Last week, CG Semi Private Limited, a subsidiary of CG Power and part of the Murugappa Group, launched its first OSAT facility in Sanand. With this, CG Semi became one of India’s first full-service OSAT providers, bolstering the country’s semiconductor manufacturing ecosystem.
Backed by government and industry collaboration, the company is investing over Rs 7,600 crore (~USD 870 million) in two facilities—G1 and G2—that are expected to create more than 5,000 jobs.
The first facility, recently inaugurated, will operate at a peak capacity of 0.5 million units per day. The second facility, currently under construction, aims to scale up to 14.5 million units per day by 2026.
Adding to the momentum, global brokerage Morgan Stanley initiated coverage on CG Power earlier this week, highlighting it as a key proxy for India’s manufacturing growth story.
The brokerage cited CG Power’s strong position in motors, its power systems franchise, and expansion into railways and semiconductors as primary growth drivers. It forecasted a 34% CAGR in profit after tax between FY25 and FY28—the fastest among its EPC and capital goods coverage universe.By segment, Morgan Stanley expects CG Power’s industrials business to post a 14% revenue CAGR and 15% EBIT CAGR during FY25–28, while the power systems division is projected to deliver a 35% revenue CAGR and a 42% EBIT CAGR.Also read: Raamdeo Agrawal advocates for bold reforms in India amid US tariff challenges
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