CG Power & Industrial Solutions announced on Tuesday that it has received a ₹450 crore order to supply railway products for Vande Bharat trains. The company also shared that this order includes a 35-year service agreement as part of a long-term contract.
Order Details
According to a BSE filing, CG Power & Industrial Solutions Ltd. has signed a long-term supply agreement with Kinet Railway Solutions Ltd. for supplying and servicing railway products. These products include motors, transformers, and other components.
The first order is for 10 Vande Bharat trains, with a value of ₹400-450 crore. Currently, 136 Vande Bharat trains are operating across India, and their network is expanding rapidly.
Company Background
- CG Power has been in the railway sector for 86 years.
- It provides traction machines, rail transportation traction electronics, and other railway systems.
- The company operates in two divisions: Industrial Systems and Power Systems.
- Since November 2020, CG Power has been a part of the Murugappa Group.
Stock Market Performance
On Tuesday, CG Power’s stock closed at ₹612.50, up by 2.63%.
- The stock reached a high of ₹613 and a low of ₹583.05 during the trading session.
- In the last five years, the stock has gained 11,793.20%.
- Over the last 12 months, it has increased by 30.47%.
This new ₹450 crore order and long-term contract could further boost the company’s growth in the railway sector.