750 kW. They also obtained and executed several new orders for refineries and cement plants. The company set up a captive glass shell manufacturing unit and a new line for FTL at Baroda.
In May 30, 2008, the company acquired France based Societe Nouvelle de Maintenance Transformateurs (Sonomatra). In September 12, 2008, the company acquired USA based MSE Power Systems Inc and its subsidiary company - MSE West LLC (MSE Group).
In August 2009, the company acquired 81,60,000 equity shares comprising 51 % share capital of Brook Crompton Greaves Ltd (BCGL), a joint venture between the company and BTR (European Holding) BV. BCGL thus became a 100% subsidiary of the company. In March 29, 2010, the company acquired Power Technology Solutions Ltd (PTS), a UK-based high voltage electrical engineering company to provide integrated solutions, services and products.
During the year 2010-11, the company established a branch office at Poland. To consolidate their market share in the Middle East market, the company entered into a strategic alliance with the EIC Group, from Saudi Arabia, for establishment of 2 joint venture companies - Saudi Power Transformers Company Ltd (SPTC) and CG Power Systems of Saudi Arabia Ltd (PS SA). SPTC will strengthen the company's manufacturing presence of medium power transformers in Saudi Arabia, whilst PS SA will enhance the company's EPC footprint in Saudi Arabia and other Middle East countries. The company holds a 49% equity stake in SPTC and a 51% equity stake in PS SA, through its overseas subsidiaries, CG Power Systems Belgium N.V. and CG Holdings Belgium N.V. respectively.
In April 29, 2010, the company concluded an arrangement for acquiring three businesses of Nelco Ltd namely, traction electronics, SCADA and industrial drives for a value of approximately Rs 92 crore. In July 6, 2010, the company completed the amalgamation of their wholly-owned subsidiary, Brook Crompton Greaves Ltd with them.
In November 2010, the company established CG-ZIV Power Automation Solutions Ltd (CGZIV), a joint venture company in India with ZIV Aplicaciones y Tecnologia, S.L. (ZIV), for the manufacture of Substation Automation systems for substations in EHV and UHV range. In January 28, 2011, the company approved the amalgamation of CG Capital and Investments Ltd (CG Capital), the company's wholly-owned subsidiary with the company.
In May 2011, the company was awarded a contract for acting as the distribution franchisee of Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for power distribution in the Jalgaon Circle (Maharashtra) for a period of ten years. In May 19, 2011, the company acquired Emotron of Sweden for an enterprise value of Rs 57.8 million. In May 27, 2011, they acquired QEI Inc of USA, a provider of automation systems and products for power transmission and distribution, for an enterprise value of USD 30 million.At its 28 June 2013 Board Meeting, the Crompton Greaves Board had authorized a buy-back of the company's equity shares aggregating to upto 10% of the total paid up equity capital and free reserves of the company as on 31 March 2012 (which was the latest audited Balance Sheet approved by the shareholders at the time). The Maximum Buy-back Size was Rs. 265.70 crore and the Minimum Buy-back Size was Rs.132.85 crore (50% of the maximum Buy-back Size). In terms of the above, buy-back commenced on 16 July 2013, and as on 15 January 2014, i.e., the date of closure of buy-back offer, the company bought-back 14,745,394 equity shares, at an aggregate amount of Rs.133.56 crore, representing 50.27% of the Maximum Buy-back Size. All the shares bought back have been extinguished. The average price of the shares bought-back worked out to Rs.90.37 per share.
During the year ended 31 March 2014, Crompton Greaves launched its state-of-the-art smart grid facility at the Global Village, near Bengaluru, for full-fledged manufacturing of smart grid devices. Equipment produced in this facility will offer numerical solutions to Indian utilities and industries in the transmission and distribution (T&D) segment and provide improvements to the electricity grid to make it more efficient and reliable. In addition, FY 2014 saw the company's power transformer plant in Indonesia completing its capacity increase to 10,000 MVA with a new state-of-the-art winding workshop in place. It now has the proven capability to manufacture 500 kV transformers. FY 2014 saw the range expansion and global launch of IE3 range of motors up to 7.5 kW and orders for IE2 motors launched last year.
In FY 2014, Crompton Greaves Consumer Products business unit undertook actions to expand its reach to cover end consumer sales points; rationalize channels networks; deploy lean manufacturing initiatives; and increase product offerings in premium segments as well as in knowledge based intelligent products. Over 11,150 new retailers and 194 distributors were added to strengthen channel transformation; and nine new branches were opened in FY2014. The business also forayed its presence in the modern retail segment.
The Board of Directors of Crompton Greaves at their meeting held on 29 January 2014, approved the amalgamation of CG-ZIV Power Automation Solutions Limited (CG-ZIV) and CG Energy Management Limited (CGEM), wholly owned subsidiaries of the company, with the company, for simplification of the shareholding structure and operational synergies. A Scheme of Amalgamation filed with the High Court of Bombay was duly approved by the High Court and the said Scheme became effective on 25 March 2015, with 1 April 2014, as the appointed date. The Amalgamation of CG -ZIV and CGEM with the cCompany has resulted in an increase in the Authorised Share Capital of the company by Rs. 46.60 crore. Being wholly owned subsidiaries of the company, the entire paid-up share capital of CG-ZIV and CGEM would be cancelled and both the companies would stand dissolved without winding up.
The Board of Directors of Crompton Greaves (CG) at its meeting held on 3 March 2015 approved a Scheme of Arrangement (Scheme) for the demerger, under which, the Consumer Products Business of the company will be transferred into, Crompton Greaves Consumer Electricals Limited (CGCEL), which, upon demerger, shall be listed on the Stock Exchanges, subject to receiving regulatory and statutory approvals. The Scheme approved by the Board, proposes that upon sanction of the Scheme by the High Court of Bombay, the shareholders of the company will be allotted one equity share of CGCEL for every equity share held in the company. Crompton Greaves has received an intimation from Avantha Holdings Limited, one of the entities of the promoter group of the company, addressed to the Stock Exchanges announcing its intention to divest its 34.37% proposed shareholding in CGCEL to be allotted consequent to the sanction of the Scheme of Demerger, to one or more special purpose vehicles managed by Advent International Corporation, USA and a wholly owned subsidiary of Temasek Holdings (Private) Limited for an aggregate consideration of Rs 2000 crore, subject to requisite consents and approvals.
During the year ended 31 March 2015, the T3 facility at Mandideep of Crompton Greaves' Power Transformers (PT) business unit manufactured and despatched the 175th unit of 765 kV class products - aggregating over 40,000 MVA. It is the only plant in India to do so. During the year under review, the T3 plant produced and despatched the 190th unit of locomotive transformers to the Chittaranjan Locomotive Works (CLW). It crossed the milestone of producing over 100,000 MVA since its inception in 1995. It entered the export market by executing orders worth Rs. 15 crore. More importantly, the T3 facility booked record export orders of Rs. 163 crore.
The T3 facility secured major orders from (i) the National Thermal Power Corporation (NTPC) for 765 kV transformers and reactors; (ii) the Power Grid Corporation of India Limited (PGCIL) for 765 kV and 400 kV reactors; (iii) ISOLUX (Mexico) for 125 MVA/400 kV transformers and 400 kV reactors; (iv) CLW for locomotive transformers; and (v) Bechtel (USA) for 242 kV generator transformers and unit auxiliary transformers.
The T3 facility won an order from NTPC for the design, manufacture and supply of a Generator Step-Up (GSU) transformers for its largest capacity, 800 MW super-critical thermal power plant at Darlipali in Odisha. The order comprises 315 MVA 765kV single phase GSU transformers, 85 MVA 765 kV tie' transformers and 80 MVAR shunt reactors. CG won this order against stiff international competition; and it has reaffirmed CG's leadership in India's UHV segment. The T3 facility also bagged a significant order from PGCIL for the supply of 80 MVAR 765kV shunt reactors.
The T3 facility obtained 18% productivity improvement in 765 kV transformers; 22% improvement in 765 kV reactors; and 16% improvement in locomotive transformers.
The T1 plant at Kanjur Marg (Mumbai) won order for highest rating of generator transformers (396 MVA, 174 MVA) from L&T Power for a project in Bangladesh. The plant also won an order for trackside transformers for Indian Railways - a first for T1. The plant won first time orders from the Tamil Nadu Transmission Corporation. The plant won first export order for Laos for three 100 MVA/230 kV transformers, acquired several new customers across Africa, including Rwanda, Ivory Coast, Guinea, Mozambique, Tanzania, Ethiopia and South Africa; and gained new market entry in Mexico for the supply of transformers and shunt reactors to the Comision Federal de Electricidad.
The plant at Bogor, Indonesia (called PTID) completed its state-of-the-art manufacturing facility with environmentally controlled winding bays and new core stacking tables. It is the sole supplier of 500 kV transformers in Indonesia. During FY2015, the plant received a significant order from PT Perusahan Listrik Negara (PT PLN), the state electricity corporation of Indonesia, for 21 units of 60 MVA transformers - a transfer order' that was earlier awarded to a competitor. In addition, it delivered a 324 MVA strategic spare transformer to PT PLN - the largest 3-phase transformer produced by PTID. The plant secured two major orders from PLN under international competitive bidding with World Bank funding for 36 150 kV transformers and 36 transformers bays.
The medium voltage power transformer plant at Washington (Missouri, US), called PTUS secured a record order intake for supply of transformers for renewable energy projects. It also received large orders from NextEra Energy Resources Inc. from Florida, We Energies of Wisconsin, MEC Electric and the Omaha Public Power District. The plant successfully designed, built, tested and shipped its first two 230 kV/825 kV basic insulation level (BIL) transformer. It also successfully built and shipped dual low voltage regulation unit with individual load tap changers.
The power transformer plant at Winnipeg (Canada), called PTCA, completed a systematic labour force restructuring in May 2014 and headcount reduced.
At Crompton Greaves' power transformer plant at Tapioszele (Hungary), or PTHU three new winding machines and a new winding bay were added; three complete coil core assembly platforms were installed; and the refurbishment of the vapour phase drying (VPD) oven and the hot air vacuum oven were completed.
During the year under review, Crompton Greaves won a significant new contract win for the design, construction and delivery of 16 mobile substations for the Ministry of Electricity in Iraq. It is a collaborative effort. The 31.5 MVA transformers in each mobile substation will be produced in PT Hungary; the auxiliary/earthing units will be manufactured in the DT factory in Belgium; the control and protection equipment will be provided by CG's Automation arm, ZIV; and integration and assembly work for the project will be carried out in Belgium.Crompton Greaves Switchgears business unit successfully developed and type tested 800 kV current transformer (CT) in accordance with the specifications of PGCIL. It also developed and type tested 800 kV condenser bushings as per PGCIL specifications. The business unit received PGCIL's product approval for, and manufactured mixed dielectric synthetic oil capacitor voltage transformers (CVTs) up to 800 kV. The business unit successfully developed and type tested 420 kV, 3000A (six core) CT as per PGCIL specifications. This received product approval and was supplied to PGCIL's Sagardighi project in West Bengal.
The Switchgears business unit developed, type tested and supplied 300 kV transient response (TPX, TPY) CTs to PLN Indonesia. The business unit received a prestigious order for 92 units of 420 kV CTs from Bharat Heavy Electricals Limited (BHEL) for MPPTCL
The Switchgears business unit developed a new economically designed 245 kV CT with mild steel tanks for the Madhya Pradesh Power Transmission Company Limited (MPPTCL). The business unit supplied 75 such CTs, and received new orders for another 117 units.
The Switchgears business unit secured significant export orders of CTs, CVTs and voltage transformers (VTs) from Laos, Indonesia, Vietnam, Ethiopia, Democratic Republic of Congo, Uganda, Senegal, Algeria and Guatemala, often after overcoming tough competition from major international players. Regarding MV switchgears, FY2015 saw its first export sale of the 36 kV GIS to Nigeria, and the first significant Indian order from the Tamil Nadu Generation and Distribution Company (TANGEDCO). Also secured product approval of the 36 kV GIS from Oman. MV switchgears continued to witness repeat sale of higher rating (12kV, 50kA) vacuum circuit breakers (VCBs). A marquee customer for the indoor 12kV, 44kA VCB switchboard was the Nuclear Power Corporation of India. Moreover, new indoor VCBs were successfully type-tested for the export market, ranging from 12 kV, 40 kA, 2000 Amps to 36 kV, 25 kA, 2000 Amps.
FY 2015 saw MV switchgears produce its highest ever volume of indoor and outdoor VCBs produced - a total of 11,512 units, which represented a growth of 43% over the previous year. Crompton Greaves manufactured the highest number of 72.5 kV breakers in the year -1,028 units during FY 2015.
During the year under review, some of Crompton Greaves' Distribution Transformers (DT) plants succeeded in designing, testing and manufacturing new products. Among these were: (i) the production and certification of ATEX transformers of different sizes and ratings for KBR Inc. for the oil and gas industry; (ii) the development of 10 MVA double-stock transformer for off-shore wind turbine applications; (iii) offering and production of first series of transformers according to European ECO-directive; and (iv) increasingly producing and supplying transformers from the DT plant in Washington, Missouri, for the oil and gas sector and heavy industries in the US as well as renewables in Latin America.
In June 2014, Crompton Greaves, along with two other consortium partners, Fabricom and Iemants, was selected by Van Oord for its offshore wind project, Gemini, in the Netherlands.
Crompton Greaves' Automation business unit bagged a deal from PGCIL to supply six substation automation systems (SAS) in Jharkhand, India. The business unit won a major contract with Spanish multinational electric utility company Iberdrola to supply over 1 million ZIV single smart meters in a year. The Automation business unit was awarded a significant contract for supply of 750,000 smart meters from the Spanish utility Gas Natural Fenosa (GNF), making it one of GNF's main smart meter suppliers for the next two years.
Crompton Greaves was selected by Electricit Rseau Distribution France (eRDF), the public electricity distribution company managing 95% of the network in continental France, as one of the six suppliers to manufacture the first three million of its new generation Linky smart meters. This contract is a very significant achievement for CG, which is building a competitive strategy in the development of smart grid solutions under the ZIV brand, based on its own know-how and a unique mix of knowledge in protection, control, communications and metering technologies.
Crompton Greaves secured a prestigious contract from the Saudi Electricity Company (SEC), the largest power utility company in the Middle East serving approximately five million customers in the Kingdom of Saudi Arabia (KSA), to supply ZIV three phase smart meters. It bagged the largest lot for the supply of the first batch of industrial smart meters after months of close dedication from its application and sales team to understand the customer's needs - which enabled the company to offer a customised and competitive product.
In 2014-15, Crompton Greaves' Industrial Systems business unit crossed the Rs. 100 crore exports mark. The business unit secured the first IP65 motor order from the Saline Water Conversion Corporation, Saudi Arabia, for five 1.9 MW MV motors. The rotating machine facility at Hungary secured its largest order from Fives FCB of France, a specialist in the construction of cement plants, for 11 large slip ring MV motors to be supplied to Algeria Cement. Crompton Greaves obtained the first order from the Japanese global OEM, Torishima Pumps, for pump test motors of 500 KW for Indonesia. Crompton Greaves got the first development order of a three-phase diesel-electric multiple unit (DEMU) propulsion system from the Indian Coach Factory (ICF), Chennai.
Crompton Greaves' Lighting And Luminaires division launched a total of 207 stock keeping units (SKUs) during FY 2015, mostly in LED based fixtures. Exclusive LED experience centres were inaugurated at three locations. Continuous development and cost optimisation led to the company bagging 5 million LED lamp and LED street lights orders under the government's drive on energy efficiency. The company won the order for around 25,000 units of LED street lights in locations like Agartala, Jhalawar, Vishakhapatnam and Alleppey. The company won the first major LED luminaire export order to Oman, comprising mainly high wattage high-bay luminaires. The company signed up with Bata for lighting up 300 of their stores across India. The company also signed up with major corporate houses and banks for the supply of conventional and LED products for all their locations in India, including the use retrofit solutions.
Crompton Greaves' Fans division developed additional capacity of 0.74 million units/year at Kundaim. The Baddi unit's Fan production increased by 32% and crossed the 2 million mark. In FY 2015, 26 new models were introduced in the areas of (i) energy efficient ceiling fans, (ii) premium range ceiling fans, and (iii) table, pedestal and wall range fans. In FY 2015, Crompton Greaves' Appliances division launched 34 new products, involving new models of air coolers, mixer grinders, rice cookers and voltage stabilizers.
With effect from 1 October 2015, Crompton Greaves Limited (CGL) completed the demerger of its erstwhile Consumer Products business into a separate company, namely Crompton Greaves Consumer Electricals Limited (CGCEL). Each shareholder of CGL was allotted one equity share of CGCEL for every equity share of CGL held as on the record date of 16 March 2016. Thus, CGL became a pure B2B Company from 1 October 2015, the appointed date of the demerger.
During the financial year ended 31 March 2016, Crompton Greaves (CG) sold the Power Assets held by its subsidiary CG Power Systems Canada Inc, thereby exiting from the Power business in Canada. The company has divested its entire stake in the Joint Venture CG Lucy Switchgear Limited (presently Lucy Electric India Private Limited) to W Lucy & Co Limited, UK-the Joint Venture Partner, while retaining its distribution and supply arrangements with Lucy Electric India Private Limited.
