Who Owns CG Power and Industrial Solutions Company?

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Who Owns CG Power and Industrial Solutions?

Understanding a company's ownership is key to grasping its strategic direction and accountability. A significant shift occurred in 2020 when the Murugappa Group acquired CG Power and Industrial Solutions, following past financial issues. This acquisition ushered in a new era for the Indian multinational.

CG Power and Industrial Solutions, with 87 years in electrical engineering, offers a wide array of products, including transformers and motors. The company also provides EPC services, contributing to its strong market presence.

The Murugappa Group now steers CG Power and Industrial Solutions. This group is a prominent Indian conglomerate with diverse business interests.

The origins of CG Power and Industrial Solutions trace back to the late 19th century with pioneering figures like Col. R. E. B. Crompton, who founded R.E.B. Crompton & Company in 1878, and James Greaves, founder of Greaves Cotton and Company in 1859. The company's formal incorporation in India as Crompton Parkinson Works Private Limited took place on April 28, 1937, in Mumbai.

Early Indian Roots

The company's journey began with the establishment of key entities that would eventually merge and evolve. These early foundations laid the groundwork for its future expansion in the industrial sector.

Formal Incorporation

The formal establishment of the company in India occurred in 1937. This marked a significant step in its operational presence and legal structure within the country.

Acquisition by Thapar Group

A pivotal moment in the company's ownership history was its acquisition in 1947 by Lala Karam Chand Thapar. This event integrated the company into the broader Thapar Group conglomerate.

Transition to Public Entity

The company transitioned to a public entity in 1960, signifying increased public participation in its ownership. This was followed by a name change to Crompton Greaves Limited in 1966.

Foundational Ownership Change

While specific details of initial founder equity are scarce, the 1947 acquisition by the Thapar Group represented a major shift. This acquisition underscored the ambition of an Indian industrial family to cultivate a diverse business portfolio.

Industry Prominence

Following its public listing and name change, the company solidified its position as a key player in the Indian electrical industry. Its growth trajectory was significantly influenced by this foundational ownership structure.

The acquisition by Lala Karam Chand Thapar in 1947 marked a significant turning point, integrating the company into the Thapar Group. This strategic move by the prominent Indian industrialist aimed to build a diversified business empire, with the company officially becoming a public entity in 1960 and adopting the name Crompton Greaves Limited in 1966. While detailed records of the very earliest equity distribution among the original founders from the 19th century are not widely available, the Thapar Group's takeover represented a substantial foundational ownership change, reflecting a vision for national industrial development.

Key Ownership Milestones

The ownership history of CG Power and Industrial Solutions is marked by significant transitions, from its early establishment to its integration into a major Indian conglomerate.

• Founding of precursor companies in the mid-to-late 19th century.
• Formal incorporation in India in 1937.
• Acquisition by the Thapar Group in 1947.
• Becoming a public company in 1960.
• Name change to Crompton Greaves Limited in 1966.

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The ownership of CG Power and Industrial Solutions has seen significant shifts, notably the demerger of its consumer business and a pivotal acquisition by the Murugappa Group in 2020, following governance issues under previous management.

The journey of CG Power and Industrial Solutions' ownership is marked by strategic realignments and a significant change in control. Initially part of the Thapar Group, the company underwent a demerger in 2016, separating its consumer products division. This was followed by a substantial acquisition in September 2020, which fundamentally altered its ownership structure and governance framework.

Key Ownership Milestones

The ownership of CG Power and Industrial Solutions has evolved significantly, culminating in the current structure. These changes reflect strategic decisions and responses to market dynamics and corporate governance imperatives.

• The company went public in 1960, initially under the Thapar Group.
• A demerger in 2016 separated the consumer goods business.
• In September 2020, Tube Investments of India Ltd (TIIL), part of the Murugappa Group, acquired a controlling stake.
• This acquisition followed governance lapses under the previous management.
• As of August 2025, the Murugappa Group remains the majority shareholder, demonstrating a commitment to the company's future, aligning with their Mission, Vision & Core Values of CG Power and Industrial Solutions.

