A unit of CG Power and Industrial Solutions Limited has signed a definitive agreement to acquire 100 percent of Thiruvananthapuram-based Tosil Systems Private Limited for ₹164.4 million. The acquisition enhances CG Power's capabilities in semiconductor VLSI design, embedded software, and industrial IoT edge solutions.
MUMBAI — CG Power and Industrial Solutions Limited announced on Monday that one of its corporate operating units has entered into a definitive agreement to acquire a 100 percent equity stake in Thiruvananthapuram-based Tosil Systems Private Limited. The transaction, valued at an aggregate consideration of ₹164.4 million (₹16.44 crore), was disclosed through regulatory filings submitted to domestic stock bourses. The buyout represents a strategic expansion by the Murugappa Group-backed engineering major into high-value semiconductor design services, very-large-scale integration (VLSI) engineering, and embedded software architectures, advancing its domestic high-tech manufacturing ecosystem.
Transaction Structure and Definitive Agreement Terms
According to statutory disclosures filed with market authorities, the Tosil Systems acquisition involves the complete buyout of all existing shares from its founding shareholders and early-stage backers.
Acquiring Entity: A designated subsidiary unit of CG Power and Industrial Solutions Limited.
Target Company: Tosil Systems Private Limited (CIN: U72900KL2017PTC048384).
Acquisition Size: 100 percent equity shareholding and voting control.
Total Cash Consideration: ₹164.4 million (₹16.44 crore).
Payment Mode: Cash consideration subject to customary closing conditions and regulatory approvals.
Following the completion of the transaction, Tosil Systems will operate as a wholly owned step-down subsidiary of CG Power and Industrial Solutions Limited, integrating its engineering personnel and proprietary intellectual property into CG Power's industrial automation and electronics divisions.
Target Profile: Capabilities in VLSI, Embedded Systems, and Edge AI
Founded in 2017 and operating from the Technopark technology hub in Thiruvananthapuram, Kerala, Tosil Systems specializes in embedded system design, application development, and semiconductor VLSI engineering.
The company provides comprehensive research and development (R&D) and engineering services across the silicon lifecycle, including:
ASIC and FPGA Design: Application-Specific Integrated Circuit (ASIC) and Field-Programmable Gate Array (FPGA) design, RTL modeling, and physical verification.
System Software & Firmware: Board Support Packages (BSP), embedded Linux kernel development, real-time operating systems (RTOS), and device driver integration.
Industrial & Automotive IoT: High-reliability embedded platforms, sensor fusion, advanced driver-assistance systems (ADAS), and smart connected devices.
Edge AI & Silicon Enablement: Post-silicon validation, edge artificial intelligence model optimization, and hardware-software co-verification for international clients across Europe, Japan, and the United States.
With over 60 specialized technical engineers, Tosil Systems brings established research capabilities that directly complement CG Power's broader electronics and semiconductor roadmap.
Strategic Synergies with CG Power’s Semiconductor Push
The takeover of Tosil Systems aligns with CG Power's multi-year pivot into next-generation industrial electronics, power semiconductors, and advanced packaging infrastructure.
As part of the Murugappa Group, CG Power has been expanding its footprint across industrial motors, power transformers, switchgear, and rail transportation electronics. In parallel, the company has committed significant capital toward establishing semiconductor assembly, testing, and packaging (OSAT) facilities in India under the central government’s semiconductor manufacturing incentive program.
Acquiring specialized in-house design and firmware capabilities through the Tosil Systems acquisition enables CG Power to offer end-to-end solutions—bridging custom silicon architecture and embedded firmware with heavy industrial power apparatus and smart grid hardware.
Impact on Financial Markets and Corporate Stakeholders
For public investors and market participants, the acquisition represents a disciplined capital allocation strategy:
High-Margin Engineering Services: Integrating a specialized design house enhances CG Power’s operating margins by incorporating proprietary software and IP licensing into hardware sales.
Low Balance-Sheet Leverage: The ₹164.4 million consideration is funded through internal corporate accruals without requiring incremental debt financing.
Talent and R&D Moat: Secures an established team of VLSI engineers and embedded firmware developers, reducing recruitment lead times in the competitive semiconductor sector.
Official Sources
According to official regulatory filings submitted by CG Power and Industrial Solutions Limited to the National Stock Exchange of India (NSE) and the BSE Limited, the transaction was approved by company leadership in accordance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements. Corporate background records were confirmed via the Ministry of Corporate Affairs (MCA).
Official Statements
"According to regulatory filings and corporate disclosures submitted by CG Power and Industrial Solutions Limited, the company's operating unit has executed definitive agreements for the acquisition of 100 percent equity shareholding in Tosil Systems Private Limited for a consideration of ₹164.4 million to expand its technological capabilities in embedded systems and semiconductor engineering."
Why It Matters
The acquisition highlights the accelerating trend among traditional Indian industrial conglomerates to backward-integrate into advanced semiconductor engineering and embedded software. For industrial clients, the integration enables smarter, energy-efficient power equipment powered by custom firmware. For investors, it confirms CG Power’s strategic execution in building a vertically integrated electronics and semiconductor platform.
Key Facts at a Glance
Buyer: CG Power and Industrial Solutions Limited (through operating unit).
Target: Tosil Systems Private Limited (Thiruvananthapuram, Kerala).
Stake Acquired: 100 percent equity ownership.
Transaction Consideration: ₹164.4 million (₹16.44 crore).
Core Technology Domain: Semiconductor VLSI design, embedded firmware, Edge AI, and IoT solutions.
Frequently Asked Questions
What is the purchase price for the Tosil Systems acquisition?
The definitive agreement specifies an aggregate cash consideration of ₹164.4 million (₹16.44 crore) for 100 percent equity ownership of Tosil Systems Private Limited.
What core services does Tosil Systems provide?
Tosil Systems specializes in semiconductor VLSI design, FPGA development, embedded Linux firmware, Edge AI integration, and IoT engineering solutions.
How does this deal benefit CG Power and Industrial Solutions?
The transaction equips CG Power with in-house silicon design, testing, and embedded systems talent, supporting its broader semiconductor, industrial automation, and power equipment businesses.
Where is Tosil Systems headquartered?
Tosil Systems is based at the Technopark campus in Thiruvananthapuram, Kerala.
Source: Official regulatory disclosures filed with BSE India and the National Stock Exchange of India (NSE), corporate records from the Ministry of Corporate Affairs (MCA), and corporate registry data from CG Power and Industrial Solutions Limited.