During FY 2016, CG entered into binding transactions agreement with First Reserve for sale of its transmission and distribution (T&D) businesses at Indonesia, Hungary, Ireland, France, North America and Belgium at an enterprise value of Euro 115 million. First Reserve is a leading global private equity and infrastructure investor exclusively focused on energy. Moreover, the company closed down its systems business at Brazil and is in the process of winding up its systems business at North America and the United Kingdom.
During the year, the Distribution Franchisee Agreement (DFA) of CG with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for power distribution at Jalgaon in Maharashtra was terminated by MSEDCL exercising its step- in rights consequent to certain unresolved disputes.
During the year under review, CG's R&D activities continued to focus on development of improved energy efficient and reliable products. Power transformers focused on research in cost competitiveness, oil tightness and validation of hot spot calculation.
The R&D division developed CSA certified single phase motors upto 5HP 4P and 6P.
During the year under review, the T3 manufacturing facility at Mandideep of CG's Power Transformers (PT) business unit retained leadership position in 800 kV class with PGCIL by securing orders for 10,303 MVA, representing a market share of 25% by MVA and 24% by value. The plant bagged orders for 63 large locomotive transformers, orders for two 225 MVA, 230 kV transformers from L&T for a project that PGCIL is executing in Bangladesh and export orders for a 130 MVA, 220 kV transformer from Chile, and another for 126 MVA, 200 kV from the USA. The T3 plant designed and developed its first 220 kV Delta transformer (60 MVA, 220 / 23 kV) for Chile. It designed, developed and supplied the plant's largest generator transformer (396 MVA, 242 / 18 kV, 30) to the USA. The unit designed and developed a new locomotive transformer (7.7775 MVA, 25 kV) for Indian Railways.
The T1 plant at Kanjur Marg (Mumbai) of CG's Power Transformers (PT) business unit won several domestic and export orders during the year under review. The unit secured the largest power transformer export order till date for 1050 MVA, 500 kV auto transformers from Tenaga Nacional Berhad (TNB), Malaysia. It also received first export orders from: (i) Abu Dhabi for an alumina plant, through Bechtel, and (ii) L&T, Sharjah, for a 400 kV power project in Malawi, Africa. The T1 plant successfully short circuit tested: (i) a 250 MVA, 400 kV generator transformer at KEMA, Netherland for an NTPC project, and (ii) a 50 MVA, 66 kV transformer for the Delhi Metro Rail Corporation. The unit manufactured three 500 MVA transformers for PGCIL for its prestigious Kunta solar power project in Andhra Pradesh and delivered these in four months. The plant developed a cost effective design series for 400 kV shunt reactors.
During the year under review, CG's Switchgears division secured first orders from (i) ANDE, Paraguay, for supplying 36 kV indoor VCB panels; (ii) Indonesia for a newly developed, mid-mounted 24 kV indoor VCB panel; (iii) Vietnam for 24 kV RMUs; (iv) West Bengal State Electricity Distribution Company Limited for 36 kV indoor VCB panels; (v) Goa Electricity Department for 12 kV VCB panels with numerical protection relays incorporating the IEC 61850 protocol; (vi) Northern Power Distribution Company of Telengana Limited for numerical protection relays. The Switchgears division maintained leadership position in Indian market for vacuum interrupters and vacuum contactors with over 40% market share.
During the year under review, CG's Distribution Transformers (DT) product line located at T2 at Malanpur, near Gwalior secured several domestic orders for EPC projects, solar power projects including evacuation and from companies operating in the metals and mining sectors. It also secured export orders from NGM Company Limited in Kenya and for a major solar power project in the Philippines. It introduced two new products: (i) an inverter duty 12 pulse transformer of 3.2 MVA with foil winding, and (ii) a four-inverter feed 4.25 MVA transformer, also with foil winding.
CG's Industrial Systems business unit bagged orders for 11 MV motors for exports to Lafarge plants in Philippines, Bangladesh, Uganda and Vietnam. The business unit secured the largest rating order for India for 3.7 MW, 18-pole, 11 kV motors for use as circulating water (CW) pumps from Kirloskar Brothers Limited for LANCO's thermal power project at Ennore, Tamil Nadu. It also won another large rating order for a 5.25 MW, 16-pole, 11 kV CW pump, to replace a Chinese motor, for Vedanta's Talwandi Saboo power plant in Punjab. The Industrial Systems business unit secured a large order from Wilo Mather & Platt Pumps for 36 MV motors for water projects under the Narmada Valley Development Authority, Madhya Pradesh. It also bagged a single large order for 36 MV motors and 120 IEC standard LV motors from Jindal Machinery, Raipur.
During the year under review, CG received range approval from the Petroleum and Explosives Safety Organisation (PESO) for flame proof MV motors in the 132 kW to 1050 kW range. CG is the only motor manufacturer in India to get this certification. During the year under review, CG inaugurated the second LT motor manufacturing facility at Goa and achieved the highest production volume of 30,000 motors per month. The rotating machine facility at Tapioszele, Hungary, produced for a Russian client two large synchronous HPP generator - a first in the 2200 mm frame size of 11.3 MW, 24-pole, 6.6 kV, 60 Hz, each weighing 93.5 metric tons. It also produced 12 motors (pump drives) for the Rosatom nuclear power plants of 1250 mm frame size, 5 MW, 6-pole, 10 kV, with double cage rotor motors.
The drives business successfully commissioned a large test bed project at Al-Fanar Jubail, Saudi Arabia to test motors up to 18 MW, 13.8 kV. CG also successfully executed two sets of IGBT power converters based on a prototype by the Research Design and Standards Organisation (RDSO) of Indian Railways, which now qualifies CG to participate in large quantity tenders for such equipment. After successfully executing three-phase traction motors, the Diesel Locomotive Works (DLW), Varanasi, awarded an order for 128 such units.
CG also bagged a large Indian Railways order for 27 new, energy efficient IGBT Power Converters from the Chittaranjan Locomotive Works (CLW). The drives and automation business in Sweden launched its Flow Drive' water management solution and the VS10 / 30 micro drive of the 0.3 kW to 7.5 kW range. It also bagged major orders from Yara Marine and E.ON Energy, one of the largest electricity and gas suppliers in the UK. The drives and automation business in India and Sweden acquired 39 new customers and 19 new approvals. Some of the new customers were: Kone, Gamesa, Faively Transport, Nord ITC, Sandvik, Puzzolona, Anupam Cranes and Hercules Crane.
In CG's automation business line, ZIV received some significant orders from Spanish utilities such as Ibedrola and Gas Natural Fenosa (GNF) as well as a prestigious order to deliver 45,000 units of three-phase G1 smart meters for Linky in France.
During the year ended 31 March 2017, the Share Purchase Agreement (SPA) for sale of CG's Power Businesses in Europe, North America and Indonesia was terminated due to certain conditions precedent, the fulfillment of which was beyond the reasonable control of the parties to the SPA. The company continues to explore alternative geography / product wise options for sale of its international power businesses excluding Indonesia while continuing with strategic initiatives for improving the overall operational efficiency of its international power businesses.
During the year under review, the company completed sale of its Automation business comprising of ZIV Aplicaciones y Tecnologia S.L, its subsidiaries and Automation businesses in UK, Ireland, France and India at an Enterprise Value of Euro 120 Million. The sale is part of the company's strategy to focus on its core operations in Power and Industrial Systems businesses in their respective markets. The Automation business sale has significantly contributed to the reduction of company's international debts.
The company's branch office in Poland i.e. Crompton Greaves Ltd SA and overseas step-down subsidiaries CG Power Systems Brazil Ltda and Microsol Limited were liquidated on 8 December 2016, 21 December 2016 and 26 April 2017, respectively.
Pursuant to the Scheme of Arrangement between the company and Crompton Greaves Consumer Electricals Limited (CGCEL) as sanctioned by the High Court of Bombay on 20 November 2015, inter-alia, the trademarks associated with the company's erstwhile consumer products business viz Crompton' and Crompton Greaves' were transferred to CGCEL. Since the company, consequent to demerger of its erstwhile consumer products business, operates in a fully integrated B2B segment comprising of Power Transmission, Distribution and Industrial Businesses, the registered trademark CG' associated with the B2B business has been retained by the company. As a consequence of the above and pursuant to approval of the shareholders of the company vide Special Resolution dated 25 January 2017 and the Central Government / Registrar of Companies, Mumbai on 27 February 2017, the company changed its name from Crompton Greaves Limited' to CG Power and Industrial Solutions Limited' effective 27 February 2017. The new name CG Power and Industrial Solutions Limited' appropriately represents and reflects the business in which the company is presently engaged and the existing registered trademark/logo used by the company.
During the year under review, the CG's R&D activities continued to focus on development of indigenous and energy efficient products. The Power Transformers Division developed 4.5MVA 33 / 4*380 (4LV IN ONE core coil assembly) inverter duty for solar application and amorphous transformers. The Switchgear Division indigenously designed and developed composite insulators to cater to the changing requirements of utilities for switchgear products and to reduce dependence on imported materials. The Switchgear Division also developed Arc assist double motion interrupters that will result in approximately 40% reduction of mechanism energy requirement, algorithms for controlled switching of reactor & transformer and CG's Arista GIS which will achieve the requirements of global market for the ratings 36kV, 31.5kA, 2500A, 50 / 60Hz.
The Industrial Systems business developed new range of 480Vac stacked drives' (including AFE) from 250kW to 2MW in smaller footprint, AFE drives, next generation control platform, TSA range of Normal Duty softstarters with integrated bypass upto 1100A and next generation IP2X, IP54 (and possibly IP65) variable speed drives during the year. During FY 2017, CG registered designs of Compact Series 160C frame Alternator, 450 frame Alternator, Solid Yoke DC Motor-AFS / AUS315, Amplydine for T90 Stabilizer-BEL Chennai, Solid Yoke DC Motor in frame AUS / AFS250 (Locomotive) and Flameproof Brake Motors E90-160.
In FY 2017, CG's Power Systems business unit's T3 manufacturing facility at Mandideep achieved record net sales of almost Rs 442 crore. Keeping in view growing orders from Indian Railways, T3 created a dedicated facility for manufacturing railway transformers, and its new 30MVA 132kV transformer produced in this unit for the Delhi Metro Rail Corporation (DMRC) was successfully short circuit tested at the Central Power Research Institute (CPRI).
The T1 facility at Kanjur Marg, Mumbai, had several successes during the year. The manufacturing unit designed and developed a 50MVA, 66kV transformer with ester oil for Siemens, which was supplied for the Delhi metro (DMRC). It also designed and developed a single-phase, 33.3MVA, 400kV coupling transformers for PGCIL's Statcom Project at the NP Kunta Ultra-Mega Solar Park in the district of Ananthapur in Andhra Pradesh. The T1 facility successfully short circuit tested i. a 250 MVA, 400kV generator transformer at KEMA (Netherlands) for NTPC Ramagundam, and ii. a 50MVA, 220kV transformer at the CPRI for the DMRC. It also successfully commissioned 11 sites in FY2017 for PGCIL as a part of its RT2 Project.
In FY 2017, CG's Indonesian operations achieved highest ever order intake for power transformers of US$142 million. The Indonesian operations bagged the largest ever open book order from PLN of US$95 million, of 114 power transformers aggregating 7400MVA. The Indonesian operations achieved a breakthrough in the power generation segment with an order intake of US$8 million and also bagged orders worth US$17 million for mobile sub-stations.
CG's T2 facility at Malanpur which manufactures Distribution Transformers (DT) turned around in FY 2017 with an EBIDTA of 7.3% to sales. It achieved highest ever order input of Rs 274 crore, and received its largest ever single order of Rs 32.5 crore from Greenco (Hyderabad) for 100 units of 4.5MVA, 33kV for solar energy applications.
In FY 2017, CG's Switchgears division indigenously developed and commissioned capacitor voltage transformers (CVTs) and surge arresters for the 1,200kV experimental sub-station set up by NTPC at Bina (Uttar Pradesh). The Switchgears division set up and commissioned 108 current transformers (CTs) at a single location, namely the Pallavadi (Tamil Nadu) substation, for the Tamil Nadu Transmission Corporation (TANTRANSCO). It also manufactured and commissioned 765kV gas circuit breakers for PGCIL at Jabalpur (Madhya Pradesh) and Champa (Chhattisgarh).
The Switchgears division produced, according to global standards, 36kV medium voltage GIS switchgears for renewable energy the first of its kind to be manufactured in India. These are specially designed to fit at the base of wind turbines, and have been approved by Gamesa of Spain. The Switchgears division created mid-mounted vacuum circuit breaker (VCB) panels for exports-and sold these to Paraguay, Indonesia, Sierra Leone and in Europe. It also received the first GIS export orders from Vietnam and Ukraine. The division manufactured 72kV dead tank breakers, for which orders were secured from Latin America and the Caribbean.
The Switchgears division designed and manufactured a 60 unit panel switchboard of 7.2kV and 44kA for the Steel Authority of India Limited's Durgapur Steel Plant with MECON (Ranchi) as the consultant. The Switchgears division commissioned 72kV to 145kV GIS switchgears for the Himachal Pradesh SEB (at Shimla), the Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) at Allahabad and Ghaziabad, and the Haryana Vidyut Prasan Nigam Limited (HVPNL) at Gurugram. The Switchgears division developed and secured certification for a 245kV GIS switchgear, and received the first order for five bays from UPPTCL.
In FY 2017, revenue from low tension (LT) motors (LVRM) of CG's Industrial Systems business unit crossed the Rs 1,000 crore mark. It produced 2,250kVA large alternator, a first for CG and for India. CG manufactured large AC motors in India of a frame-size of 500mm.
For the railways business, FY2017 saw CG achieving its highest ever order input of almost Rs 625 crore, representing a growth of 66% over the previous year. It also recorded its highest ever sales of almost Rs 436 crore, a 22% growth over the last year. FY 2017 also saw CG securing 100% of the tender quantity for an order worth Rs 82 crore from DMW and another for Rs 89 crore from the Integral Coach Factory in Chennai. The business also received three orders of above Rs 40 crore each from CLW. CG was the first company in India to develop and integrate the under slung' propulsion system for Indian Railway's 2 x 350HP diesel electric tower car and it was the second company in India to develop and integrate the complete propulsion system for 1600HP AC-AC diesel electric multiple unit.
The company successfully completed divestment of its power business in USA comprising its overseas step down subsidiary-CG Power USA Inc. on 31 July 2017 to WEG Electric Corp for an enterprise value of US$31 million. WEG Electric Corp is a nominee of WEG S.A., a Brazilian publicly listed company. Consequently, CG Power USA Inc. ceased to be a wholly owned step-down subsidiary of the company and has been renamed as WEG Transformers USA Inc. Further with respect to the company's business in Hungary, CG Electric Systems Hungary Zrt. (ESHU), the company's step-down subsidiary and CG International BV, the company's subsidiary have inter-alia entered into a Business Transfer Agreement and Share Sale and Purchase Agreement with Ganz Villamossagi Zrt. and Alester Holdings Limited (the Purchasers) for sale of Assets (excluding switchgear business) and Shares of ESHU respectively for an enterprise value of Euro 38 Million with expected completion by 31 March 2018 subject to requisite approvals. Upon request of the Purchasers, the completion date has been extended pending the receipt of the requisite approvals. Thereafter, the necessary documents for effecting transfer of all the shares of ESHU to the Purchasers have been executed. Considering certain conditions subsequent to be performed between the parties, the shares have been held in escrow and will be handed over to the Purchasers upon completion of such conditions. Consequent to this, ESHU will cease to be a step-down subsidiary of the company.
During the year ended 31 March 2018, CG Power Systems Belgium NV (PSBE), divested its 49% stake in its Joint Venture in Saudi Arabia, Saudi Power Transformer Co. Limited. CG Power Solutions Saudi Arabia Co. in which CG Holdings Belgium NV, a step down overseas subsidiary of the company, holds 51% equity shareholding shall be liquidated upon completion of its open orders. During the year the solutions businesses in US and UK and the switchgear business in Hungary have been phased out. The above divestments are in line with CG Power and Industrial Solutions' strategy to exit from identified geographies/products of its international businesses and focus its synergies on the retained ones including India and Indonesia with the objective of improving the overall operational efficiency, reducing debt and for enhancing shareholders' value.
During the year under review, the company's R&D activities continued to focus on development of indigenous and energy efficient products. One of the significant achievements was the indigenous development and manufacture of 6 MW 6.6 kV vertical motor for Nuclear Power Corporation of India Limited (NPCIL) for use in its nuclear reactor. At present, the Company is the sole Indian manufacturer to develop this motor for NPCIL. It has undergone and passed inspection by NPCIL at every stage of development. The Switchgear Division indigenously designed and developed resin impregnated paper (RIP) bushings. RIP bushings are of a dry type without oil, encapsulated with composite insulators.
In line with the company's objective of offering customer centric and smart products, the Company developed a Digital Surge Counter to monitor the health of zinc oxide surge arresters. The product shakes hand with digital technology to measure vital parameters such as total leakage current and total surge counts.
There was also the development of 170 kV and 362 kV Externally Gapped Line Arresters which protect transmission lines from lightning and, thus, improve performance and reliability. The design is such that it can deal with insulation coordination in worst conditions.
