CG Power and Industrial Solutions Ltd. (CG Power) has proposed to more than double the manufacturing capacity of Low-Tension Motor plants at Ahmednagar and Goa in a phased manner at an outlay of ₹230 crore, considering the future demand for AC motors.
Currently, CG Power has a capacity to manufacture 9.93 lakh LT Motors per annum. Post expansion, it would increase to 19.92 lakh units, the TII subsidiary said in a regulatory filing.
The current capacity utilisation is about 80%. The expansion would be implemented in two phases spread over four years and funded through internal accruals.
CG Power, meanwhile, posted a 66% increase in its standalone net profit for the second quarter ended September to ₹178 crore from the year-earlier period following improved sales realisation. Free cash flow generated for the quarter was ₹221 crore.
During the period under review, sales grew by 17% to ₹1,588 crore, of which Industrial Solutions segment accounted for ₹1,094 crore.
On Wednesday, the board considered the reappointment of N. Srinivasan as MD for one more year till November 25, 2023.
The board also approved the Scheme of Arrangement for transfer of ₹400 crore from General Reserve to Retained Earnings subject to regulatory and statutory approvals, to offset the accumulated losses.
There is no outflow of cash from the company on account of the scheme nor it will have any adverse impact on the interests of the shareholders, creditors or stakeholders.