MUMBAI, India, October 05, 2024: CG Power and Industrial Solutions Limited (CG), a leader in the electrical engineering industry and a part of the Murugappa Group, has announced its acquisition of the Radio Frequency (RF) components business from Renesas Electronics Corporation. This strategic acquisition marks CG’s significant entry into the semiconductor design and development space, a high-growth and high-profitability sector.
An asset purchase agreement was signed on October 4, 2024, between CG Power and Industrial Solutions Limited and Renesas Electronics America Inc., a subsidiary of Renesas, along with other affiliated entities. The deal involves the transfer of intellectual property (IP), tangible assets, and select employees in semiconductor design, marketing, and applications from Renesas to CG. The completion of this acquisition is subject to regulatory approvals and other customary conditions.
Strategic Significance of the Acquisition
Vellayan Subbiah, Chairman of CG Power and Industrial Solutions Limited, highlighted the importance of this acquisition for India’s semiconductor industry: “A significant number of semiconductor designers globally are Indians. Through this acquisition, we aim to enhance India’s presence in the semiconductor design and development space.”
Davin Lee, Senior Vice President and General Manager of the Analog and Connectivity Group at Renesas, added, “This agreement with CG will provide the opportunity for our RF team to expand. We are pleased that CG will deliver outstanding RF technology and world-class support to our customers.”
About CG Power and Industrial Solutions
CG Power and Industrial Solutions Limited is a major engineering conglomerate headquartered in Mumbai, specializing in industrial and power systems. The company manufactures a wide range of products, including traction motors, propulsion systems, induction motors, transformers, and more, serving sectors like Indian Railways, industrial, and power industries. Recently, CG expanded into consumer appliances, producing fans, pumps, and water heaters.
With nine manufacturing plants across India and one in Sweden, CG boasts a wide reach and employs over 3,100 individuals. For the fiscal year 2024, the company reported consolidated revenues of ₹8,046 crores (USD 964 million).
This acquisition signals a new chapter in CG’s growth strategy, positioning the company at the forefront of India’s semiconductor design and development industry.
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