The Low Tension Motors division of the company developed the entire range of IE3 motors (80-355 frame, 0.37 kW to 250 kW) with an enclosure capable of withstanding the pressure of explosive gas and prevent transfer of flames. This division also developed under slung mounted 500 kVA DG sets for Indian Railways in order to utilize the coach onboard space for transporting goods as additional space.
During the quarter ended 31 March 2018, the Company examined the recoverability of certain overdue/non-recoverable assets and, after this analysis, has written these off. These have been accounted for as exceptional items amounting to Rs 443 crore (net) which also include provision for litigation claims.
The company's Power Transformers (PT) facility at T1 (Kanjur Marg, Mumbai) had several successes in FY 2018 which includes successful short circuit testing at KEMA (The Netherlands) of a 315 MVA/400 kV transformer produced for the Uttar Pradesh Power Transmission Company Limited (UPPTCL). The plant commissioned India's first static synchronous compensator (STATCOM) transformer for PGCIL-through an order from L&T and Siemens. In the course of FY 2018, four such STATCOM transformers were commissioned; eight were supplied; and another four were successfully tested. The T1 plant designed and developed a 25 MVAr, 225 kV, three-phase variable shunt reactorfor SENELEC, in Senegal. The order is for five such reactors.
The company's Power Transformers facility at T3 facility at Mandideep achieved its highest ever dispatch of over 100 transformers in FY 2018.
During the year under review, CG's Switchgears division installed 1 MW rooftop solar panels with associated instrumentation. During the year under review, CG became the first Indian enterprise to get an approval from PGCIL for 765 kV bushings. Two such bushings were commissioned in November 2017; and a first order was received for 12 more of these bushings. The Switchgears division was the first to develop and produce a 765 kV current transformer (CT) with indigenous technology. The division developed resin impregnated paper (RIP) bushings upto 145 kV. It produced technologically enhanced EHV current transformers such as 420 kV CTs with composite insulators in line with PGCIL's new specifications; and 420 kV CTs with cast tank for improved aesthetics as well as better performance. The division retrofitted older hydraulic circuit breakers at PGCIL's Dadri sub-station with 400 kV gas circuit breakers.
The Switchgears division designed, built and successfully supplied feeder remote terminal units (FRTUs) to Torrent Power for Agra and Surat. FRTUs are intelligent electronic devices designed for use in feeder automation. With this, CG has entered the area of distribution automation which has large upside potential in the world of smart grids.
The division secured the first order from Indian Railways for 13 bays of 72 kV GIS, which opens up this product to the railways and the Metro markets and also got approval from the Research Design and Standards Organisation (RDSO) of the Indian Railways for 25 kV, 2,000 A single pole porcelain clad outdoor vacuum circuit breaker.
The Switchgears division produced cost effective designs for 36 kV, 26.3 kA 630 A/1,250 A single bus GIS; and for 36 kV/40.5 kV, 31.5 kA, 2,500 A AIS vacuum circuit breaker panel, enhanced reliability by manufacturing high cantilever 800 kV lightning arrestors, as well as 245 kV arc assisted gang operated gas circuit breakers and produced new ranges of 145 kV and 245 kV GIS; and 420 kV, 2,500 A condenser bushings as well as EHV current transformers with a composite insulator.
The Gas Insulated Switchgear (GIS) unit Developed new and unique designs for 245 kV GIS orders from Andritz Hydro (Vietnam), Odessa Energo (Ukraine) and Torrent Power (Surat), created a new market for GIS in West Bengal by securing orders from the West Bengal State Electric Transmission Company Limited (WBSETCL) and came up with a new application that linked a bank of medium voltage GIS with appropriate supervisory control and data acquisition (SCADA) panels for Maharashtra State Electricity Distribution Company Limited (MSEDCL) and the Haryana Vidyut Pariyojana Nigam Limited (HVPNL).
During the year under review, revenue from motors of CG's Industrial Systems Business Unit crossed Rs 1,500 crore mark. In FY 2018, Energy Efficiency Services Limited (EESL), an energy services company of the Government of India to facilitate energy efficient projects, put out its largest ever tender worth approximately Rs 215 crore for energy efficient LT motors. CG not only offered bids for all the ranges in the tender, but also won 53% of the quantity (63,500 units) and 49% (R 107 crore) of the tender value. The Industrial Systems Business Unit tested and successfully dispatched a vertical primary coolant pump HT motor of 6 MW 6.6 kV for NPCIL, Rajasthan. This is a primary coolant pump motor fitted inside the nuclear reactor dome, and is estimated to have a life of 40 years.
The business unit produced and type-tested for construction industry applications (i) liquid cooled motors; (ii) line start permanent magnet; (LSPM) motors that operate at a fixed synchronous speed irrespective of the load; and (iii) gearless traction motors for elevators and lifts. The business unit introduced motors at the new IE4 efficiency level, and produced 8-pole motors in the IE2-IE3 range. It also produced drive mounted smart and intelligent motors. The business unit launched IE4 AC motors-both induction and permanent magnet-of frame size varying from 80 mm to 225 mm for industrial applications. CG was the first Indian manufacturer to produce flameproof (FLP) motors with a frame size of 400 mm. In a space of 45 days, the Industrial Systems Business Unit developed and supplied underslung 500 kVA alternators for the Indian Railways.
CG was the first Indian manufacturer to produce water-cooled LT motors with 25% to 30% enhanced power output. Expanded the range of DC motors to a frame size of 355 mm. CG was the first company in India to manufacture FLP brake motors, which has a large market thanks to import substitution possibilities. The business unit also developed a 160 KW motor for electric buses, which is under validation by the manufacturer.
In the FHP category, the business launched (i) 15' cooler fan motors suitable for 89 mm, 410 mm and 126 mm fans; (ii) pressure die cast aluminium (PDCA) motors across 10 ratings, from 0.12 kW to 3.7 kW; (iii) mild steel sheet body motors from 0.18 kW to 3.7 kW for exports to North and South America; (iv) high torque brushless DC (BLDC) motors of up to 300 rpm for European markets; (v) 500 W and 700 W motors for WILO pumps, which is an import substitute; and (vi) 500 W, 3,000 rpm BLDC blower motor for Indian Railways.
The business unit prototyped electric traction motors for propulsion of electrical vehicles. It secured a test order for four 160 kW/215 kW, four-pole, pad mounted, water cooled, speed sensor fitted motors for use in an electric bus with a capacity for 26 seating and 21 standing passengers.
For the railways business, FY 2018 saw CG achieving its highest ever order input of over Rs 917 crore, or a growth of 47% over the previous year. It also recorded its highest ever sales of almost R 623 crore, representing a 43% growth over the last year. CG received the largest ever single order of 60 sets of AC-AC propulsion system worth Rs 111 crore from the Chittaranjan Locomotive Works (CLW), which represented a 21% share of the total order. It also secured the highest order from CLW and the Diesel Locomotive Works (DLW at Varanasi) for 582 three-phase traction motors valued at Rs 96.3 crore. In addition, it received the largest single order of 89 underslung motors for diesel electric tower cars (DETCs) worth Rs 141.7 crore and the highest order from CLW and DLW for 151 loco transformers worth Rs116.4 crore. In June 2018, CG bagged another order of Rs 319 crore for underslung electrics for DETCs.
During the year 2019, CG Power & Industrial Solutions Middle East FZCO was incorporated as a wholly owned step-down subsidiary of the Company in UAE. In October 2019, CG Goa LTM unit at Colvale commissioned its state-of-the-art facility for impregnation and baking of windings.
During the year 2020, CG International BV has divested its entire shareholding in CG Service Systems France SAS (SEFR), along with its liabilities, for a net consideration of _30,000 to AK Group France, through a Share Purchase Agreement and upon completion of the divestment, SEFR has ceased to be a subsidiary of the Company with effect from 20 July 2020.
The Company launched indigenously developed 40.5kV SF6 Gas Circuit Breaker during FY' 21. It further developed 12kV Ring Main Unit (RMU) - Arista-S for Smart Distribution application to strengthen the Power Distribution Networks in Utilities for reliability and continuity of power supply. The Company re-launched Fast Moving Electrical Goods (FMEG) like domestic and agricultural Pumps and industrial and domestic Exhaust Fans during 2021.
CG's Commercial Motors Division, Goa launched a new array of Ceiling, Table & Pedestal Fans in 2021-22. The Company launched SF6 Gas 145kV GIS Surge Arrester and Partial Discharge Sensor Suitable for Gas Insulated Switchgear; introduced three new varieties of Capacitor Voltage Transformers (CVTs) to product basket to enhance the customer reach for wider applications and launched new design of Current Transformer (CT).
CG Power & Industrial Solutions Ltd
Chairman Speech
Dear shareholders,
Over the last few years, I believe that we have successfully overcome
the phase of addressing legacy issues. From grappling with severe financial constraints
and mounting debts, we have transformed into a debt-free entity. Our progress is
exemplified by our ability to not only meet the needs of our employees and vendors but
also fund our future capital expenditure through internal accruals. We have overcome
existential challenges and achieved remarkable growth in both revenue and profitability
for the second consecutive year.
The resurgence, within just nine quarters, in CG's performance
signifies the strength, determination, prudence and governance of both the Murugappa
Group's Tube Investments and CG. I take great satisfaction in these initial results, and I
wholeheartedly thank all stakeholders, including our Board, Management, Staff, Customers,
and Suppliers for their contribution.
We now stand at the cusp of a new era. We look towards the future with
renewed vigour and confidence as the efforts that have propelled our recent success have
also laid a solid foundation for a promising future.
The external environment continues to be supportive, with a healthy
flow of enquiries and orders in both our operating segments - Industrial Systems and Power
Systems. The Government segment's demand is expected to increase during the next capital
expenditure cycle, while the softening of commodity prices and gradual easing of inflation
bode well for the future.
In line with our future growth strategy, we are initiating the
implementation of three principal pillars: (1) expansion of capacity, (2) enhanced focus
on exports, and (3) accelerated technological advancements. We believe that these pillars
are complementary and will fuel the next phase of our growth.
The capacity expansion pillar aims not only to debottleneck and
modernize existing facilities but also to add new capacity. Plans have been drawn up to
substantially expand the capacity across Ahmednagar, Goa, Bhopal and Malanpur plants.
These projects would involve an aggregate outlay of around ' 400 Crore over the next two
years.
For the second pillar, we are developing a detailed strategy that lays
out the specific geographies, defines the product offerings, and determines the go-to-
market strategy. We are confident that we can increase the revenue contribution from
exports from 5% to 20% over the next 4-5 years.
The third pillar is focused on accelerated technological advancement.
Our robust
R&D mechanism has kept us technologically relevant over the years
and has actively worked on future products & technologies. We continue to strengthen
our R&D efforts and explore collaborative partnerships to augment our internal
efforts.
I am pleased to announce that CG has already made its first dividend
pay-out since the recent change in ownership. I express my gratitude for your continued
trust & patronage and invite you to partner with us in co-creating a more diverse,
global, and competitive CG.
Thank you
Warm regards,
Vellayan Subbiah
Chairman
CG Power & Industrial Solutions Ltd
Company History
CG Power and Industrial Solutions Limited (CG), which is the erstwhile Crompton Greaves Limited after spinning off its consumer business, is a pure B2B company spanning two major businesses. These are the Power Systems business unit, involving power transmission and distribution equipment and system solutions that cover many differentiated products and services from ultra-high voltage (UHV), high voltage (HV), medium voltage (MV) and low voltage (LV) and the Industrial Systems business unit, consisting of rotating machines (motors and alternators) across a wide spectrum of power and ratings, automated AC, DC and variable frequency drives and control systems as well as traction electronics and machines, signalling and coach products and integrated solutions for railway transportation.
Crompton Greaves Ltd, a part of Avantha Group was established in the year April 28th, 1937 in Mumbai as a private sector under the name of Crompton Parkinson Works Ltd. The Company is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. As on 31 March 2019, the company had 3 Indian subsidiaries, 23 foreign subsidiaries and 1 associate companies.
CG is a part of the Avantha Group, led by the Group's Founder & Chairman Mr Gautam Thapar.
In the year 1947, with the dawn of the independence of India, the company was taken over by Lala Karamchand Thapar, an eminent Indian industrialist who formed the Thapar Group. In the year 1966, Greaves Cotton & Crompton Parkinson Ltd was amalgamated with the company and the name was changed to Crompton Greaves Ltd.
In the year 1975, the company made technical collaboration agreement with Hitachi Ltd, Japan for the manufacture of moulded case circuit breakers. In the year 1978, they entered into various technical collaboration agreements with several renowned manufacturers from USA, UK, Europe and Japan. In the year 1981, Kerala Electric Lamp Works Ltd (formerly Toshiba Anand Lamps Ltd) became a subsidiary company.
In the year 1986, the company jointly with the Punjab state Industrial Development Corporation Ltd promoted a company under the name Punjab Power Generation Machines Ltd for the manufacture of hydro turbines upto 20 MW in Punjab. Also, the company in association with Economic Development Corporation of Goa, Daman & Diu Ltd promoted a company under the name of Goa Electricals and Fans Ltd for the manufacture of ceiling fans in Goa.
In the year 1987, the company commissioned an up-to-date plant for the manufacture of vacuum interrupters and manufacture of industrial electronic items, signaling systems at Aurangabad and Nasik respectively. Also, they commissioned an instrument relays project at Pithampur. In the year 1988, the company developed and introduced supervisory control and data acquisition and programmable logical controllers. Also, the company under joint venture was set up and commissioned two plants for the manufacture of telematics in Goa and television receivers in Pithampur.
In the year 1990, the company commissioned the rural telecommunication unit at Bangalore, the transformers unit at Malanpur, M.P and vacuum fluid purifier plant at Aurangabad. Also, the company in association with Teltec of Denmark promoted a joint venture company under the name of CG-Teltec Ltd for the manufacture of radio communication equipment. Also, Kerala Electric Lamp Works Ltd (KELW) was amalgamated with the company. In the year 1992, the R&D unit of the company developed new products likes DC/AC current sensor and mixed dielectric insulation system for 220 KV coupling capacitors. They set up a joint venture project for manufacture of electric meters at Gurgaon. Also, they commissioned a plant for manufacture of lithium batteries in Goa.
In the year 1994, the company submitted their bid to DOT for provision of cellular services in seven circles in association with Millicons of Luxembarg. Also, they promoted CG Communication Pvt Ltd to provide cellular mobile telephone services in the telecom services in India. In the year 1995, the company set up a modern transformer factory with the latest manufacturing equipment at Bhopal. Also, Hind Condensor Ltd, Goa Telematics Ltd (GTL) and Northern Digital Exchanges Ltd (NODE) were amalgamated with the company.
In the year 1996, the company was restructured in four main business group viz. Power system, Industrial system, consumer products and Digital to ensure enhanced focus and effectiveness. The Indocom Industries Ltd, a 100% subsidiary of the company and Lumino Lamps Ltd were amalgamated with the company. In the year 1997, Kersons Manufacturing Company of India Ltd (Kersons) and Goa Electricals and Fans Ltd (GEFL) were amalgamated with the company. In the year 1998, the company formed an alliance with Link Middle East Ltd (LMEL) for the manufacture the medium voltage vacuum switchgear at Dubai,
In the year 1999, the company signed an MoU with Israel based Tadiran Telecommunications Ltd for marketing and servicing Tadiran's Coral range of telecommunication product in the Indian subcontinent. Also, they entered into a technical collaboration with Allied Signal Inc. for manufacturing Amorphous Metal Transformers (AMT). In the year 2000, the informatics division of the company made a tie up with Remedy Corporation for consultation, implementation and training of eCRM and eBusiness infrastructure solutions in India. The company signed an agreement with French company Schneider Electric for selling its low-tension control gear business located in Nasik in Maharashtra. Also they entered into an agreement for sale of its Low Tension Control Gear division located at Satpur, Nashik to Schneider Electric India Ltd for approximately Rs 76 crore.
In the year 2001, CG-Digital, a business unit of the company launched a new range of digital and KTS/EPABX systems to suit varying needs of communication. In a bid to reduce its manufacturing costs, LM Thapar Group Company of Crompton Greaves has begun importing electrical components from Chinese manufacturers for their consumer products division. In the year 2002, the company divested their shareholding of 38% in CG Newage Electrical Ltd to Cummins India Ltd with the consideration of Rs 220.50 per share.
In May 2005, the company acquired the Belgium-based Pauwels Group, a company internationally known for their transformer manufacturing and service capabilities. Since 2005, the company embarked upon an ambitious globalization strategy, growing both organically and inorganically, drawing into their fold leading international companies such as Pauwels, Ganz, Microsol, Sonomatra, MSE and PTS. Consequent to this globalisation, the company now enjoys manufacturing bases in Belgium, Canada, Hungary, Indonesia, Ireland, France, UK and US, in addition to more than twenty manufacturing locations in India.
In the year 2006, the company acquired 59% shareholding in Malanpur Captive Power Ltd (MCPL). During the year 2006-07, the company acquired Ganz Transelektro Villamossagi Zrt and its associate company, Transverticum Kft in Hungary. Also, the company's Indian Power Systems business opened 9 new International markets for their products. The HT motors division of the company succeeded in extending the 11 kV range of HT motors to 1,750 kW. They also obtained and executed several new orders for refineries and cement plants. The company set up a captive glass shell manufacturing unit and a new line for FTL at Baroda.
