Company Overview

Crompton Greaves Consumer Electricals Ltd (NSE:CROMPTON) is one of the leading consumer companies in India with a 75+ years old brand legacy. As of February 2016, Crompton Greaves Consumer Electricals is an independent company under professional management and have 2 business segments – Lighting and Electrical Consumer Durables. The company market its products under the “Crompton” brand name in India and select export markets.1

The brand “Crompton Greaves” is one of the oldest brands in the country and has a rich legacy associated with great quality, reliability, superior engineering capability, product design and inspires an immense amount of trust. In its journey as CGCEL Crompton Greaves Consumer Electricals is making the brand more contemporary and are building on its legacy to become a more dynamic, younger and innovative “Crompton”. The company will engineer this by building innovative products, that provide meaningful solutions to consumer needs. Over the last few years, Crompton Greaves Consumer Electricals has launched some breakthrough products like India’s first anti-dust fan and anti-bacterial LED bulb.

The company manage its product portfolio by continuously understanding its consumers better. Consumer insights across categories are critical to sustaining and growing the core product segments and adding new ones. The company work towards getting the right products to market faster and developing long-term product strategies and coherent roadmaps. Crompton products are differentiated, provide meaningful consumer benefits, deliver superior performance, and are designed with consumers in mind. The company's design philosophy ensures the most effective interplay of ergonomics, function, utility and form to provide a portfolio covering a wide spectrum of product feature-benefits as well as price points.


Manufacturing Locations:

  • Goa
  • Vadodara
  • Ahmednagar
  • Baddi



Crompton fans help you stay cool and comfortable at all times. The company provide a wide variety of sizes, designs, colours and aesthetics across the different types of fans to suit every purpose. Innovation, high quality, great design and engineering have ensured its products reach every nook and corner of India as well as other tropical countries.2

  • Ceiling Fans
  • Pedestal Fans
  • Table Fans
  • Wall Mounted Fans
  • Exhaust Fans
  • Kitchen Fans


The company's innovative range of lighting solutions let you create the perfect ambience at home. The company's products are energy efficient and provide superior light output making homes more comfortable.3

  • LED Bulbs
  • Luminaires
  • Lamps

Home Appliances

Make your home comfortable with Crompton’s innovative and state-of-the-art range of home appliances.4

  • Air Coolers
  • Water Heaters
  • Food Preparation
  • Garment Care
  • Power Solutions


Crompton’s extensive range of consumer pumps for household and special applications are sturdy and provide an unfailing and steadfast performance5

  • Residential Pumps
  • Agricultural Pumps
  • Speciality Pumps
  • Solar Pumps


Electrical Consumer Durables Industry in India

The Electrical Consumer Durables (ECD) segment in India is poised for growth owing to rising income levels, increasing urbanisation and improved reach. Rural electrification programmes of Government will drive growth in rural sector. Demand for improved aesthetics and superior technology are driving growth in the premium segment of the industry.6


The domestic fan market continues to grow in line with the economy with annual volumes estimated to be around 65 million units. This product category continues to grow owing to structural demand drivers such as extended summer spells and rising temperatures. Rural penetration is being driven by increased electrification, market penetration and better income levels. Growth in urban households is majorly driven by shorter replacement cycles owing to premiumisation, better ergonomics and energy-saving technologies. The mandatory new energy rating system, will increase demand for compliant products.

Key Growth Drivers:

  • Government Schemes: Government schemes like Integrated Power Development Scheme (IPDS) and Deendayal Upadhyaya Gram Jyoti Yojna (DDUGJY) schemes are anticipated to positively influence the fans market
  • Focus on Energy Efficiency: Starting FY2020, new energy-efficient norms have been mandated by BEE (Bureau of Energy Efficiency). This would require upgradation of current portfolio to new norms by the existing market players. Also, increased awareness on energy savings are driving growth of energyefficient products in the urban households. Energy-compliant products are poised to see multi-fold growth going forward.
  • Performance of Housing Sector: The residential property space has struggled with demand softness over the last few years. As the financing environment along with consumer confidence improves, demand in mid and affordable segments will bounce back. Along with overall revival in housing sector, Government initiatives such as Pradhan Mantri Awas Yojana (PMAY) and Smart City projects will collectively add up to 15 million new houses over the next 2-4 years. The Government has also announced an outlay of Rs 25,000 crore for the completion of stalled housing projects. These initiatives augur well to drive growth in demand for fans.


