CG Power targets 70% G2 utilization and potential $500 million revenue
CG Power (part of Murugappa Group) is betting big on its new semiconductor packaging facility, aiming to achieve 70% utilization at its larger semiconductor packaging facility (G2) in about four years, with annual revenue from the unit potentially around $500 million.
Chairman Vellayan Subbiah shared that advanced chip packaging, especially for AI tech, brings in much higher prices than older chips, making this a smart move.
CG Power holds over ₹14,000Cr orders
With global demand for AI chips surging, Subbiah explained, "The entire packaging space itself is in short supply right now."
CG Power has already invested in its semiconductor packaging facility. Meanwhile, their power business is booming too: they're sitting on over ₹14,000 crore in pending orders and are set to commission a new transformer manufacturing facility in Madhya Pradesh next week, which could become the largest transformer plant in India.
On the finance side, Cholamandalam Investment (another Murugappa company) is shifting focus toward housing and gold loans as vehicle loans take a back seat.