In May 30, 2008, the company acquired France based Societe Nouvelle de Maintenance Transformateurs (Sonomatra). In September 12, 2008, the company acquired USA based MSE Power Systems Inc and its subsidiary company - MSE West LLC (MSE Group).
In August 2009, the company acquired 81,60,000 equity shares comprising 51 % share capital of Brook Crompton Greaves Ltd (BCGL), a joint venture between the company and BTR (European Holding) BV. BCGL thus became a 100% subsidiary of the company. In March 29, 2010, the company acquired Power Technology Solutions Ltd (PTS), a UK-based high voltage electrical engineering company to provide integrated solutions, services and products.
During the year 2010-11, the company established a branch office at Poland. To consolidate their market share in the Middle East market, the company entered into a strategic alliance with the EIC Group, from Saudi Arabia, for establishment of 2 joint venture companies - Saudi Power Transformers Company Ltd (SPTC) and CG Power Systems of Saudi Arabia Ltd (PS SA). SPTC will strengthen the company's manufacturing presence of medium power transformers in Saudi Arabia, whilst PS SA will enhance the company's EPC footprint in Saudi Arabia and other Middle East countries. The company holds a 49% equity stake in SPTC and a 51% equity stake in PS SA, through its overseas subsidiaries, CG Power Systems Belgium N.V. and CG Holdings Belgium N.V. respectively.
In April 29, 2010, the company concluded an arrangement for acquiring three businesses of Nelco Ltd namely, traction electronics, SCADA and industrial drives for a value of approximately Rs 92 crore. In July 6, 2010, the company completed the amalgamation of their wholly-owned subsidiary, Brook Crompton Greaves Ltd with them.
In November 2010, the company established CG-ZIV Power Automation Solutions Ltd (CGZIV), a joint venture company in India with ZIV Aplicaciones y Tecnologia, S.L. (ZIV), for the manufacture of Substation Automation systems for substations in EHV and UHV range. In January 28, 2011, the company approved the amalgamation of CG Capital and Investments Ltd (CG Capital), the company's wholly-owned subsidiary with the company.
In May 2011, the company was awarded a contract for acting as the distribution franchisee of Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for power distribution in the Jalgaon Circle (Maharashtra) for a period of ten years. In May 19, 2011, the company acquired Emotron of Sweden for an enterprise value of Rs 57.8 million. In May 27, 2011, they acquired QEI Inc of USA, a provider of automation systems and products for power transmission and distribution, for an enterprise value of USD 30 million.At its 28 June 2013 Board Meeting, the Crompton Greaves Board had authorized a buy-back of the company's equity shares aggregating to upto 10% of the total paid up equity capital and free reserves of the company as on 31 March 2012 (which was the latest audited Balance Sheet approved by the shareholders at the time). The Maximum Buy-back Size was Rs. 265.70 crore and the Minimum Buy-back Size was Rs.132.85 crore (50% of the maximum Buy-back Size). In terms of the above, buy-back commenced on 16 July 2013, and as on 15 January 2014, i.e., the date of closure of buy-back offer, the company bought-back 14,745,394 equity shares, at an aggregate amount of Rs.133.56 crore, representing 50.27% of the Maximum Buy-back Size. All the shares bought back have been extinguished. The average price of the shares bought-back worked out to Rs.90.37 per share.
During the year ended 31 March 2014, Crompton Greaves launched its state-of-the-art smart grid facility at the Global Village, near Bengaluru, for full-fledged manufacturing of smart grid devices. Equipment produced in this facility will offer numerical solutions to Indian utilities and industries in the transmission and distribution (T&D) segment and provide improvements to the electricity grid to make it more efficient and reliable. In addition, FY 2014 saw the company's power transformer plant in Indonesia completing its capacity increase to 10,000 MVA with a new state-of-the-art winding workshop in place. It now has the proven capability to manufacture 500 kV transformers. FY 2014 saw the range expansion and global launch of IE3 range of motors up to 7.5 kW and orders for IE2 motors launched last year.
In FY 2014, Crompton Greaves Consumer Products business unit undertook actions to expand its reach to cover end consumer sales points; rationalize channels networks; deploy lean manufacturing initiatives; and increase product offerings in premium segments as well as in knowledge based intelligent products. Over 11,150 new retailers and 194 distributors were added to strengthen channel transformation; and nine new branches were opened in FY2014. The business also forayed its presence in the modern retail segment.
The Board of Directors of Crompton Greaves at their meeting held on 29 January 2014, approved the amalgamation of CG-ZIV Power Automation Solutions Limited (CG-ZIV) and CG Energy Management Limited (CGEM), wholly owned subsidiaries of the company, with the company, for simplification of the shareholding structure and operational synergies. A Scheme of Amalgamation filed with the High Court of Bombay was duly approved by the High Court and the said Scheme became effective on 25 March 2015, with 1 April 2014, as the appointed date. The Amalgamation of CG -ZIV and CGEM with the cCompany has resulted in an increase in the Authorised Share Capital of the company by Rs. 46.60 crore. Being wholly owned subsidiaries of the company, the entire paid-up share capital of CG-ZIV and CGEM would be cancelled and both the companies would stand dissolved without winding up.
The Board of Directors of Crompton Greaves (CG) at its meeting held on 3 March 2015 approved a Scheme of Arrangement (Scheme) for the demerger, under which, the Consumer Products Business of the company will be transferred into, Crompton Greaves Consumer Electricals Limited (CGCEL), which, upon demerger, shall be listed on the Stock Exchanges, subject to receiving regulatory and statutory approvals. The Scheme approved by the Board, proposes that upon sanction of the Scheme by the High Court of Bombay, the shareholders of the company will be allotted one equity share of CGCEL for every equity share held in the company. Crompton Greaves has received an intimation from Avantha Holdings Limited, one of the entities of the promoter group of the company, addressed to the Stock Exchanges announcing its intention to divest its 34.37% proposed shareholding in CGCEL to be allotted consequent to the sanction of the Scheme of Demerger, to one or more special purpose vehicles managed by Advent International Corporation, USA and a wholly owned subsidiary of Temasek Holdings (Private) Limited for an aggregate consideration of Rs 2000 crore, subject to requisite consents and approvals.
During the year ended 31 March 2015, the T3 facility at Mandideep of Crompton Greaves' Power Transformers (PT) business unit manufactured and despatched the 175th unit of 765 kV class products - aggregating over 40,000 MVA. It is the only plant in India to do so. During the year under review, the T3 plant produced and despatched the 190th unit of locomotive transformers to the Chittaranjan Locomotive Works (CLW). It crossed the milestone of producing over 100,000 MVA since its inception in 1995. It entered the export market by executing orders worth Rs. 15 crore. More importantly, the T3 facility booked record export orders of Rs. 163 crore.
The T3 facility secured major orders from (i) the National Thermal Power Corporation (NTPC) for 765 kV transformers and reactors; (ii) the Power Grid Corporation of India Limited (PGCIL) for 765 kV and 400 kV reactors; (iii) ISOLUX (Mexico) for 125 MVA/400 kV transformers and 400 kV reactors; (iv) CLW for locomotive transformers; and (v) Bechtel (USA) for 242 kV generator transformers and unit auxiliary transformers.
The T3 facility won an order from NTPC for the design, manufacture and supply of a Generator Step-Up (GSU) transformers for its largest capacity, 800 MW super-critical thermal power plant at Darlipali in Odisha. The order comprises 315 MVA 765kV single phase GSU transformers, 85 MVA 765 kV tie' transformers and 80 MVAR shunt reactors. CG won this order against stiff international competition; and it has reaffirmed CG's leadership in India's UHV segment. The T3 facility also bagged a significant order from PGCIL for the supply of 80 MVAR 765kV shunt reactors.
The T3 facility obtained 18% productivity improvement in 765 kV transformers; 22% improvement in 765 kV reactors; and 16% improvement in locomotive transformers.
The T1 plant at Kanjur Marg (Mumbai) won order for highest rating of generator transformers (396 MVA, 174 MVA) from L&T Power for a project in Bangladesh. The plant also won an order for trackside transformers for Indian Railways - a first for T1. The plant won first time orders from the Tamil Nadu Transmission Corporation. The plant won first export order for Laos for three 100 MVA/230 kV transformers, acquired several new customers across Africa, including Rwanda, Ivory Coast, Guinea, Mozambique, Tanzania, Ethiopia and South Africa; and gained new market entry in Mexico for the supply of transformers and shunt reactors to the Comision Federal de Electricidad.
The plant at Bogor, Indonesia (called PTID) completed its state-of-the-art manufacturing facility with environmentally controlled winding bays and new core stacking tables. It is the sole supplier of 500 kV transformers in Indonesia. During FY2015, the plant received a significant order from PT Perusahan Listrik Negara (PT PLN), the state electricity corporation of Indonesia, for 21 units of 60 MVA transformers - a transfer order' that was earlier awarded to a competitor. In addition, it delivered a 324 MVA strategic spare transformer to PT PLN - the largest 3-phase transformer produced by PTID. The plant secured two major orders from PLN under international competitive bidding with World Bank funding for 36 150 kV transformers and 36 transformers bays.
The medium voltage power transformer plant at Washington (Missouri, US), called PTUS secured a record order intake for supply of transformers for renewable energy projects. It also received large orders from NextEra Energy Resources Inc. from Florida, We Energies of Wisconsin, MEC Electric and the Omaha Public Power District. The plant successfully designed, built, tested and shipped its first two 230 kV/825 kV basic insulation level (BIL) transformer. It also successfully built and shipped dual low voltage regulation unit with individual load tap changers.
The power transformer plant at Winnipeg (Canada), called PTCA, completed a systematic labour force restructuring in May 2014 and headcount reduced.
At Crompton Greaves' power transformer plant at Tapioszele (Hungary), or PTHU three new winding machines and a new winding bay were added; three complete coil core assembly platforms were installed; and the refurbishment of the vapour phase drying (VPD) oven and the hot air vacuum oven were completed.
During the year under review, Crompton Greaves won a significant new contract win for the design, construction and delivery of 16 mobile substations for the Ministry of Electricity in Iraq. It is a collaborative effort. The 31.5 MVA transformers in each mobile substation will be produced in PT Hungary; the auxiliary/earthing units will be manufactured in the DT factory in Belgium; the control and protection equipment will be provided by CG's Automation arm, ZIV; and integration and assembly work for the project will be carried out in Belgium.Crompton Greaves Switchgears business unit successfully developed and type tested 800 kV current transformer (CT) in accordance with the specifications of PGCIL. It also developed and type tested 800 kV condenser bushings as per PGCIL specifications. The business unit received PGCIL's product approval for, and manufactured mixed dielectric synthetic oil capacitor voltage transformers (CVTs) up to 800 kV. The business unit successfully developed and type tested 420 kV, 3000A (six core) CT as per PGCIL specifications. This received product approval and was supplied to PGCIL's Sagardighi project in West Bengal.
The Switchgears business unit developed, type tested and supplied 300 kV transient response (TPX, TPY) CTs to PLN Indonesia. The business unit received a prestigious order for 92 units of 420 kV CTs from Bharat Heavy Electricals Limited (BHEL) for MPPTCL
The Switchgears business unit developed a new economically designed 245 kV CT with mild steel tanks for the Madhya Pradesh Power Transmission Company Limited (MPPTCL). The business unit supplied 75 such CTs, and received new orders for another 117 units.
The Switchgears business unit secured significant export orders of CTs, CVTs and voltage transformers (VTs) from Laos, Indonesia, Vietnam, Ethiopia, Democratic Republic of Congo, Uganda, Senegal, Algeria and Guatemala, often after overcoming tough competition from major international players. Regarding MV switchgears, FY2015 saw its first export sale of the 36 kV GIS to Nigeria, and the first significant Indian order from the Tamil Nadu Generation and Distribution Company (TANGEDCO). Also secured product approval of the 36 kV GIS from Oman. MV switchgears continued to witness repeat sale of higher rating (12kV, 50kA) vacuum circuit breakers (VCBs). A marquee customer for the indoor 12kV, 44kA VCB switchboard was the Nuclear Power Corporation of India. Moreover, new indoor VCBs were successfully type-tested for the export market, ranging from 12 kV, 40 kA, 2000 Amps to 36 kV, 25 kA, 2000 Amps.
FY 2015 saw MV switchgears produce its highest ever volume of indoor and outdoor VCBs produced - a total of 11,512 units, which represented a growth of 43% over the previous year. Crompton Greaves manufactured the highest number of 72.5 kV breakers in the year -1,028 units during FY 2015.
During the year under review, some of Crompton Greaves' Distribution Transformers (DT) plants succeeded in designing, testing and manufacturing new products. Among these were: (i) the production and certification of ATEX transformers of different sizes and ratings for KBR Inc. for the oil and gas industry; (ii) the development of 10 MVA double-stock transformer for off-shore wind turbine applications; (iii) offering and production of first series of transformers according to European ECO-directive; and (iv) increasingly producing and supplying transformers from the DT plant in Washington, Missouri, for the oil and gas sector and heavy industries in the US as well as renewables in Latin America.
In June 2014, Crompton Greaves, along with two other consortium partners, Fabricom and Iemants, was selected by Van Oord for its offshore wind project, Gemini, in the Netherlands.
Crompton Greaves' Automation business unit bagged a deal from PGCIL to supply six substation automation systems (SAS) in Jharkhand, India. The business unit won a major contract with Spanish multinational electric utility company Iberdrola to supply over 1 million ZIV single smart meters in a year. The Automation business unit was awarded a significant contract for supply of 750,000 smart meters from the Spanish utility Gas Natural Fenosa (GNF), making it one of GNF's main smart meter suppliers for the next two years.
Crompton Greaves was selected by Electricit Rseau Distribution France (eRDF), the public electricity distribution company managing 95% of the network in continental France, as one of the six suppliers to manufacture the first three million of its new generation Linky smart meters. This contract is a very significant achievement for CG, which is building a competitive strategy in the development of smart grid solutions under the ZIV brand, based on its own know-how and a unique mix of knowledge in protection, control, communications and metering technologies.
Crompton Greaves secured a prestigious contract from the Saudi Electricity Company (SEC), the largest power utility company in the Middle East serving approximately five million customers in the Kingdom of Saudi Arabia (KSA), to supply ZIV three phase smart meters. It bagged the largest lot for the supply of the first batch of industrial smart meters after months of close dedication from its application and sales team to understand the customer's needs - which enabled the company to offer a customised and competitive product.
In 2014-15, Crompton Greaves' Industrial Systems business unit crossed the Rs. 100 crore exports mark. The business unit secured the first IP65 motor order from the Saline Water Conversion Corporation, Saudi Arabia, for five 1.9 MW MV motors. The rotating machine facility at Hungary secured its largest order from Fives FCB of France, a specialist in the construction of cement plants, for 11 large slip ring MV motors to be supplied to Algeria Cement. Crompton Greaves obtained the first order from the Japanese global OEM, Torishima Pumps, for pump test motors of 500 KW for Indonesia. Crompton Greaves got the first development order of a three-phase diesel-electric multiple unit (DEMU) propulsion system from the Indian Coach Factory (ICF), Chennai.
Crompton Greaves' Lighting And Luminaires division launched a total of 207 stock keeping units (SKUs) during FY 2015, mostly in LED based fixtures. Exclusive LED experience centres were inaugurated at three locations. Continuous development and cost optimisation led to the company bagging 5 million LED lamp and LED street lights orders under the government's drive on energy efficiency. The company won the order for around 25,000 units of LED street lights in locations like Agartala, Jhalawar, Vishakhapatnam and Alleppey. The company won the first major LED luminaire export order to Oman, comprising mainly high wattage high-bay luminaires. The company signed up with Bata for lighting up 300 of their stores across India. The company also signed up with major corporate houses and banks for the supply of conventional and LED products for all their locations in India, including the use retrofit solutions.
Crompton Greaves' Fans division developed additional capacity of 0.74 million units/year at Kundaim. The Baddi unit's Fan production increased by 32% and crossed the 2 million mark. In FY 2015, 26 new models were introduced in the areas of (i) energy efficient ceiling fans, (ii) premium range ceiling fans, and (iii) table, pedestal and wall range fans. In FY 2015, Crompton Greaves' Appliances division launched 34 new products, involving new models of air coolers, mixer grinders, rice cookers and voltage stabilizers.
With effect from 1 October 2015, Crompton Greaves Limited (CGL) completed the demerger of its erstwhile Consumer Products business into a separate company, namely Crompton Greaves Consumer Electricals Limited (CGCEL). Each shareholder of CGL was allotted one equity share of CGCEL for every equity share of CGL held as on the record date of 16 March 2016. Thus, CGL became a pure B2B Company from 1 October 2015, the appointed date of the demerger.
During the financial year ended 31 March 2016, Crompton Greaves (CG) sold the Power Assets held by its subsidiary CG Power Systems Canada Inc, thereby exiting from the Power business in Canada. The company has divested its entire stake in the Joint Venture CG Lucy Switchgear Limited (presently Lucy Electric India Private Limited) to W Lucy & Co Limited, UK-the Joint Venture Partner, while retaining its distribution and supply arrangements with Lucy Electric India Private Limited.