The water pump industry is estimated to be at Rs 7,500 crore. Rising building construction and industrialisation activities, increasing agriculture activities and depleting groundwater levels will continue to drive demand for water pumps  across India in the longer run

Key Growth Drivers:

  • Growing dependency on groundwater: Growing irregularity of the monsoon is catalysing groundwater dependency with a consequent higher demand for agricultural water pumps.
  • Government Initiatives: Increasing rural electrification along with Government programmes to improve water infrastructure and development of sanitation services across the country will continue to play the role of major growth drivers. Increased focus on energyefficient products will start contributing as a key growth driver in the near future.
  • Solar-powered Water Pumps: The solar energy sector is fast emerging as an attractive industry. Water pumping systems based on solar-based energy are gaining acceptance, backed by Government initiatives. Under Kisan Urja Suraksha evam Utthan Mahabhiyan (KUSUM) scheme, the Government intends to install 27.5 lakh solar-based water pumps over a period of five years that will reduce dependency of farmers on the power grid.


The consumer appliances industry is expected to grow rapidly owing to increasing purchasing power of the growing middle class and continued urbanisation in the country. A part of this growth will be contributed by the rural sector due to improved rural penetration, income levels and electrification. A favourable population composition in terms of increasing number of nuclear families and easier access through online channels will continue to aid growth in demand. Feature-rich products offering convenience and improved aesthetics will drive premiumisation in this segment.

Water Heaters:

The revival of the housing sector in terms of new constructions along with rising income levels will drive growth in Water Heaters industry. Improved brand awareness with respect to technological superiority and willingness to pay a premium owing to higher income levels are driving market share in favour of branded products.

Air Coolers:

The Indian air coolers industry is well positioned to grow on account of rising temperature levels and a growing middleclass. Feature-based products with better technology and performance are driving faster growth of branded products.

Lighting Industry in India

The Indian lighting industry continues to be competitive but exhibited a relative stabilisation of prices in second half of FY20 specifically in the consumer lighting space. Major growth drivers of the industry are rural electrification, infrastructure development, construction of new homes, and consumer trends towards better light. Government schemes such as Deen Dayal Upadhyay Gram Jyoti and UJALA (LED lighting) schemes are a major impetus to the industry’s growth. Connected lighting solutions have found successful application in residential and commercial domains which has added further to the growth of the industry.

Business Segments

Electrical Consumer Durables (ECD) Business

The ECD segment registered a strong double-digit growth till the month of February 2020. However, the nationwide lockdown imposed in March 2020 owing to COVID-19’s spread impacted the growth and tapered the growth rate down to 6% for the full year.


The company continues to retain its leadership position in the fans segment and increased its market share. This was largely driven by the growth of its premium range fans and increasing the availability of its products across the country.

New Launches

Committed to its strategy of consumer meaningful innovations, the company launched the ‘Aura Fluidic’ with a five-year warranty - a first in the industry. Aura Fluidic combines better aesthetics with improved durability. The company launched SilentPro and Energion in the premium range of fans that operate on ActivBLDC technology consuming 50% less energy than conventional fans. SilentPro delivers superior air flow and is two times more silent than a conventional fan.

In the Pipeline

As the new BEE norms become mandatory in FY21, the company is well positioned for transition of its existing portfolio under new norms smoothly. The company will continue to support its innovative products with consumer advertising and focus on strengthening the premium portfolio. It will broaden its product portfolio with technologically-driven solutions and better aesthetics. Brand building activities coupled with deeper sales penetration will further improve availability. The company shall thus continue to maintain its leadership position.


The company continued to grow in domestic and agricultural pumps despite a softening of demand observed during the year owing to the extended monsoon and flooding in parts of eastern India. It witnessed a significant traction in the Mini Crest models. It is increasing focus on Tier 2 and 3 cities through its channel expansion programme.

