CG Power and Industrial Solutions, has entered into definitive agreements to acquire a 55% stake in G.G.Tronics India Private Limited (GGT) for Rs 319.38 crore.
Bengaluru-based G.G.Tronics, specialises in designing, manufacturing, supplying, and installing Electronic Safety Embedded Signalling Systems for the Railway Transportation segment. Among its notable offerings is the Train Collision Avoidance System (TCAS), also referred to as Automatic Train Protection Systems (IRATPS) or 'KAVACH,' for which GGT is a developmental vendor and currently, is currently in the advanced stage of getting an approval for the latest version (4.0) along with Long-Term Evolution (LTE) compatibility, from the Research Designs and Standards Organisation (RDSO), Indian Railways.
GGT’s product lineup also includes Single & Multi Section Digital Axle Counters and High Availability Digital Axle Counters, both certified by RDSO and compliant with CENELEC SIL 4 standards. In addition to its diverse product range, GGT provides comprehensive services for system and software verification and validation for railway signalling products and projects.
This acquisition is in line with CG’s strategic intent to expand its Railway product portfolio by diversifying into closely related or adjacent areas poised for growth. The integration is anticipated to leverage synergies between the companies. CG's extensive expertise in manufacturing, engineering, and project management, complemented by GGT's specialised knowledge in Railway Transport Safety, particularly in the Train Collision Avoidance System 'KAVACH,' and embedded systems will enable CG to actively pursue ‘KAVACH’ and other Rail Safety projects, in the areas of Electronic Signalling Sector through this vehicle.