During FY 2016, CG entered into binding transactions agreement with First Reserve for sale of its transmission and distribution (T&D) businesses at Indonesia, Hungary, Ireland, France, North America and Belgium at an enterprise value of Euro 115 million. First Reserve is a leading global private equity and infrastructure investor exclusively focused on energy. Moreover, the company closed down its systems business at Brazil and is in the process of winding up its systems business at North America and the United Kingdom.
During the year, the Distribution Franchisee Agreement (DFA) of CG with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for power distribution at Jalgaon in Maharashtra was terminated by MSEDCL exercising its step- in rights consequent to certain unresolved disputes.
During the year under review, CG's R&D activities continued to focus on development of improved energy efficient and reliable products. Power transformers focused on research in cost competitiveness, oil tightness and validation of hot spot calculation.
The R&D division developed CSA certified single phase motors upto 5HP 4P and 6P.
During the year under review, the T3 manufacturing facility at Mandideep of CG's Power Transformers (PT) business unit retained leadership position in 800 kV class with PGCIL by securing orders for 10,303 MVA, representing a market share of 25% by MVA and 24% by value. The plant bagged orders for 63 large locomotive transformers, orders for two 225 MVA, 230 kV transformers from L&T for a project that PGCIL is executing in Bangladesh and export orders for a 130 MVA, 220 kV transformer from Chile, and another for 126 MVA, 200 kV from the USA. The T3 plant designed and developed its first 220 kV Delta transformer (60 MVA, 220 / 23 kV) for Chile. It designed, developed and supplied the plant's largest generator transformer (396 MVA, 242 / 18 kV, 30) to the USA. The unit designed and developed a new locomotive transformer (7.7775 MVA, 25 kV) for Indian Railways.
The T1 plant at Kanjur Marg (Mumbai) of CG's Power Transformers (PT) business unit won several domestic and export orders during the year under review. The unit secured the largest power transformer export order till date for 1050 MVA, 500 kV auto transformers from Tenaga Nacional Berhad (TNB), Malaysia. It also received first export orders from: (i) Abu Dhabi for an alumina plant, through Bechtel, and (ii) L&T, Sharjah, for a 400 kV power project in Malawi, Africa. The T1 plant successfully short circuit tested: (i) a 250 MVA, 400 kV generator transformer at KEMA, Netherland for an NTPC project, and (ii) a 50 MVA, 66 kV transformer for the Delhi Metro Rail Corporation. The unit manufactured three 500 MVA transformers for PGCIL for its prestigious Kunta solar power project in Andhra Pradesh and delivered these in four months. The plant developed a cost effective design series for 400 kV shunt reactors.
During the year under review, CG's Switchgears division secured first orders from (i) ANDE, Paraguay, for supplying 36 kV indoor VCB panels; (ii) Indonesia for a newly developed, mid-mounted 24 kV indoor VCB panel; (iii) Vietnam for 24 kV RMUs; (iv) West Bengal State Electricity Distribution Company Limited for 36 kV indoor VCB panels; (v) Goa Electricity Department for 12 kV VCB panels with numerical protection relays incorporating the IEC 61850 protocol; (vi) Northern Power Distribution Company of Telengana Limited for numerical protection relays. The Switchgears division maintained leadership position in Indian market for vacuum interrupters and vacuum contactors with over 40% market share.
During the year under review, CG's Distribution Transformers (DT) product line located at T2 at Malanpur, near Gwalior secured several domestic orders for EPC projects, solar power projects including evacuation and from companies operating in the metals and mining sectors. It also secured export orders from NGM Company Limited in Kenya and for a major solar power project in the Philippines. It introduced two new products: (i) an inverter duty 12 pulse transformer of 3.2 MVA with foil winding, and (ii) a four-inverter feed 4.25 MVA transformer, also with foil winding.
CG's Industrial Systems business unit bagged orders for 11 MV motors for exports to Lafarge plants in Philippines, Bangladesh, Uganda and Vietnam. The business unit secured the largest rating order for India for 3.7 MW, 18-pole, 11 kV motors for use as circulating water (CW) pumps from Kirloskar Brothers Limited for LANCO's thermal power project at Ennore, Tamil Nadu. It also won another large rating order for a 5.25 MW, 16-pole, 11 kV CW pump, to replace a Chinese motor, for Vedanta's Talwandi Saboo power plant in Punjab. The Industrial Systems business unit secured a large order from Wilo Mather & Platt Pumps for 36 MV motors for water projects under the Narmada Valley Development Authority, Madhya Pradesh. It also bagged a single large order for 36 MV motors and 120 IEC standard LV motors from Jindal Machinery, Raipur.
During the year under review, CG received range approval from the Petroleum and Explosives Safety Organisation (PESO) for flame proof MV motors in the 132 kW to 1050 kW range. CG is the only motor manufacturer in India to get this certification. During the year under review, CG inaugurated the second LT motor manufacturing facility at Goa and achieved the highest production volume of 30,000 motors per month. The rotating machine facility at Tapioszele, Hungary, produced for a Russian client two large synchronous HPP generator - a first in the 2200 mm frame size of 11.3 MW, 24-pole, 6.6 kV, 60 Hz, each weighing 93.5 metric tons. It also produced 12 motors (pump drives) for the Rosatom nuclear power plants of 1250 mm frame size, 5 MW, 6-pole, 10 kV, with double cage rotor motors.
The drives business successfully commissioned a large test bed project at Al-Fanar Jubail, Saudi Arabia to test motors up to 18 MW, 13.8 kV. CG also successfully executed two sets of IGBT power converters based on a prototype by the Research Design and Standards Organisation (RDSO) of Indian Railways, which now qualifies CG to participate in large quantity tenders for such equipment. After successfully executing three-phase traction motors, the Diesel Locomotive Works (DLW), Varanasi, awarded an order for 128 such units.
CG also bagged a large Indian Railways order for 27 new, energy efficient IGBT Power Converters from the Chittaranjan Locomotive Works (CLW). The drives and automation business in Sweden launched its Flow Drive' water management solution and the VS10 / 30 micro drive of the 0.3 kW to 7.5 kW range. It also bagged major orders from Yara Marine and E.ON Energy, one of the largest electricity and gas suppliers in the UK. The drives and automation business in India and Sweden acquired 39 new customers and 19 new approvals. Some of the new customers were: Kone, Gamesa, Faively Transport, Nord ITC, Sandvik, Puzzolona, Anupam Cranes and Hercules Crane.
In CG's automation business line, ZIV received some significant orders from Spanish utilities such as Ibedrola and Gas Natural Fenosa (GNF) as well as a prestigious order to deliver 45,000 units of three-phase G1 smart meters for Linky in France.
During the year ended 31 March 2017, the Share Purchase Agreement (SPA) for sale of CG's Power Businesses in Europe, North America and Indonesia was terminated due to certain conditions precedent, the fulfillment of which was beyond the reasonable control of the parties to the SPA. The company continues to explore alternative geography / product wise options for sale of its international power businesses excluding Indonesia while continuing with strategic initiatives for improving the overall operational efficiency of its international power businesses.
During the year under review, the company completed sale of its Automation business comprising of ZIV Aplicaciones y Tecnologia S.L, its subsidiaries and Automation businesses in UK, Ireland, France and India at an Enterprise Value of Euro 120 Million. The sale is part of the company's strategy to focus on its core operations in Power and Industrial Systems businesses in their respective markets. The Automation business sale has significantly contributed to the reduction of company's international debts.
The company's branch office in Poland i.e. Crompton Greaves Ltd SA and overseas step-down subsidiaries CG Power Systems Brazil Ltda and Microsol Limited were liquidated on 8 December 2016, 21 December 2016 and 26 April 2017, respectively.
Pursuant to the Scheme of Arrangement between the company and Crompton Greaves Consumer Electricals Limited (CGCEL) as sanctioned by the High Court of Bombay on 20 November 2015, inter-alia, the trademarks associated with the company's erstwhile consumer products business viz Crompton' and Crompton Greaves' were transferred to CGCEL. Since the company, consequent to demerger of its erstwhile consumer products business, operates in a fully integrated B2B segment comprising of Power Transmission, Distribution and Industrial Businesses, the registered trademark CG' associated with the B2B business has been retained by the company. As a consequence of the above and pursuant to approval of the shareholders of the company vide Special Resolution dated 25 January 2017 and the Central Government / Registrar of Companies, Mumbai on 27 February 2017, the company changed its name from Crompton Greaves Limited' to CG Power and Industrial Solutions Limited' effective 27 February 2017. The new name CG Power and Industrial Solutions Limited' appropriately represents and reflects the business in which the company is presently engaged and the existing registered trademark/logo used by the company.
During the year under review, the CG's R&D activities continued to focus on development of indigenous and energy efficient products. The Power Transformers Division developed 4.5MVA 33 / 4*380 (4LV IN ONE core coil assembly) inverter duty for solar application and amorphous transformers. The Switchgear Division indigenously designed and developed composite insulators to cater to the changing requirements of utilities for switchgear products and to reduce dependence on imported materials. The Switchgear Division also developed Arc assist double motion interrupters that will result in approximately 40% reduction of mechanism energy requirement, algorithms for controlled switching of reactor & transformer and CG's Arista GIS which will achieve the requirements of global market for the ratings 36kV, 31.5kA, 2500A, 50 / 60Hz.
The Industrial Systems business developed new range of 480Vac stacked drives' (including AFE) from 250kW to 2MW in smaller footprint, AFE drives, next generation control platform, TSA range of Normal Duty softstarters with integrated bypass upto 1100A and next generation IP2X, IP54 (and possibly IP65) variable speed drives during the year. During FY 2017, CG registered designs of Compact Series 160C frame Alternator, 450 frame Alternator, Solid Yoke DC Motor-AFS / AUS315, Amplydine for T90 Stabilizer-BEL Chennai, Solid Yoke DC Motor in frame AUS / AFS250 (Locomotive) and Flameproof Brake Motors E90-160.
In FY 2017, CG's Power Systems business unit's T3 manufacturing facility at Mandideep achieved record net sales of almost Rs 442 crore. Keeping in view growing orders from Indian Railways, T3 created a dedicated facility for manufacturing railway transformers, and its new 30MVA 132kV transformer produced in this unit for the Delhi Metro Rail Corporation (DMRC) was successfully short circuit tested at the Central Power Research Institute (CPRI).
The T1 facility at Kanjur Marg, Mumbai, had several successes during the year. The manufacturing unit designed and developed a 50MVA, 66kV transformer with ester oil for Siemens, which was supplied for the Delhi metro (DMRC). It also designed and developed a single-phase, 33.3MVA, 400kV coupling transformers for PGCIL's Statcom Project at the NP Kunta Ultra-Mega Solar Park in the district of Ananthapur in Andhra Pradesh. The T1 facility successfully short circuit tested i. a 250 MVA, 400kV generator transformer at KEMA (Netherlands) for NTPC Ramagundam, and ii. a 50MVA, 220kV transformer at the CPRI for the DMRC. It also successfully commissioned 11 sites in FY2017 for PGCIL as a part of its RT2 Project.
In FY 2017, CG's Indonesian operations achieved highest ever order intake for power transformers of US$142 million. The Indonesian operations bagged the largest ever open book order from PLN of US$95 million, of 114 power transformers aggregating 7400MVA. The Indonesian operations achieved a breakthrough in the power generation segment with an order intake of US$8 million and also bagged orders worth US$17 million for mobile sub-stations.
CG's T2 facility at Malanpur which manufactures Distribution Transformers (DT) turned around in FY 2017 with an EBIDTA of 7.3% to sales. It achieved highest ever order input of Rs 274 crore, and received its largest ever single order of Rs 32.5 crore from Greenco (Hyderabad) for 100 units of 4.5MVA, 33kV for solar energy applications.
In FY 2017, CG's Switchgears division indigenously developed and commissioned capacitor voltage transformers (CVTs) and surge arresters for the 1,200kV experimental sub-station set up by NTPC at Bina (Uttar Pradesh). The Switchgears division set up and commissioned 108 current transformers (CTs) at a single location, namely the Pallavadi (Tamil Nadu) substation, for the Tamil Nadu Transmission Corporation (TANTRANSCO). It also manufactured and commissioned 765kV gas circuit breakers for PGCIL at Jabalpur (Madhya Pradesh) and Champa (Chhattisgarh).
The Switchgears division produced, according to global standards, 36kV medium voltage GIS switchgears for renewable energy the first of its kind to be manufactured in India. These are specially designed to fit at the base of wind turbines, and have been approved by Gamesa of Spain. The Switchgears division created mid-mounted vacuum circuit breaker (VCB) panels for exports-and sold these to Paraguay, Indonesia, Sierra Leone and in Europe. It also received the first GIS export orders from Vietnam and Ukraine. The division manufactured 72kV dead tank breakers, for which orders were secured from Latin America and the Caribbean.
The Switchgears division designed and manufactured a 60 unit panel switchboard of 7.2kV and 44kA for the Steel Authority of India Limited's Durgapur Steel Plant with MECON (Ranchi) as the consultant. The Switchgears division commissioned 72kV to 145kV GIS switchgears for the Himachal Pradesh SEB (at Shimla), the Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) at Allahabad and Ghaziabad, and the Haryana Vidyut Prasan Nigam Limited (HVPNL) at Gurugram. The Switchgears division developed and secured certification for a 245kV GIS switchgear, and received the first order for five bays from UPPTCL.
In FY 2017, revenue from low tension (LT) motors (LVRM) of CG's Industrial Systems business unit crossed the Rs 1,000 crore mark. It produced 2,250kVA large alternator, a first for CG and for India. CG manufactured large AC motors in India of a frame-size of 500mm.
For the railways business, FY2017 saw CG achieving its highest ever order input of almost Rs 625 crore, representing a growth of 66% over the previous year. It also recorded its highest ever sales of almost Rs 436 crore, a 22% growth over the last year. FY 2017 also saw CG securing 100% of the tender quantity for an order worth Rs 82 crore from DMW and another for Rs 89 crore from the Integral Coach Factory in Chennai. The business also received three orders of above Rs 40 crore each from CLW. CG was the first company in India to develop and integrate the under slung' propulsion system for Indian Railway's 2 x 350HP diesel electric tower car and it was the second company in India to develop and integrate the complete propulsion system for 1600HP AC-AC diesel electric multiple unit.
The company successfully completed divestment of its power business in USA comprising its overseas step down subsidiary-CG Power USA Inc. on 31 July 2017 to WEG Electric Corp for an enterprise value of US$31 million. WEG Electric Corp is a nominee of WEG S.A., a Brazilian publicly listed company. Consequently, CG Power USA Inc. ceased to be a wholly owned step-down subsidiary of the company and has been renamed as WEG Transformers USA Inc. Further with respect to the company's business in Hungary, CG Electric Systems Hungary Zrt. (ESHU), the company's step-down subsidiary and CG International BV, the company's subsidiary have inter-alia entered into a Business Transfer Agreement and Share Sale and Purchase Agreement with Ganz Villamossagi Zrt. and Alester Holdings Limited (the Purchasers) for sale of Assets (excluding switchgear business) and Shares of ESHU respectively for an enterprise value of Euro 38 Million with expected completion by 31 March 2018 subject to requisite approvals. Upon request of the Purchasers, the completion date has been extended pending the receipt of the requisite approvals. Thereafter, the necessary documents for effecting transfer of all the shares of ESHU to the Purchasers have been executed. Considering certain conditions subsequent to be performed between the parties, the shares have been held in escrow and will be handed over to the Purchasers upon completion of such conditions. Consequent to this, ESHU will cease to be a step-down subsidiary of the company.
During the year ended 31 March 2018, CG Power Systems Belgium NV (PSBE), divested its 49% stake in its Joint Venture in Saudi Arabia, Saudi Power Transformer Co. Limited. CG Power Solutions Saudi Arabia Co. in which CG Holdings Belgium NV, a step down overseas subsidiary of the company, holds 51% equity shareholding shall be liquidated upon completion of its open orders. During the year the solutions businesses in US and UK and the switchgear business in Hungary have been phased out. The above divestments are in line with CG Power and Industrial Solutions' strategy to exit from identified geographies/products of its international businesses and focus its synergies on the retained ones including India and Indonesia with the objective of improving the overall operational efficiency, reducing debt and for enhancing shareholders' value.
During the year under review, the company's R&D activities continued to focus on development of indigenous and energy efficient products. One of the significant achievements was the indigenous development and manufacture of 6 MW 6.6 kV vertical motor for Nuclear Power Corporation of India Limited (NPCIL) for use in its nuclear reactor. At present, the Company is the sole Indian manufacturer to develop this motor for NPCIL. It has undergone and passed inspection by NPCIL at every stage of development. The Switchgear Division indigenously designed and developed resin impregnated paper (RIP) bushings. RIP bushings are of a dry type without oil, encapsulated with composite insulators.
In line with the company's objective of offering customer centric and smart products, the Company developed a Digital Surge Counter to monitor the health of zinc oxide surge arresters. The product shakes hand with digital technology to measure vital parameters such as total leakage current and total surge counts.