The current ownership landscape of CG Power and Industrial Solutions is dominated by the Murugappa Group, which holds a promoter stake of 56.38% as of August 8, 2025. This holding, primarily through Tube Investments of India Limited, signifies a strong commitment from the conglomerate. Foreign Institutional Investors represent a significant portion of the remaining ownership with 12.67%, followed by Mutual Funds at 10.33%. Other Domestic Institutions hold 5.99%, and the retail public accounts for 14.61%. This diversified shareholding pattern, with a clear majority held by the Murugappa Group, underscores the stability and strategic direction influenced by its primary owners, who are known for their robust corporate governance practices.

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The current Board of Directors for CG Power and Industrial Solutions Limited consists of seven members, including executive, non-executive, and independent directors. Mr. Vellayan Subbiah chairs the board as a Non-Executive Non-Independent Director, with Mr. Amar Kaul serving as the Managing Director & CEO. Mr. M. A. M. Arunachalam also sits as a Non-Executive Non-Independent Director, representing the Murugappa Group.

CG Power and Industrial Solutions operates under a standard one-share-one-vote system, typical for publicly listed Indian entities. There are no indications of dual-class shares or special founder shares that would alter voting power. However, the Murugappa Group, through Tube Investments of India Limited, holds a significant majority promoter stake of 56.38% as of August 2025. This substantial ownership grants the promoter group effective control over strategic decisions and board appointments. The company's governance framework was significantly reshaped following financial irregularities identified in 2019, which led to the departure of the former chairman. The Murugappa Group's acquisition and subsequent board restructuring were aimed at rebuilding confidence and enhancing corporate governance, with the current board's predominantly independent composition fostering robust oversight and encouraging improved performance.

Understanding CG Power's Ownership and Board Structure

The ownership structure of CG Power and Industrial Solutions is largely determined by its promoter holding. The board's composition reflects a commitment to strong corporate governance.

• The Murugappa Group is the majority shareholder, holding 56.38% of the company's shares as of August 2025.
• Tube Investments of India Limited is the entity through which the Murugappa Group exercises its control.
• The board includes a mix of executive, non-executive, and independent directors.
• Independent directors are professionals of international repute, ensuring diverse perspectives.
• The company follows a one-share-one-vote principle.
• Recent governance reforms followed past financial irregularities.
• For more details on the company's journey, refer to the Brief History of CG Power and Industrial Solutions.

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The ownership landscape of CG Power and Industrial Solutions has seen significant shifts, primarily influenced by the Murugappa Group's strategic acquisition. This has stabilized the company and paved the way for expansion, with recent capital infusions and new ventures reshaping its stakeholder profile.

The acquisition of a controlling stake by Tube Investments of India Ltd (TIIL), a part of the Murugappa Group, in September 2020 for ₹700 crore marked a crucial turning point for CG Power and Industrial Solutions. This move rescued the company from financial distress and initiated a period of strategic realignment and growth. The promoter's shareholding, which stood at approximately 58.06% in the June 2025 quarter, saw a slight dilution to 56.38% following a Qualified Institutional Placement (QIP) in July 2025. This QIP successfully raised around ₹3,000 crore through the allotment of 4,54,54,545 equity shares at ₹660 per share, bolstering the company's financial foundation.

Promoter Holding Trend

The promoter's shareholding in CG Power and Industrial Solutions has seen a minor adjustment. It decreased from approximately 58.06% to 56.38% between the June 2025 quarter due to a recent capital raise.

Institutional Investor Activity

Institutional investors, particularly Mutual Funds, have increased their stake in the company. Their holdings grew from 8.67% to 8.93% in the June 2025 quarter, indicating growing confidence in the company's prospects.

Strategic Expansion and Joint Ventures

The company is actively pursuing growth in new sectors, including a significant joint venture for an Outsourced Semiconductor Assembly and Test (OSAT) facility. This venture, with a proposed investment of ₹7,600 crore over five years, positions the company in the high-growth semiconductor industry.

Management Outlook and Performance

Management is optimistic about future growth, aiming to double the business size in sales and profit within four to five years. This outlook is supported by capacity expansions and new ventures, as evidenced by a 11% year-over-year increase in consolidated net profit to ₹267 crore for Q1 FY26.

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