“CG has always had a global DNA. Our manufacturing operations span across India and Europe catering to customer demand across all major continents, including the Americas, Europe, Africa and Asia. What has changed in FY26 is the ambition and momentum behind our international growth,” he said in the company’s latest annual report.
CG Power and Industrial Solutions, headquartered in Mumbai is an 89-year-old global engineering company with a strong presence across power systems, industrial systems, and semiconductor solutions. Since November 2020, the Company has been a part of the Murugappa Group, one of India’s most respected business conglomerates.
“Export order bookings more than doubled year-on-year. The single largest order in CG’s history was not a domestic order, rather it was a Rs 900 crore contract to supply power transformers for a hyperscale data centre in the United States,” Subbiah pointed out.
“Our drives and automation business in Europe continues to serve markets across the continent and beyond,” he said.
“The world’s power infrastructure needs rebuilding and expanding, and the focus on energy transition is a global phenomenon. This is driven by the increasing demand for data centres and grid modernization efforts,” Subbiah said.
CG’s transformer capacity expansion to approximately 1,20,000 MVA is not sized for the Indian market alone; it is sized for the global opportunity. The same applies to our semiconductor investments: the supply chain diversification driving India’s semiconductor mission is a global imperative, and our capacities in this space are designed to serve customers globally, he added.
“The most consequential changes in CG’s addressable markets are structural, not cyclical. India’s energy transition, railway modernisation, the rise of data centres and electronics manufacturing, and the country’s growing role in global manufacturing are all multi-decade themes,” Subbiah noted.
Globally, the proliferation of AI infrastructure, the drive toward higher energy efficiency, and the reconfiguration of semiconductor supply chains are equally durable forces, he added.
“CG’s businesses are not peripheral beneficiaries of these shifts — they are foundational to them. Power transformers and switchgear enable the grid infrastructure the energy transition demands. Motors and drives power a more efficient, lower carbon industrial economy. Rail systems underpin one of the world’s largest modernisation programmes. And semiconductors sit at the intersection of every technology curve shaping the next decade. CG’s portfolio is aligned with every significant vector of this demand, both at home and internationally,” Subbiah said.
CG’s entry into semiconductors through Axiro in FY2025 and the launch of CG Semi’s advanced OSAT facility (G1) in August 2025, reflects a longer arc of our strategic ambition, he said.
As India’s semiconductor mission gains credibility and institutional momentum, backed by sustained policy support from the Government of India through various initiatives, the company is building capabilities across both design and manufacturing through Axiro and CG Semi, Subbiah said.
The OSAT project is being developed to support a capacity of up to 14.5 million chips per day, reflecting our ambition to build globally competitive semiconductor capabilities. The global imperative to build resilient, geographically diversified semiconductor supply chains is precisely what creates the opportunity for CG Semi to serve international customers at scale, he said.
“Semiconductors are a long-gestation business that demand patient capital, technological depth and sustained execution. We are approaching this opportunity with a long-term perspective, with the ambition of building globally competitive capabilities that contribute meaningfully to India’s semiconductor journey,” Subbiah said.
“FY27 will bring its own complexities and uncertainties. However, the structural forces driving demand for CG’s products, including energy transition, infrastructure investment, industrial modernisation, AI-driven data centre expansion, and semiconductor localisation, are intact,” he said.
“CG enters this environment with expanded capacity, strong order visibility, a growing export base, and an organisation that has demonstrated its ability to perform under pressure,” Subbiah said.
“FY26 unfolded against a backdrop of significant global disruption. The outbreak of conflict in the Middle East introduced fresh volatility in commodity markets, particularly copper, steel, and crude oil. It also raised energy costs and tightened global supply chains at a time when the world was still adjusting to the trade policy and tariff-related disruptions of 2025,” Amar Kaul, Managing Director and CEO, CG Power, said.
For an industrial manufacturer with a global footprint, this demanded agility, pricing discipline, and supply chain resilience in equal measure, he said.
Despite the disruption, FY26 marked CG’s strongest standalone financial performance, Kaul said.
“Semiconductors represent one of the most significant industrial opportunities of our generation. Global demand is accelerating driven by digitalization, artificial intelligence, electrification and connectivity, while nations increasingly seek resilient and diversified supply chains,” he added.
“India is well positioned to participate in this shift, supported by strong policy momentum, a growing electronics manufacturing ecosystem and rising domestic demand”, Kaul said.
“FY27 begins with the strongest order book in CG’s recent history, new manufacturing capacities coming online, and deepening presence in global markets,” he noted.
“India’s infrastructure investment cycle, energy transition, and industrial modernisation agenda remain structurally intact. Global supply chains continue to shift in India’s favour,” Kaul said.
“Commodity markets remain volatile. Geopolitical uncertainty is unlikely to abate quickly,” he said.
“Competition is intensifying across our segments. But we enter FY27 with a clear Purpose, strong Values, a proven execution framework, Kaul added.