There was also the development of 170 kV and 362 kV Externally Gapped Line Arresters which protect transmission lines from lightning and, thus, improve performance and reliability. The design is such that it can deal with insulation coordination in worst conditions.
The Low Tension Motors division of the company developed the entire range of IE3 motors (80-355 frame, 0.37 kW to 250 kW) with an enclosure capable of withstanding the pressure of explosive gas and prevent transfer of flames. This division also developed under slung mounted 500 kVA DG sets for Indian Railways in order to utilize the coach onboard space for transporting goods as additional space.
During the quarter ended 31 March 2018, the Company examined the recoverability of certain overdue/non-recoverable assets and, after this analysis, has written these off. These have been accounted for as exceptional items amounting to Rs 443 crore (net) which also include provision for litigation claims.
The company's Power Transformers (PT) facility at T1 (Kanjur Marg, Mumbai) had several successes in FY 2018 which includes successful short circuit testing at KEMA (The Netherlands) of a 315 MVA/400 kV transformer produced for the Uttar Pradesh Power Transmission Company Limited (UPPTCL). The plant commissioned India's first static synchronous compensator (STATCOM) transformer for PGCIL-through an order from L&T and Siemens. In the course of FY 2018, four such STATCOM transformers were commissioned; eight were supplied; and another four were successfully tested. The T1 plant designed and developed a 25 MVAr, 225 kV, three-phase variable shunt reactorfor SENELEC, in Senegal. The order is for five such reactors.
The company's Power Transformers facility at T3 facility at Mandideep achieved its highest ever dispatch of over 100 transformers in FY 2018.
During the year under review, CG's Switchgears division installed 1 MW rooftop solar panels with associated instrumentation. During the year under review, CG became the first Indian enterprise to get an approval from PGCIL for 765 kV bushings. Two such bushings were commissioned in November 2017; and a first order was received for 12 more of these bushings. The Switchgears division was the first to develop and produce a 765 kV current transformer (CT) with indigenous technology. The division developed resin impregnated paper (RIP) bushings upto 145 kV. It produced technologically enhanced EHV current transformers such as 420 kV CTs with composite insulators in line with PGCIL's new specifications; and 420 kV CTs with cast tank for improved aesthetics as well as better performance. The division retrofitted older hydraulic circuit breakers at PGCIL's Dadri sub-station with 400 kV gas circuit breakers.
The Switchgears division designed, built and successfully supplied feeder remote terminal units (FRTUs) to Torrent Power for Agra and Surat. FRTUs are intelligent electronic devices designed for use in feeder automation. With this, CG has entered the area of distribution automation which has large upside potential in the world of smart grids.
The division secured the first order from Indian Railways for 13 bays of 72 kV GIS, which opens up this product to the railways and the Metro markets and also got approval from the Research Design and Standards Organisation (RDSO) of the Indian Railways for 25 kV, 2,000 A single pole porcelain clad outdoor vacuum circuit breaker.
The Switchgears division produced cost effective designs for 36 kV, 26.3 kA 630 A/1,250 A single bus GIS; and for 36 kV/40.5 kV, 31.5 kA, 2,500 A AIS vacuum circuit breaker panel, enhanced reliability by manufacturing high cantilever 800 kV lightning arrestors, as well as 245 kV arc assisted gang operated gas circuit breakers and produced new ranges of 145 kV and 245 kV GIS; and 420 kV, 2,500 A condenser bushings as well as EHV current transformers with a composite insulator.
The Gas Insulated Switchgear (GIS) unit Developed new and unique designs for 245 kV GIS orders from Andritz Hydro (Vietnam), Odessa Energo (Ukraine) and Torrent Power (Surat), created a new market for GIS in West Bengal by securing orders from the West Bengal State Electric Transmission Company Limited (WBSETCL) and came up with a new application that linked a bank of medium voltage GIS with appropriate supervisory control and data acquisition (SCADA) panels for Maharashtra State Electricity Distribution Company Limited (MSEDCL) and the Haryana Vidyut Pariyojana Nigam Limited (HVPNL).
During the year under review, revenue from motors of CG's Industrial Systems Business Unit crossed Rs 1,500 crore mark. In FY 2018, Energy Efficiency Services Limited (EESL), an energy services company of the Government of India to facilitate energy efficient projects, put out its largest ever tender worth approximately Rs 215 crore for energy efficient LT motors. CG not only offered bids for all the ranges in the tender, but also won 53% of the quantity (63,500 units) and 49% (R 107 crore) of the tender value. The Industrial Systems Business Unit tested and successfully dispatched a vertical primary coolant pump HT motor of 6 MW 6.6 kV for NPCIL, Rajasthan. This is a primary coolant pump motor fitted inside the nuclear reactor dome, and is estimated to have a life of 40 years.
The business unit produced and type-tested for construction industry applications (i) liquid cooled motors; (ii) line start permanent magnet; (LSPM) motors that operate at a fixed synchronous speed irrespective of the load; and (iii) gearless traction motors for elevators and lifts. The business unit introduced motors at the new IE4 efficiency level, and produced 8-pole motors in the IE2-IE3 range. It also produced drive mounted smart and intelligent motors. The business unit launched IE4 AC motors-both induction and permanent magnet-of frame size varying from 80 mm to 225 mm for industrial applications. CG was the first Indian manufacturer to produce flameproof (FLP) motors with a frame size of 400 mm. In a space of 45 days, the Industrial Systems Business Unit developed and supplied underslung 500 kVA alternators for the Indian Railways.
CG was the first Indian manufacturer to produce water-cooled LT motors with 25% to 30% enhanced power output. Expanded the range of DC motors to a frame size of 355 mm. CG was the first company in India to manufacture FLP brake motors, which has a large market thanks to import substitution possibilities. The business unit also developed a 160 KW motor for electric buses, which is under validation by the manufacturer.
In the FHP category, the business launched (i) 15' cooler fan motors suitable for 89 mm, 410 mm and 126 mm fans; (ii) pressure die cast aluminium (PDCA) motors across 10 ratings, from 0.12 kW to 3.7 kW; (iii) mild steel sheet body motors from 0.18 kW to 3.7 kW for exports to North and South America; (iv) high torque brushless DC (BLDC) motors of up to 300 rpm for European markets; (v) 500 W and 700 W motors for WILO pumps, which is an import substitute; and (vi) 500 W, 3,000 rpm BLDC blower motor for Indian Railways.
The business unit prototyped electric traction motors for propulsion of electrical vehicles. It secured a test order for four 160 kW/215 kW, four-pole, pad mounted, water cooled, speed sensor fitted motors for use in an electric bus with a capacity for 26 seating and 21 standing passengers.
For the railways business, FY 2018 saw CG achieving its highest ever order input of over Rs 917 crore, or a growth of 47% over the previous year. It also recorded its highest ever sales of almost R 623 crore, representing a 43% growth over the last year. CG received the largest ever single order of 60 sets of AC-AC propulsion system worth Rs 111 crore from the Chittaranjan Locomotive Works (CLW), which represented a 21% share of the total order. It also secured the highest order from CLW and the Diesel Locomotive Works (DLW at Varanasi) for 582 three-phase traction motors valued at Rs 96.3 crore. In addition, it received the largest single order of 89 underslung motors for diesel electric tower cars (DETCs) worth Rs 141.7 crore and the highest order from CLW and DLW for 151 loco transformers worth Rs116.4 crore. In June 2018, CG bagged another order of Rs 319 crore for underslung electrics for DETCs.
During the year 2019, CG Power & Industrial Solutions Middle East FZCO was incorporated as a wholly owned step-down subsidiary of the Company in UAE. In October 2019, CG Goa LTM unit at Colvale commissioned its state-of-the-art facility for impregnation and baking of windings.
During the year 2020, CG International BV has divested its entire shareholding in CG Service Systems France SAS (SEFR), along with its liabilities, for a net consideration of _30,000 to AK Group France, through a Share Purchase Agreement and upon completion of the divestment, SEFR has ceased to be a subsidiary of the Company with effect from 20 July 2020.
The Company launched indigenously developed 40.5kV SF6 Gas Circuit Breaker during FY' 21. It further developed 12kV Ring Main Unit (RMU) - Arista-S for Smart Distribution application to strengthen the Power Distribution Networks in Utilities for reliability and continuity of power supply. The Company re-launched Fast Moving Electrical Goods (FMEG) like domestic and agricultural Pumps and industrial and domestic Exhaust Fans during 2021.
CG's Commercial Motors Division, Goa launched a new array of Ceiling, Table & Pedestal Fans in 2021-22. The Company launched SF6 Gas 145kV GIS Surge Arrester and Partial Discharge Sensor Suitable for Gas Insulated Switchgear; introduced three new varieties of Capacitor Voltage Transformers (CVTs) to product basket to enhance the customer reach for wider applications and launched new design of Current Transformer (CT).
CG Power & Industrial Solutions Ltd
Directors Reports
TO
THE MEMBERS
Your Directors are pleased to present their Eighty-Sixth Annual Report
on the business and operations of your Company along with the audited financial
statements, both standalone and consolidated, for the financial year ended 31 March 2023.
COMPANY PERFORMANCE
Your Company's standalone turnover from operations was ' 6,580 Crore
during the year under review, as compared to ' 5,159 Crore in the previous year,
representing a YoY growth of 28%, and the consolidated turnover was ' 6,973 Crore as
compared to ' 5,484 Crore in the previous year, representing a YoY growth of 27% over the
previous year.
Your Company's financial performance for the year ended 31 March 2023
as compared to the previous year is given in the Table below.
COMPANY FINANCIAL HIGHLIGHTS (in ' Crore)
|
Standalone |
Consolidated |
2022-23 |
2021-22 |
2022-23 |
2021-22 |
Net
Sales and Services |
6,580 |
5,159 |
6,973 |
5,484 |
EBIDTA |
1,016 |
642 |
1,061 |
671 |
Less:
Finance costs |
14 |
66 |
16 |
68 |
Less:
Depreciation and amortisation expenses |
75 |
74 |
95 |
99 |
Profit
before exceptional items |
927 |
502 |
950 |
504 |
Exceptional
items (net) |
56 |
240 |
52 |
248 |
Profit
before tax |
983 |
742 |
1,002 |
752 |
Less:
Tax Expense |
198 |
115 |
206 |
122 |
Profit
from continuing operations |
785 |
627 |
796 |
630 |
Less:
Minority Interest |
NA |
NA |
0 |
(1) |
Add:
Profit from discontinued operations |
- |
- |
167 |
284 |
Profit
for the year |
785 |
627 |
963 |
913 |
The Company recorded robust performance during the year under review
resulting in growth in revenue and EBITDA.
A detailed review of the operations and financial performance of your
Company and each of its business segments is contained in the 'Management Discussion and
Analysis' section of this Annual Report.
BUSINESS SEGMENTS:
a) Industrial Systems:
The Industrial Systems recorded revenue of ' 4,934 Crore as compared to
' 3,953 Crore during the year 2021-22, registering a growth of 25% as compared to previous
year. The operating profit before interest and tax of Industrial Systems stood at ' 787
Crore as compared to ' 482 Crore during the previous year, registering a growth of 63%.
b) Power Systems:
The Power Systems recorded revenue of ' 2,023 Crore as compared to '
1,516 Crore during the year 2021-22, registering a growth of 33% as compared to previous
year. The operating profit before interest and tax of Power Systems stood at ' 225 Crore
as compared to ' 138 Crore during the previous year, registering a growth of 63%.
EXPANSION:
In order to meet the expected increase in demand for the products of
the Company, the Board has approved the following expansion projects during the year:
A. Expansion of manufacturing capacity of Motors at the Company's plant
at Ahmednagar and Goa at an investment of ' 230 Crore. The said expansion would increase
the manufacturing capacity of Low Tension Motors ("LT Motors") upto 19.92 lakhs
nos. per annum, from the existing capacity of 9.93 lakhs nos. per annum.
B. Expansion of manufacturing capacity of Power Transformers and
Distribution Transformers units of the Company at its plants at Malanpur and Bhopal at an
investment of ' 126 Crore. The said expansion would increase the capacity from 17,000 MVA
to 25,000 MVA for Power Transformer and from 6,900 MVA to 9,900 MVA for Distribution
Transformers.
SCHEME OF ARRANGEMENT:
The Board of Directors of the Company, at its Meeting held on 19
October 2022 has approved a draft Scheme of Arrangement ("Scheme") under Section
230 and other applicable provisions of the Companies Act, 2013 ("Act"). The
Scheme inter-alia provides for capital reorganization of the Company, whereby it is
proposed to transfer '400 Crore from the General Reserves to the Retained Earnings of the
Company with effect from the Appointed Date i.e. the effective date of the Scheme. The
Scheme is subject to receipt of regulatory approvals/ clearances from the Hon'ble National
Company Law Tribunal, Mumbai Bench ("NCLT"), Securities and Exchange Board of
India ("SEBI"), BSE Limited and National Stock Exchange of India Limited and
such other approval/clearances, as may be applicable. BSE is appointed as the Designated
Stock Exchange by the Company to obtain the No Objection Certificate (
NOC) from SEBI under Regulation 37 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and the said NOC is awaited. On receipt of the
NOC, the Scheme shall be presented to the NCLT for its approval.
Redemption of Non-convertible Debentures
The Company had on 5 December 2022 redeemed its 20,000 Unlisted,
Unsecured, Unrated, Redeemable, Non-Convertible Debentures of face value ' 1,00,000/- each
aggregating to ' 200 Crore, which were issued on 4 December 2020 pursuant to the terms and
conditions of the Master Implementation cum Compromise Settlement Agreement and
Debenture Trust Deed dated 20 November 2020. The said debentures were
redeemed by the Company by exercising the right of early redemption on completion of two
years from the date of allotment.
Divestment
As stated in the Annual Reports of the Company for previous years, due
to financial stress and unviable operations, decisions were taken from time to time to
prune / close down certain subsidiaries of the Company. In furtherance of the same, during
the year under review, the liquidation process of the Company's Step-Down Subsidiary - CG
Power & Industrial Solutions Middle East FZCO, Dubai UAE was completed.
General
During the year under review, the Company repaid all its long-term
debts to the lending banks. The Company has received an improved Credit Rating of 'IND AA
' from India Ratings & Research as
against the earlier rating of 'IND AA-'.
Company has settled all the guarantee obligations to its lenders
(Standard Chartered Bank, Barclays Bank and Exim Bank) towards loans availed by the
erstwhile Subsidiaries in Belgium.
Company has received approval of BMC for renewal of the lease of land
where the CG House is located.
DIVIDEND
The Board of Directors at their Meeting held on 2 March 2023, declared
an interim dividend of ' 1.50 (Rupees One and Paise Fifty only) (75%) per equity share of
' 2/- (Rupees Two only) each. The interim dividend was paid to the shareholders on 29
March 2023. The total outflow on account of said dividend was ' 229.07 Crore. Your Board
does not recommend any further dividend for the financial year 2022-23.
The dividend declared is in accordance with the Dividend Distribution
Policy of the Company. The Dividend Distribution Policy, in terms of Regulation 43A of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 is available on the Company's website at -
https://www.cgglobal.com/admin/ uploads new/Dividend Distribution Policy.pdf
TRANSFER TO RESERVES
Your Directors do not propose to transfer any amount to the reserves.
SUBSIDIARIES
Details of subsidiaries as on 31 March 2023 : There are 3 Indian and 18
foreign subsidiaries (including 2
subsidiaries in Belgium along with their subsidiaries declared as
bankrupt; 5 subsidiaries under voluntary liquidation and 1 subsidiary declared insolvent).
During the year under review, your Company has not incorporated or acquired any company.
The Corporate Insolvency Proceedings initiated under the Insolvency and
Bankruptcy Code, 2016 during the financial year 2021-22, by the Company against its Wholly
Owned Subsidiary - CG Power Solutions Limited, is pending before the Hon'ble National
Company Law Tribunal, Mumbai Bench.
Pursuant to Section 136 of the Companies Act, 2013 ("the
Act"), the audited financial statements, including the consolidated financial
statements and related information of your Company and audited/ unaudited annual accounts
of each of its subsidiaries are placed on the website of your Company.
Highlight of performance of subsidiaries of the Company is given below:
1. CG Adhesive Products Limited (formerly known as CG-PPI Adhesive
Products Limited):
CG Adhesive Products Limited (
CGAPL)
is the Company's subsidiary in Goa. Your Company holds 82.76% of CGAPL's equity share
capital. CGAPL manufactures and deals in specialty adhesive tapes and labels.
During the year under review, CGAPL recorded revenue of ' 23.60 Crore
(previous year: ' 23.24 Crore) and registered profit before tax of ' 2.90 Crore (previous
year: ' 3.78 Crore).
2. QEI, LLC:
QEI, LLC is the subsidiary of CG Power Americas, LLC, and a wholly
owned step-down subsidiary of your Company in US, operating in multiple markets and
business sectors within and relating to distribution control, load management control,
supervisory control and data acquisition systems.
During the year under review, QEI, LLC recorded revenue of $ 11.46 Mn
i.e. equivalent to ' 94.23 Crore (previous year: $10.33 Mn i.e. equivalent to ' 77.87
Crore). It registered profit before tax of $ 1.41 Mn i.e. equivalent to ' 11.62 Crore
(previous year: $ 3.18 Mn i.e. equivalent to ' 23.96 Crore).