New Launches

The company has continued to launch new products. In Agricultural pumps, it launched the Ultima series of pumps at an affordable price for the mass market which delivers enhanced performance and a wide voltage pump which is suitable in states having voltage fluctuations. It has also launched a solar-powered agriculture pump which provides 20% to 30% more water output than the required MNRE guidelines. Mini Crest continues to deliver industry-leading growth to the company

Future Plans

The company will continue to leverage its brand name and introduce products in the premium range in both domestic and agriculture pumps. The Government’s pro-solar initiatives such as the PM Kusum scheme has prompted the company to foray into the solar pump business

Consumer Appliances

The company clocked impressive growth in consumer appliances owing to successful consumer innovation across the portfolio in relevant categories, channel expansion in key geographies and investments in increasing brand visibility. The company strives to expand the market in the consumer appliances segment through innovative and differentiated products

Water Heaters

During the last year, water heater portfolio of the company was entirely revamped in line with the innovation strategy of providing meaningful consumer benefits. The new portfolio has yielded great results in FY20 with market share gains and increased volumes. During the year, the company further launched new products such as Regallio, Qube, Rapid Jet and Solarium Vogue

Air Coolers

The company achieved steady growth in the air cooler segment during the year and continued to launch coolers with technological advantages and better aesthetics. It launched the desert cooler range Optimus with superior air delivery, easy drain feature and unique design for easy cleaning. Other launches included the Genie Neo and Marvel Neo.

Other Appliances

In the other appliances’ category, the company manufactures Mixer Grinder and Iron. During the year, the company launched Ameo mixer grinder which provides 10% higher grinding efficiency at 10% lesser mixer body temperature as compared to competition mixers. Brio and Instaglide were launched in the category of irons

Lighting Business

The company’s consumer lighting segment delivered low double-digit growth in volume terms which was offset by price erosion. The B2B segment was impacted by the economic slowdown and witnessed delays in execution of Government and institutional orders. The Lighting business thus delivered marginal decline in value terms for the full year.

The company continued to drive innovation in the consumer lighting business by launching differentiated products with value-added benefits. It has invested in automation of production of LED Lamps at Vadodara plant. In the B2B segment, through value engineering of the product range, improved internal processes and IT enablement through a Lead Management tool, the company continued to strengthen its execution capabilities. Cost optimisation efforts have allowed the company to offer competitive product range to consumers across product segments. The company also bagged the prestigious smart city projects during the year, helping it foray into connected light solutions. Through marketing activities and better geographical reach, the company increased market awareness.

New Launches

The company based on a consumer-led value proposition, has introduced ‘Back up Lamp’ which works even after a power failure. It has two variants: one with an hour of backup capacity and other with four hours of backup capacity. It also launched Super Lumen Led Batten in select regions which delivers 3600 lumens at 36W.

The energy-efficient, 5-star rated LYOR LED bulb and Anti-Bac bulb that kills 85% bacteria have garnered positive feedback and continued to perform well.

Five-Dimensional Growth Strategy:

The company’s strategic objective is to grow faster than the market and becoming a leading brand in all its business segments. It has defined five-dimensional excellence pillars through which it endeavours to achieve its objective. These excellence pillars are Branding, Portfolio, Go-toMarket strategies, Operational and Organisational leadership.

Brand Excellence

The company has been consistently investing in its brand through varied marketing activities. Its advertising campaigns are aimed at positioning the Company as an aspirational organisation that resonates well with the youth. The Company has stepped up investments in Above-the-Line (ATL) marketing and digital advertising for all its business segments. It was for the first time in FY20 when the company ran a television commercial for its newly launched range of innovative and aesthetically superior range of water heaters. The successful campaign was titled as “Perfect Hot Water”.

Portfolio Excellence

The company continues to focus on innovations with meaningful benefits to the consumers. The efforts in portfolio excellence have consistently delivered new products with enhanced product performance and durability, superior aesthetics and improved energy efficiency. The company has invested prudently in augmenting its R&D capabilities, data infrastructure and continues to work on its brand architecture to cater to consumers in each segment. These efforts have yielded positive results as seen in the innovative product launches across all categories. Examples include SilentPro and Duratech in the fans’ category; Solarium Neo, Vogue, Rapid Jet etc. in Water Heaters; Optimus in Air Cooler; Back-up range in LED etc.

Go-to-Market Excellence

The company has developed a Go-to-Market strategy with an objective to achieve a wider distribution network and improve product coverage at each node. It intends to expand beyond Tier 1 and 2 cities and foray into smaller towns and cities with a population of 50,000 to 1 lakh through a structured distribution model with IT enablement. The company is consistently investing in developing its alternate sales channels such as Rural, MOR/E-Commerce and Institutional (CSD/CPC) which have contributed to the overall growth. Rural business, during the year scaled up the team size and improved its penetration. Likewise, MOR strengthened its network of channel partners throughout the country

The Company directly catered to 359 towns with below 1,00,000 population and has appointed 241 channel partners in rural areas. Alongside, the Company has tied up with micro-finance institutions to help rural consumers access easy loans for its products; this is a channel that has the potential to grow strongly in FY21 and beyond. Under trade marketing, besides investing in data tracking technology, the company has also automated the retailer loyalty programme and has focussed on retailer branding.

