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CG Electric Systems Hungary wins EUR 38m order from India

CG Electric Systems Hungary has already delivered the first 765KV transformer, developed by Hungarian specialists and made in Tapioszele, to India, and has received orders for a further thirteen units worth a combined EUR 38m, CEO Zoltan Luspay told MTI.

CG Electric Systems Hungary is to produce a total of fourteen of the transformers, which cost EUR 3.5m each, primarily at the Tapioszele plant, but the Szolnok plant will also be involved, the CEO said, adding that five units are already under production.

The CEO noted that although they received assistance from some multinational companies as well as some members of the group (Pauwels and CG), it is basically an independent Hungarian product both in terms of design and manufacturing. It cost HUF 1.2bn to develop the prototype and the related infrastructure, of which HUF 300m was covered from an EU grant. 

 Although transformers of similar performance and quality are manufactured in Europe in Germany and Sweden, CG Electric Systems faces its real competition from Chinese manufacturers, who also bid in Indian tenders, the CEO said, adding that with the current pace of infrastructural developments in India, hundreds of similar transformers will be needed in the near future.

"If our Indian tenders are successful, we will increase production capacity to make two units per month", the CEO said. The company has hired fifty new workers into the Tapioszele plant this year, increasing the number of employees to 450 at that unit and 800 at company level.

The Hungarian company Ganz Transelektro Electric Zrt joined the Indian Crompton Greaves group in 2006. CG is currently one of the world's biggest transformer manufacturers. In recent years, the group has been joined by companies such as Pauwels, Microsol, Sonomatra and MSE.

Luspay said CG Electric Systems Hungary had sales revenue of EUR 71.2m in the 2008-09 business year, with net profit of EUR 1.9m and operating profit of EUR 7.6m. In the business year 2009-10, sales revenue rose to EUR 77.6m, net profit increased to EUR 12.4m and operating profit to EUR 8.3m.