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The Murugappa Group company, CG Power and Industrial Solutions Limited will expand its power transformers and distribution transformer units at an outlay of Rs 126 crore.

The company closed the third quarter of FY23 with a net profit of Rs 242.75 crore down from Rs 359.61 crore logged during the previous year corresponding period.

In a regulatory filing, the company said its Board had approved thean investment of Rs 126 crore to expand the power transformers and distribution transformer units at Malanpur and Bhopal.

The proposed expansion would increase the capacity from 17,000 MVA to 25,000 MVA for power transformer and from 6,900 MVA to 9,900 MVA for distribution transformers.

The current capacity utilisation is around 65 per cent. The expansion project is expected to be implemented within a period of 15 months and will be funded through internal accruals.

The expansion is proposed considering the expected increase in demand for transformers, the company said.