3. CG Drives & Automation Sweden AB:
CG Drives & Automation Sweden AB is a subsidiary of CG Industrial
Holdings Sweden AB and a wholly owned step-down subsidiary
of your Company in Sweden. It is a technology partner for energy
efficient products and solutions. It develops, manufactures and markets the equipment for
control and protection of industrial processes.
During the year under review, CG Drives & Automation Sweden AB
recorded revenue of SEK 299.85 Mn i.e. equivalent to ' 236.57 Crore (previous year: SEK
258.69 Mn i.e. equivalent to ' 208.19 Crore) and registered profit before tax of SEK 21.84
Mn i.e. equivalent to ' 17.23 Crore (previous year: SEK 7.11 Mn i.e. equivalent to ' 5.72
Crore).
4. CG Drives & Automation Germany GmbH:
CG Drives & Automation Germany GmbH is a subsidiary of CG
International BV, Netherlands, and a wholly owned step-down subsidiary of your Company in
Germany. It is into manufacture, sale, maintenance and repair of electronic devices and
facilities in the area of drive technology.
During the year under review, CG Drives & Automation Germany GmbH
recorded revenue of
22.24
Mn i.e. equivalent to ' 196.20 Crore (previous year: 19.67 Mn i.e. equivalent to ' 165.78 Crore). It registered profit
before tax of 1.52 Mn i.e.
equivalent to ' 13.40 Crore (previous year: 0.80 Mn i.e. equivalent to ' 6.75 Crore).
5. CG Drives & Automation Netherlands BV:
CG Drives & Automation Netherlands BV is a subsidiary of CG
International BV, Netherlands, and a wholly owned step-down subsidiary of your Company in
Netherlands. It is into development, production and marketing of inverter products
including electrical motor drives, and trading of related products.
During the year under review, CG Drives & Automation Netherlands BV
recorded revenue of
8.09
Mn i.e. equivalent to ' 71.32 Crore (previous year: 6.34 Mn i.e. equivalent to ' 53.42 Crore) and registered profit
before tax of 0.58 Mn i.e.
equivalent to ' 5.14 Crore (previous year: 0.59 Mn i.e. equivalent to ' 4.99 Crore).
Other than above, the remaining subsidiaries of the Company do not have
any business operations. In terms of Section 129 of the Act, statement containing salient
features of the financial statements of your Company's subsidiaries/ associates/ joint
ventures companies in Form AOC-1 is given in the notes to the financial statements in this
Annual Report.
Pursuant to Regulation 16 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (
SEBI LODR), a policy for determining material subsidiary of your Company as approved by
the Board of Directors is made available on the website under: https://www.cgglobal.com/
admin/uploads new/Policy determining Mat Subsidiaries.pdf
MATERIAL ORDERS OF REGULATORS / COURTS / TRIBUNALS
There are no significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status and the Company's operations in
future.
UPDATE ON INVESTIGATIONS INITIATED IN THE PREVIOUS YEARS
The investigations by Central Bureau of Investigation (CBI), Serious
Fraud Investigation Office (SFIO) and Enforcement Directorate (ED) into the affairs of
your Company and its subsidiaries pertaining to the past period and against the erstwhile
promoters/directors of the Company relating to transactions that took place when the
Company was under the control of the previous management / promoters, details of which
have already been reported to the stock exchanges / in the previous Annual Reports of the
Company, are in progress. Your Company is extending full co-operation to these agencies
and information and documents as sought by them are being promptly provided by the
Company.
AUDITORS AND AUDIT REPORTS STATUTORY AUDITORS
M/s. S R B C & CO LLP, Chartered Accountants (ICAI Firm
Registration Number 324982E/E300003) were appointed as Statutory Auditor of the Company at
the 81st Annual General Meeting ("AGM") held on 28 September 2018 to hold office
from the conclusion of the said meeting till the conclusion of the 86th AGM. Accordingly,
the term of office of M/s. S R B C & CO LLP, as Statutory Auditors of the Company will
conclude at the close of the forthcoming AGM of the Company.
The Board of Directors of the Company, based on the recommendation of
the Audit Committee, at its Meeting held on 8 May 2023, has proposed to the shareholders
of the Company for their approval at the ensuing AGM, the re-appointment of M/s. S R B C
& CO LLP, Chartered Accountants (ICAI Firm Registration Number 324982E/E300003) as the
Statutory Auditor of the Company to hold office for a second term of five consecutive
years from
the conclusion of the 86th AGM till the conclusion of the 91st AGM to
be held in the year 2028. The Notice convening the 86th AGM to be held on 27 July 2023
sets out the details in this regard.
M/s. S R B C & CO LLP have confirmed that they satisfy the
independence criteria required under the Act.
The Auditor's Report on the financial statements of the Company for the
year ended 31 March 2023, which forms part of the Annual Report of the Company, does not
contain any qualification, reservation or adverse remark.
COST AUDITOR
As per the requirement of Section 148(1) of the Act read with rules
made thereunder, your Company is required to maintain cost accounts and records.
Accordingly, your Company has maintained cost accounts and records for financial year
2022-23 as applicable for its product range.
During the year under review, the Company filed the Cost Audit Report
for the financial year 2021-22 with the Registrar of Companies, Mumbai, within the
prescribed statutory timelines.
Upon recommendation of the Audit Committee, the Board has re-appointed
M/s. R. Nanabhoy & Co., Cost Accountants as Cost Auditor of your Company for financial
year 2023-24 at a remuneration of ' 8,30,000/- (Rupees Eight Lakh Thirty Thousand only)
per annum plus out-of-pocket expenses and taxes, as applicable. The Act mandates that the
remuneration payable to the Cost Auditor is ratified by the shareholders. Accordingly, a
Resolution seeking the Shareholders' ratification of the remuneration payable to the Cost
Auditors for the financial year 2023-24 is included in the Notice convening the ensuing
Annual General Meeting.
SECRETARIAL AUDITOR
Your Company had appointed M/s. Parikh & Associates, Practicing
Company Secretaries, Mumbai (Firm Registration Number: P1988MH009800), to undertake the
Secretarial Audit of the Company for financial year 2022-23.
Your Company has generally complied with the Secretarial Standards and
the Secretarial Audit Report is annexed in Form MR-3 for financial year 2022-23 as
Annexure 4 to this Report. The Secretarial Audit Report does not contain any
qualification, reservation or adverse remark.
INTERNAL FINANCIAL CONTROLS
The Company emphasizes the importance of robust internal control system
which lays down the foundation of strong governance structure and promote a culture of
integrity, transparency, and accountability in the business. Given the nature of business
and size of its operations, the Company has designed and instituted a strong internal
control system that comprises well-defined organization structure, roles and
responsibilities, documented policies and procedures to reduce business risks through a
framework of process controls. A detailed note on Internal Financial Controls is included
in the Management Discussion and Analysis.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)
BOARD OF DIRECTORS
Composition
Your Company's Board of Directors consists of eight Directors
comprising (i) Three Non-Executive Non-Independent Directors which includes the
Non-Executive Chairman of the Board (ii) Four NonExecutive Independent Directors, and
(iii) a Managing Director.
Mr. Vellayan Subbiah, Non-Executive Director, is the Chairman of your
Board. Mr. P S Jayakumar, Ms. Sasikala Varadachari, Mr. Sriram Sivaram and Mrs.
Vijayalakshmi R Iyer are Independent Directors in terms of Regulation 16 of the SEBI LODR
and Section 149 of the Act. Mr. M A M Arunachalam and Mr. Kalyan Kumar Paul are
Non-Executive NonIndependent Directors on your Board.
Mr. Natarajan Srinivasan is the Managing Director on your Board.
Your Board consists of professionals with diverse functional expertise,
industry experience, educational qualifications and gender mix relevant to fulfilling your
Company's objectives and strategic goals.
Appointment/ Retirement of Directors during the year
During the year under review, based on the recommendations of the
Nomination and Remuneration Committee, your Board had appointed Mrs. Vijayalakshmi R Iyer
as an Additional Director in the capacity of Non-Executive Independent Director of the
Company with effect from 24 September 2022. Her appointment was approved by the Members
through Postal Ballot on 14 December 2022.
Mr. Shailendra Roy completed his tenure as an Independent Director of
the Company and ceased to be a director on 18 September 2022. The Board places on record
its appreciation of the contribution made by Mr. Shailendra Roy during his tenure as an
Independent Director of the Company.
Mr. Natarajan Srinivasan was re-appointed as Managing Director for a
further period of one year from 26 November 2022 to 25 November 2023 and the said
re-appointment was approved by the Members through Postal Ballot on 14 December 2022.
The Board has recommended to the shareholders the re-appointment of Mr.
Natarajan Srinivasan as Managing Director of the Company with effect from 26 November 2023
upto 30 April 2025 (both days inclusive) The Notice calling the 86th AGM contains details
in this regard.
Retirement by rotation
In terms of the provisions of Section 152 of the Act and the Rules made
thereunder and Article 114 of the Articles of Association of the Company, Mr. Kalyan Kumar
Paul retires by rotation at the ensuing Annual General Meeting of the Company and is
eligible for re-appointment.
As per Regulation 36 of the SEBI LODR and Secretarial Standard-2 on
General Meetings issued by the Institute of Company Secretaries of India (SS-2), a brief
profile and other relevant details regarding re-appointment of Mr. Kalyan Kumar Paul are
contained in the Annexure accompanying the explanatory statement to the Notice of the
ensuing Annual General Meeting.
INDEPENDENT DIRECTORS
' DECLARATION
Your Company has received declarations from all its Independent
Directors confirming that they meet the criteria of independence as laid down under
Section 149 of the Act and Regulation 16 of the SEBI LODR.
In the opinion of the Board, all the Independent Directors of your
Company fulfill the conditions of independence as specified in the Act and SEBI LODR and
are independent of the management and have the integrity, expertise and experience
including the proficiency as required for effectively discharging their roles and
responsibilities in directing and guiding the affairs of the Company.
The Company has received a certificate from M/s. Parikh &
Associates, Practicing Company Secretaries, confirming that none of the Directors on the
Board of the Company have been debarred or disqualified from being appointed or continuing
as Directors of companies by the SEBI, Ministry of Corporate Affairs,
or any such other statutory authority.
BOARD MEETINGS
During the financial year 2022-23, your Board of Directors met 5 times,
in accordance with the provisions of the Act, SEBI LODR and other statutory provisions.
Details of Board Meetings held and the attendance of Directors are
given in the Section titled
E="2">Report
on Corporate Governance,
which forms part of this Annual Report.
COMMITTEES OF THE BOARD
Your Board has established following committees in compliance with the
requirements of the Act and SEBI LODR: (i) Audit Committee, (ii) Nomination and
Remuneration Committee, (iii) Corporate Social Responsibility Committee, (iv) Risk
Management Committee, and (v) Stakeholders' Relationship Committee.
Details of composition of the statutory committees, number of meetings
held and attendance of Committee Members thereof during the financial year, are given in
the Section titled
Report
on Corporate Governance
forming part of this Annual Report.
All recommendations of the Audit Committee have been accepted by the
Board.
Your Board has constituted a Finance Committee comprising of Mr.
Vellayan Subbiah, Chairman of the Board and Mr. Natarajan Srinivasan, Managing Director,
to inter-alia take decisions relating to borrowings, investments and lending from time to
time within such limits / sub-limits as may be decided by the Board.
KEY MANAGERIAL PERSONNEL ("KMP")
Pursuant to Section 203 of the Act, the Key Managerial Personnel of the
Company as at the end of the financial year were:
Mr. Natarajan Srinivasan, Managing Director
Mr. Susheel Todi, Chief Financial Officer
Mr. P Varadarajan, Company Secretary
REMUNERATION POLICY AND CRITERIA FOR DETERMINING THE ATTRIBUTES,
QUALIFICATION, INDEPENDENCE AND APPOINTMENT OF DIRECTORS
Your Company has formulated a Remuneration Policy governing the
appointment and remuneration
of Directors, KMP Senior Management and other employees. The
Remuneration Policy of the Company provides a performance driven and market-oriented
framework to ensure that the Company attracts, retains and motivates high quality
executives who can achieve the Company's goals, while aligning the interests of employees,
shareholders and all stakeholders in accordance with the Murugappa Group's values and
beliefs. The terms of reference of the Nomination and Remuneration Committee includes
formulation of criteria for determining qualifications, positive attributes and
independence of Directors.
The Company's Remuneration Policy is available on the website of the
Company under: https://www. cgglobal.com/assets/pdf ffles/CG Remuneration Policy 21 22.pdf
Your Company has adopted a Board Diversity Policy to reap the benefits
of a broader experience in decision making.
PERFORMANCE EVALUATION OF THE BOARD OF DIRECTORS
In line with the requirements of the Act and the SEBI LODR, an annual
evaluation of performance of the Board, its Committees and individual Directors was
carried out during the year under review. Pursuant to the provisions of Schedule IV of the
Act and Regulation 25 of the SEBI LODR, the Independent Directors of your Company, at
their Meeting held on 1 March 2023, evaluated the performance of Non-Independent
Directors, the Board as a whole, performance of the Chairman; and also assessed the
quality, quantity and timeliness of flow of information between the Management and the
Board.
FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS
Pursuant to Regulation 25 of the SEBI LODR, your Company familiarizes
its Independent Directors with their roles, rights, responsibilities as well as the
Company's business and operations. Moreover, Directors are regularly updated on the
business strategies and performance, management structure and key initiatives of
businesses at every Board Meeting. Details of the programme can be viewed under the
following link available on the Company's website:https://www.cgglobal.com/assets/pdf
files/ Familiarisation Programme for Independent Directors.pdf
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the
financial year under review were on arm's length basis and were in the ordinary
course of business. Hence, disclosure of particulars of
contracts/arrangements entered into by your Company with related parties in Form AOC-2 is
not applicable for the year under review. There were no materially significant related
party transactions during the year which may have a potential conflict with the interest
of the Company at large. The Audit Committee grants omnibus approval for transactions
which are of repetitive nature with related parties.
Related party transactions entered into during the year under review
are disclosed in the notes to the Financial Statements. None of the Directors had any
pecuniary relationship or transactions with the Company, except the payments made to them
in the form of remuneration / sitting fee.
The Company's Related Party Transactions Policy is made available on
the website of the Company under: https://www.cgglobal.com/assets/pdf files/ Related Party
Transaction Policy 1 Apr 2022.pdf
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
Pursuant to the provisions of Section 186 of the Act and Schedule V of
the SEBI LODR, particulars of loans, guarantees given and investments made by your Company
during financial year 2022-23 are given in the notes to the Financial Statements.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
In terms of Regulation 34 of the SEBI LODR read with relevant SEBI
Circulars, new reporting requirements on ESG parameters were prescribed under
Business Responsibility and
Sustainability Report
("BRSR"). The BRSR seeks disclosure on the performance of the Company against
nine principles of the National
Guidelines on Responsible Business Conduct" ("NGRBCs"). As per the SEBI
Circulars, effective from the financial year 2022-23, filing of BRSR is mandatory for the
top 1000 listed companies by market capitalization. Accordingly, for the financial year
ended 31 March 2023, your Company has prepared the BRSR. The BRSR is enclosed separately
and forms an integral part of this Annual Report.
ENTERPRISE RISK MANAGEMENT ("ERM") FRAMEWORK
Company's comprehensive Risk Management Framework involves a
three-tiered approach, taking into account the Enterprise Risks, Process Risks and
Compliance Risks.
Enterprise risk identification and mitigation initiatives are handled
through an on-going process for each of the businesses, as well as for the Company as a
whole. The coverage extends to all key business exposures. After getting a measure of each
such enterprise risk, the mitigation actions are tracked.
The Risk Management Committee of the Board reviews the key risks
associated with the businesses of your Company and their mitigation measures. A detailed
note on ERM is given in the Management Discussion and Analysis, forming part of this
report.
RESEARCH AND DEVELOPMENT ("R&D")
During the year under review, your Company's R&D activities
continued to focus on development of indigenous and energy efficient products.
Power Systems
To support the Government of India (GOI) initiative towards
building and reinforcing Railway Infrastructure in the country, Company developed two new
products 21.6/30.24 MVA, 220/27 kV Trackside Transformer and 1288 kVA MEMU Loco
Transformer for Indian Railways.
Developed Inverter duty transformer for Solar application 12.5
MVA 33/0.630*4 kV with 5 winding and successfully conducted Short Circuit Test.
Developed a new 12kV Ring Main Unit ("RMU") family
Arista - V with side cable entry feature. Type tested and suitable for both
indoor and outdoor installation. It is compact RMU, fitted with robotically welded,
hermetically sealed SF6 gas tank making it suitable to operate in most extreme
environments. With development of Arista family, Company has increased its product
offering range to the Secondary Distribution networks.
Developing design optimization and compact EHV Instrument
Transformer for Indian utilities, aimed at compliance of stringent Seismic stability
specification of 800kV and 420kV EHV bushing to restrict imports and offer indigenous
solution to customers.
In-house development of Silicon Moulded Arrestor for critical
short circuit duty cycle, electrostatics and mechanical requirements by offering
technologically advanced, light weight and easy to handle solution.
