Well-poised For Growth

Crompton Greaves Limited (CGL) designs, manufactures and markets electrical products and services related to power generation, transmission and distribution. The company has three primary businesses: power systems, industrial systems and consumer products. Strengths Leadership position: Currently it is India’s leading manufacturer of power transformers, distribution transformers, extra high-voltage and medium-voltage circuit breakers, and gas insulated switchgear. High domestic growth: CGL reported good growth numbers in Q3FY11. Growth in the domestic business was led by the consumer products segment, which grew 30 per cent y-o-y while the industrial segment grew 23 per cent y-o-y. According to a report by Angel Broking, the company has been able to marginally improve its margins despite heightened competition and rising commodity prices owing to higher operational efficiency that resulted in less raw-material consumption and optimal absorption of overheads. The company has been able to improve its operational efficiency by integrating the design and production technologies acquired from its overseas facilities. Growth in overseas business: In Q3FY11, the revenue of CGL’s overseas business grew by nearly 13 per cent year-on-year (y-o-y) in euro terms. Revival in demand for distribution transformers, particularly in the renewable energy space (both solar and wind), accounted for this growth. Healthy order book: At the end of

This article was originally published on June 01, 2011.