Murugappa's N Srinivasan on CG Power's Rs 1 Trillion Revival from Wild Risk

• Murugappa Group acquired distressed CG Power in Nov 2020, facing no cash, investigations, and large tax demands.
• N Srinivasan, a Murugappa veteran, led the dramatic turnaround, transforming CG Power to a valuation over Rs 1 trillion.
• Murugappa's decision was based on CG Power's fundamentally strong underlying businesses, despite corporate mismanagement.
• Key strategies included settling creditors, recasting accounts, overhauling procurement (Project Mudra), and implementing operational efficiencies (Project Lean).
• The company became virtually debt-free with surplus cash, improved margins, regained market share, and quashed a Rs 1,000-crore tax demand.

Why It Matters: Murugappa Group's CG Power revival offers a blueprint for corporate turnarounds.