CG Power acquires stake in GG Tronics for enhancing Rail Safety with KAVACH System

New Delhi, India (Metro Rail Today): CG Power and Industrial Solutions Ltd. has made a strategic move by acquiring a 55% stake in G.G. Tronics India Pvt. Ltd., marking a significant advancement in its railway sector capabilities. This acquisition, valued at up to Rs. 319.38 crores, is set to bolster CG Power's position in the market and expand its offerings in rail safety technologies.

CG Power, a prominent player in the electrical engineering industry with over 86 years of experience, has completed the acquisition of a majority stake in G.G. Tronics (GGT). This investment underscores CG Power’s commitment to enhancing its railway product portfolio and integrating advanced safety solutions.

G.G. Tronics is renowned for its expertise in railway transport safety, particularly in the development of the Train Collision Avoidance System known as ‘KAVACH’. This system is crucial for improving rail safety and preventing accidents through advanced technology.

The acquisition aligns with CG Power’s strategic goal to broaden its range of railway products by venturing into adjacent and growth-oriented sectors. The integration of GGT's specialized knowledge in electronic signaling and train safety systems will enable CG Power to pursue innovative rail safety projects more effectively.

Mr. Natarajan Srinivasan, Managing Director of CG Power and Industrial Solutions Ltd., commented, “This acquisition is a pivotal step in reinforcing our position in the railway industry. It highlights our dedication to advancing our product portfolio with cutting-edge safety technologies like the ‘KAVACH’ Train Collision Avoidance System. We are also focusing on innovations such as the Moving Block System for line capacity enhancement, Electronic Interlocking for Indian Railways, and CBTC for metro rail systems. By integrating GGT’s capabilities, we aim to deliver increased value and reliability to our clients in the Indian Railways sector while supporting our ‘Make in India’ initiative and exploring international market opportunities.”

Mr. N. Manjunath, Founder of G.G. Tronics, expressed enthusiasm about the partnership: “Aligning with CG Power allows us to leverage their advanced manufacturing and engineering expertise, which will support our growth and strengthen our position in the railway safety signaling sector. This collaboration will enable us to expand our geographic reach, achieve economies of scale, and optimize supply chain management. The synergies between CG’s expertise in locomotives, power electronics, propulsion systems, and electricals with GGT’s specialization in railway signaling will drive technological integration through joint R&D efforts and facilitate our expansion into global markets.”

CG Power’s acquisition of a 55% stake in G.G. Tronics India significantly enhances its railway portfolio and rail safety capabilities. The integration of GGT’s expertise, particularly in the KAVACH system, positions CG Power to drive innovation and strengthen its role in the rail safety sector, paving the way for future advancements and global expansion.