CG Power to start creating cash next year and pay debt: Tube Investments MD

In an interview with Business Standard, Vellayan Subbiah, MD, spoke on how the acquisition fits in the firm's strategy and how it plans to turn around CG Power

Tube Investments of India (TII) of the Murugappa Group has acquired debt-ridden CG Power for Rs 1,700 crore as part of its de-risking strategy from auto business. Managing Director Vellayan Subbiah spoke to T E Narasimhan on how the acquisition fits in the firm’s strategy and how it plans to turn around CG Power. Edited excerpts:
 

What is the rationale behind CG Power acquisition and how will it help TII?
 

We started looking at areas of growth for TII about two and a half years back. Organically, we can grow it at around 6-8 per cent a year over a