Product upgradation in EHV Switchgear by design upgradation and
optimization.
a) 420kV, 63kA Gas Circuit Breaker suitable for -40
?C application. This has resulted in
executing an order from Ukraine and opened opportunity for similar application in many
European countries.
b) 245kV, 50kV Gas Circuit Breaker for higher altitude application.
c) 145kV, 2000A Horizontal Double Break banging type Disconnector.
Indigenously developed and successfully conducted type testing
of 66kV-145kV GIS Surge Arrestor (three phase) and 245kV GIS Surge Arrestor (single
phase). This will help customers to reduce their dependence on imports, reduction in
delivery time, and savings on Forex.
Developed Ultra High Frequency Partial Discharge Sensor (UHF PD
Sensor) which were earlier imported. These UHF PD Sensors are used in 145kV GIS as a
Prediction Tool for Failure Detection. This development reduces the dependency on imports
and supports the
Make in
India initiative of the
Government of India.
Re-layout of 245kV Hybrid GIS by Design optimization resulting
into reduction in space occupied and reduced site Installation time, for customer.
Industrial Systems Motors
Continued to prioritize the development of innovative and
energy-efficient products, with a focus on indigenous solutions and achieved several
milestones, including:
Development of new VFDs with a rating of 75kW and 90kW, which
are designed to operate at higher ambient temperatures and offer the option of flange
mounting, thus optimizing cabinet design.
Creation of a new range of power stacks for domestic and
overseas customers, offering improved efficiency and reliability.
Introduction of a new Wi-Fi connectivity solution that enables
users to control and monitor the performance of their AC drives
using a smartphone application and wireless connection. The solution
also provides easy commissioning, faster support, and status reporting.
Development of a 250W hub motor controller for e-bikes with
features such as pedal assist and speed accelerators for effortless riding.
Successful certification of the super-premium Non safe area (FLP
IIA, IIB, IIC) AC motor IE4 range from ATEX, PESO, BIS for frames 80 to 160, which will
help to reduce energy consumption and carbon footprint.
Launch of the
Entice
series range of AC motors from NS80 to NS132 frame with improved efficiency, aesthetic
appearance and reliability.
Launch of the new SM series alternators for 160 and 180 frames
in line with market demands.
Extension of the 450 frame Alternator range up to 2500 KVA,
catering to a wider range of customer needs.
Development of EV traction and auxiliary motors, with higher
power, meeting superior performance and IP 67 enclosure standards.
Development of Neema D range and Neema premium multi-potential
range motors for overseas customers.
Release of the DC motor 450 and 500 frame, mill-duty motor to
the market.
Implementation of various latest design tools to analyze the
parameters of designed products and achieve cost savings on raw materials.
Provision of retrofitting solutions to customers from our LIM
plant.
Expansion of our range of 10/12 pole large motors in frames 630,
710, and 800, with a specific focus on water sector applications.
Provision of application-driven solutions to the agriculture
sector, such as chaff cutters, areca nut, pulverizers, threshers, etc., through our FHP
plant.
Railways
Indigenously designed and developed 246 kW, 4 Pole, 3 Phase AC
Asynchronous, Axle hung, nose suspended Traction Motor suitable
for IGBT Converter/ Inverter based operation for
Main Line Electrical Multiple Unit with On Board propulsion system
(MEMU-OB) application, in
line with the general design and manufacturing guidelines as specified in IEC 60349-2 and
in accordance with the modern traction practices. Special care has been taken to include
features to make the Traction Motor suitable for operating in harsh and tropical climatic
conditions.
Designed, developed and type tested Composite Converter, which
is an integrated product of 6000 HP Traction Converter and 2X500 kVA Hotel Load Converter
for Indian Railways complying to IEC 61287, IEC 61373, and IEC 60571. This will replace
one diesel generator car, which in turn reduces carbon emission.
Indigenously designed, developed and type tested 150 kVA
Auxiliary Power Converter for
Main Line Electrical Multiple Unit with On Board propulsion system (MEMU-OB) application complying to IEC 61287, IEC
61373, and IEC 60571. Special care has been taken to reduce Total Harmonic Distortion
(THD) at both input and output supply.
Indigenously designed and developed
ergonomic Driver's Desk/Console and Control Panels for
Main Line Electrical Multiple Unit with
On Board propulsion system (MEMU-OB) application considering necessary traction controls, safety controls and
passenger amenity items, positioning of various pneumatic gauges, brake controller etc. in
line with the UIC 651 norms. Special care has been taken to make the Driver's console and
the control panels compliant to fire protection guidelines as specified in EN 45545 and
suitable for excessive shocks and vibration norms as set in IEC 61373.
Indigenously designed and developed 110V DC, 0.44KW DC series
motor with ingress protection IP-67 and AC immunization 400V. This motor is used in drives
of the point mechanism through friction clutch, reduction gears and throw bar when
electric power is supplied.
Indigenously designed and developed external clamp lock assembly
for 60kg Thick Web Switch (TWS) Canted rail and this external locking mechanism is used in
Dedicated
Freight Corridor Corporation (DFCC) and METRO Rail's switching turnout
with 220mm throw point machine application.
CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Details, as required under Section 134 of the Act read with the
Companies (Accounts) Rules, 2014, are given in the prescribed format as Annexure 1 to this
Report.
ENVIRONMENT, HEALTH AND SAFETY ("EHS")
A detailed review of the Environment, Health and Safety measures
undertaken by your Company is given in the BRSR Report, which forms part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of the operations, performance and future outlook of
your Company and its businesses is given in the section titled
Management Discussion and Analysis, which forms part of this Report.
CORPORATE GOVERNANCE
A section on Corporate Governance standards followed by your Company,
as stipulated under Schedule V of SEBI LODR, is enclosed separately.
A certificate from M/s. Parikh & Associates, Practicing Company
Secretaries, regarding compliance with the conditions of Corporate Governance, as
stipulated under SEBI LODR, is annexed to the Report on Corporate Governance.
CORPORATE SOCIAL RESPONSIBILITY
("CSR")
In terms of Section 135 of the Companies Act, 2013 read with CSR Rules,
your Company has during the year 2022-23 spent '69 lakhs being the two percent of the
average net profits of your Company during the three preceding financial years in
accordance with the CSR Policy of the Company.
Annual Report on CSR initiatives as required under the Companies
(Corporate Social Responsibility Policy) Rules, 2014, as amended (
CSR Rules) is annexed as Annexure 2 and forms an integral part of this Report.
Details of the composition of the CSR Committee and CSR Policy of the
Company are also provided in the said Annexure.
REGISTRAR AND SHARE TRANSFER AGENT
Your Company has appointed Datamatics Business Solutions Limited
("DBSL"), an entity which is registered with SEBI, as its Registrar and Share
Transfer Agent. Contact details of DBSL are mentioned in the section titled
Report on Corporate Governance of this Annual Report.
PARTICULARS OF EMPLOYEES
Disclosures pertaining to remuneration and other details as required
under Section 197 of the Act, read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, are given in Annexure 3 to this Report.
In accordance with the provisions of Section 197(12) of the Act, read with Rule 5(2) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
names and other particulars of the employees covered under the said rule shall be made
available to any Member on a specific request made in this regard, by him or her in
writing.
EMPLOYEE STOCK OPTION PLAN 2021
The Shareholders of the Company had, through Special Resolution passed
by Postal Ballot on 23 September 2021, approved the introduction and implementation of
Employee Stock Option Plan 2021 ("ESOP 2021" / "Scheme") and
authorized the Board/ Nomination and Remuneration Committee to issue to the eligible
employees, such number of Options under the ESOP 2021, as would be exercisable into, not
exceeding 2,70,00,000 (Two Crore Seventy Lakhs) fully paid-up equity shares of ' 2/- each
in the Company. ESOP 2021 is in compliance with the SEBI (Share Based Employee Benefits
and Sweat Equity) Regulations, 2021.
The Company has granted 22,87,240 Options to employees upto 31 March
2023. 18,34,100 options were granted in the year 2021-22 and 4,53,140 Options were granted
during the year 2022-23.
The disclosures required to be made under SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 are made available on the website of the
Company under https://www.cgglobal.com. The certificate under the said regulations shall
be made available for inspection in accordance with statutory requirement.
COMPLAINTS RELATING TO SEXUAL HARASSMENT
Your Company has adopted a Prevention of Sexual Harassment Policy and
has also constituted an Internal Complaint Committee in compliance with the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The
Internal Complaint Committee has been constituted region-wise, and is presided by a woman
employee and is comprising of five to seven Company employees with an external member, to
whom employees can address their complaints.
During the year under review, no incident of sexual harassment was
reported.
VIGIL MECHANISM
Your Company has set up a vigil mechanism, viz. a Whistle Blower
Policy, as per the provisions of Section 177 of the Act and Regulation 22 of the SEBI LODR
to enable its stakeholders to report violations, genuine concerns, unethical behaviour and
irregularities, if any, which could adversely affect the Company's operations. No person
has been denied access to the Chairman of the Audit Committee of the Board.
The Ombudsperson appointed by your Board deals with the complaints
received by or against employees, customers and vendors of the Company and supervises the
investigation, ensures appropriate action and submits a report to the Chairman of the
Audit Committee on a quarterly basis.
PUBLIC DEPOSITS
Your Company has not accepted any deposits from public or its members
under Chapter V of the Act and no deposits were outstanding as on 31 March 2023.
SHARE CAPITAL
During the year under review, your Company has allotted 8,52,88,405
equity shares of ' 2 each, fully paid up, as detailed below:
a) 8,52,33,645 equity shares were allotted to Tube Investments of India
Limited (
TII) on 18 May 2022 pursuant to conversion
of balance 8,52,33,645 warrants by TII into equal number of equity shares, and receipt of
the balance amount due on the warrants so exercised by them. Pursuant to the above
conversion, the aggregate shareholding of TII has increased to 58.05% of the share capital
of the Company from 55.57%.
b) 54,760 shares under ESOP Scheme 2021 - 19,760 equity shares were
allotted on 22 December 2022 and 35,000 equity shares were allotted on 9 March 2023 to the
option grantees who had exercised their options.
As at 31 March 2023, the share capital of the Company is as follows:
The authorized share capital of your Company is '
407,60,00,000/- (Rupees Four Hundred Seven Crore and Sixty Lakh) divided into
203,80,00,000 equity shares of ' 2/- (Rupees two) each.
The subscribed and paid-up share capital of your Company stood
at ' 305,42,62,868/- (Rupees Three Hundred Five Crore Forty Two Lakhs Sixty Two Thousand
Eight Hundred Sixty Eight only) consisting of 152,71,31,434 equity shares of ' 2/- (Rupees
two) each.
Your Company's equity shares are listed and traded on BSE Limited and
National Stock Exchange of India Limited.
ANNUAL RETURN
Pursuant to Sub-Section 3(a) of Section 134 and Sub-Section (3) of
Section 92 of the Act, a copy of the Annual Return of the Company as on 31 March 2023 is
placed on the website of the Company and the same is available on the following link:
https://www.cgglobal.com/financials#annual report
REPORTING OF FRAUDS BY AUDITORS
During the year under review, the Statutory Auditors of the Company had
not reported any matter under Section 143(12) of the Act. Therefore, disclosure is not
applicable in terms of Section 134(3)(ca) of the Act.
OTHER DISCLOSURES / REPORTING
a) Issue of equity shares with differential rights
The Company has not issued any equity shares with differential rights
as to dividend, voting or otherwise.
b) Insolvency and Bankruptcy Code ("IBC")
There are no applications or any proceedings pending under the
Insolvency and Bankruptcy Code, 2016 (31 of 2016) against the Company.
c) Onetime settlement with any bank or financial Institution
During the year under review, the Company has not entered into one-time
settlement with any banks or financial institutions.
d) Material changes and commitments affecting the financial position of
your company
There were no material changes and commitments affecting the financial
position of the Company, between the end of the financial year and the date of this
Report.
DIRECTORS
'
RESPONSIBILITY STATEMENT
The Board of Directors confirm that the Company has in place a
framework of internal financial controls and compliance system, which is monitored and
reviewed by the Audit Committee and the Board besides the statutory, internal and
secretarial auditors. To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the following
statements in terms of Section 134(3)(c) of the Companies Act, 2013:
a) the annual Financial Statements for the year ended 31 March 2023
have been prepared
in conformity with the applicable accounting standards along with
proper explanation relating to material departures, if any;
b) that such accounting policies as mentioned in the Notes to the
Financial Statements have been selected and applied consistently and judgment and
estimates have been made that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at 31 March 2023 and of the profit of the
Company for the year ended on that date;
c) that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the Companies Act,
2013 for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
d) that the annual Financial Statements have been prepared on a going
concern basis;
e) that proper internal financial controls to be followed by the
Company have been laid down and that the financial controls are adequate and were
operating effectively;
f) that proper systems have been devised to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating
effectively.
ACKNOWLEDGEMENTS
The Board of Directors wishes to convey its gratitude and appreciation
to all employees for their tremendous efforts as well as their exemplary dedication and
contribution to the Company's performance. The Directors would also like to thank the
Central and State Governments, Shareholders, State Bank of India, Ministry of Corporate
Affairs, Customers, Suppliers, Dealers, Employees and Employee Unions and all other
business associates for their continued support extended to your Company.
On behalf of the Board of Directors
Vellayan Subbiah
Chairman (DIN: 01138759)
Mumbai, 8 May 2023
CG Power & Industrial Solutions Ltd
Company Background
Incorporation Year | 1937 |
Registered Office | C G House 6th Floor,Dr Annie Besant Road Worli Mumbai,Maharashtra-400030 |
Telephone | 91-22-24237777/24237764/24237765,Managing Director |
Fax | 91-22-24237733 |
Vellayan SubbiahNatarajan Srinivasan. Company Secretary | Sanjay Kumar Chowdhary |
Auditor | S R B C & Co LLP |
Face Value | 2 |
Market Lot | 1 |
Listing | BSE,London,MSEI ,NSE, |
Registrar | Datamatics Financial Services Plot No B-5 MIDC ,Part B Cross Lane ,Marol Andheri(E) ,Mumbai-400093 |
CG Power & Industrial Solutions Ltd
Company Management
Director Name | Director Designation | Year |
---|
Natarajan Srinivasan. | Managing Director | 2023 |
Arunachalam Murugappa Arunachalam Murugappan | Director | 2023 |
Vellayan Subbiah | Chairman & Non Executive Dir. | 2023 |
P S Jayakumar | Independent Director | 2023 |
Sasikala Varadachari | Independent Director | 2023 |
Sriram Sivaram | Independent Director | 2023 |
Kalyan Kumar Paul | Director | 2023 |
V R Iyer | Independent Director | 2023 |
Sanjay Kumar Chowdhary | Company Sec. & Compli. Officer | 2023 |
CG Power & Industrial Solutions Ltd
Listing Information
Listing Information |
---|
BSE_500 |
BSE_CG |
BSE_200 |
BSEDOLLEX |
CNX500 |
BSEMID |
CNXMIDCAP |
BSEPOWER |
CNX200 |
BSEALLCAP |
INDUSTRIAL |
BSEMIDSELE |
MID150 |
LMI250 |
MSL400 |
BSEQUI |
NFTYLM250 |
NFTYMC150 |
NFTYMSC400 |
NF500M5025 |
NFTYINDMFG |
NFTYTOTMKT |
NFMC150M50 |
CG Power & Industrial Solutions Ltd
Finished Product
Product Name | Unit | Installed Capacity | Production Quantity | Sales Quantity | Sales Value |
---|
Sale of Products | No | 0 | 0 | 0 | 6441.63 |
Others | No | 0 | 0 | 0 | 77.84 |
Construction Contracts | NA | 0 | 0 | 0 | 34.72 |
Service Revenue | NA | 0 | 0 | 0 | 25.44 |
Others | NA | 0 | 0 | 0 | 0 |
Others Items (Systems) | No | 0 | 0 | 0 | 0 |
Traction Ele,ID and SCADA | NA | 0 | 0 | 0 | 0 |
Excise Duty | NA | 0 | 0 | 0 | 0 |
Discount | NA | 0 | 0 | 0 | 0 |
Brokerage & Commission | NA | 0 | 0 | 0 | 0 |
Adjustment | NA | 0 | 0 | 0 | 0 |
Accessories | Lin | 0 | 0 | 0 | 0 |
Steel Stampings-Electrical | MT | 0 | 0 | 0 | 0 |
Fans-Electric-Venti.Pollution | No | 0 | 0 | 0 | 0 |
Appliances | NA | 0 | 0 | 0 | 0 |
Motors & Alternators | HP | 0 | 0 | 0 | 0 |
Motors & Alternators | No | 0 | 0 | 0 | 0 |
Tranformers, Reactors & Acces. | No | 0 | 0 | 0 | 0 |
Transformers & Reactors | MVA | 0 | 0 | 0 | 0 |
Communication Equipment | Rs. | 0 | 0 | 0 | 0 |
Computer Sys./Software Access. | No | 0 | 0 | 0 | 0 |
Switchgears/Control Equipments | No | 0 | 0 | 0 | 0 |
Lamps-Electric | No | 0 | 0 | 0 | 0 |
Comm Comp Sys Soft &Acces Term | Ter | 0 | 0 | 0 | 0 |
Energy Meter | No | 0 | 0 | 0 | 0 |