Operational Excellence

The company’s aim is to deliver the best quality product, at the lowest cost and improve availability. The company has initiated Project Delight with an objective to improve overall quality and become best-in-class. Cost reduction programmes have yielded results across the product lines by engaging various commercial and technical levers. Material availability has been significantly improved leading to better demand fulfilment. These measures have enabled the Company to reduce costs which in turn are prudently channelled to brand promotional activities to drive more business.

Organisational Excellence

The company endeavours to develop a professional and transparent work culture. It has fortified its leadership team and appointed a new Business head for Lighting, a Sales head and a Chief Technology Officer. It increasingly focusses on augmenting its R&D capabilities to launch innovation-driven solutions. A Company-wide employee engagement survey was carried out and actions arising therefrom are being implemented.


The company remains focussed on three key objectives – growing sales faster than the market, operating profit growth at least in line with sales growth and converting all of the profits to cash. It has a strong focus on launching innovative meaningful products, enhancing brand awareness through promotional activities and implementing strong go-to-market strategies. The global COVID-19 outbreak has imposed a recessionary sentiment across the globe and impacted the company’s performance in the last quarter. Challenges posed by epidemic are likely to impact the performance in 2020-21 though the long-term outlook for the industry remains structurally positive. The company has taken precautionary measures amidst the COVID-19 outbreak to safeguard its people and operations. It was amongst the first to enable work from home for all its offices, non-essential travel was stopped and all those who had to travel were required to only use safe modes of travel and avoid public transport. As operations and activities are being allowed to resume, the company is ensuring strict compliance to Government guidelines on health and safety of its workforce. It has implemented a business continuity plan across all organisational departments to ensure smooth operations. To aid continuity in operations, it made a comprehensive plan to conserve cash by cutting all non-essential and avoidable costs.

Increasing urbanisation, the Government’s efforts to revive infrastructure and housing development, rural electrification and rising disposable incomes along with better brand awareness will provide sufficient impetus to the industry’s growth. The company continues to aspire to become one of the leading brands in Electronic Consumer Durables and Lighting.

Financial Highlights

Q3 net down 6% to Rs 151 crore 7

January 22, 2021; Crompton Greaves Consumer Electricals on Friday reported a 6.13 percent decline in consolidated net profit at Rs 151.09 crore for the quarter ended December 2020. The company had posted a net profit of Rs 160.97 crore in the October-December period a year ago, Crompton Greaves Consumer Electricals Ltd (CGCEL) said in a BSE filing.

However, its revenue from operations rose 25.84 percent to Rs 1,348.17 crore during the quarter under review as against Rs 1,071.29 crore in the corresponding period of last fiscal.

"Profit After Tax for Q3FY21 was at Rs 151 crore. Last year PAT included effect of income tax refund and interest thereon. Like to like PAT growth is at 53 percent," the company said in a post-earnings statement.

CGCEL's total expenses stood at Rs 1,165.56 crore as against Rs 949.75 crore earlier, down 22.72 percent. Revenue from the electric consumer durables (ECD) segment was up 31.63 percent to Rs 1,035.91 crore from Rs 786.95 crore.

Revenue from lighting products rose 9.81 percent to Rs 312.26 crore as compared to Rs 284.34 crore in Q3 FY20. "ECD segment continues its strong performance and the business grew across categories and geographies. B2C LED lighting business continues to register improved volume growth with corresponding value growth.

"Lighting B2B activity remained challenging due to slow order pick up from institutional clients," CGCEL Managing Director Shantanu Khosla said E-commerce and rural channels reported increased share in the overall business.

"Cost reduction program delivered strong results driving bottom line faster than topline," Khosla added. Meanwhile, in a separate filing, CGCEL said its board in a meeting held on Friday approved the appointment of Mathew Job, its chief executive officer, as additional director on the board. Job has been designated as executive director and chief executive officer of the company with immediate effect.


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Created by Asif Farooqui on 2020/07/27 05:06
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