Crompton Greaves Consumer Electricals Share Price

Crompton Greaves Consumer Electricals Ltd

Crompton Greaves Consumer Electricals Limited (CGCEL), a prominent player in India's consumer electricals market, is one of the leading companies in the Electrical Consumer Durables (ECD) and Lighting segments. With a diversified range of products that include fans, lamps, lighting solutions, household appliances such as water heaters, mixer grinders, toasters, and irons, CGCEL has established itself as a key market leader in India. The company is also highly regarded for its innovations in the domestic pump and street lighting segments, further cementing its strong position in the industry. CGCEL operates several manufacturing plants located in Goa, Vadodara, Ahmednagar, and Baddi, contributing significantly to its extensive product offerings across various consumer electrical categories.

Foundation and Demerger from Crompton Greaves

Crompton Greaves Consumer Electricals Limited was originally part of Crompton Greaves Limited, which was a well-known multinational engineering company. However, in 2015, CGCEL emerged as a separate entity following the demerger of Crompton Greaves' Consumer Electricals Business. This move allowed the company to focus on its consumer products segment, which eventually became an independent public limited company. CGCEL was formally incorporated on February 25th, 2015, and went on to list its shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on May 13, 2016. The demerger process allowed the company to build on its legacy, focused solely on the consumer electricals and lighting market.

Innovations and Product Launches

CGCEL has continually driven growth and innovation through new product introductions and technological advancements. One of the most significant innovations came in October 2016, when the company launched India's first anti-dust ceiling fans. These fans are designed with advanced nanotechnology-based paint, providing hydrophobic and oleophobic properties that reduce dust accumulation by up to 50% compared to regular fans. This innovation resonated with the Indian consumer's desire for cleaner, more efficient home appliances.

Along with its fans, CGCEL also introduced cost-effective LED lighting solutions in the same period. These products have become increasingly popular in India, as they offer energy efficiency and long-lasting performance, addressing the growing demand for sustainable lighting options. The company further strengthened its foothold in the lighting market with the introduction of new products and the incorporation of cutting-edge technologies such as the Internet of Things (IoT).

Partnership with Gooee and Expansion into IoT

In December 2016, CGCEL formed a significant partnership with Gooee, a UK-based company that developed the world’s first full-stack operating platform to connect lighting manufacturers with their customers via IoT. This collaboration marked CGCEL’s entrance into the world of connected lighting solutions, offering enhanced functionality and value for its lighting products. With Gooee’s innovative lighting ecosystem and CGCEL’s robust design and execution capabilities, the partnership is set to revolutionize the lighting industry by offering advanced IoT-based solutions to customers.

Growth in the Lighting Sector

By 2017, CGCEL had cemented its position as a dominant player in the Indian lighting industry, ranking as the second-largest lighting company in the country. This achievement was a direct result of the company’s strategic product innovations and market expansion efforts. CGCEL's lighting division continued to thrive by introducing new products and technologies that cater to the growing demand for energy-efficient and aesthetically designed lighting solutions.

Acquisition of Kenstar Brand and Business

In October 2017, CGCEL announced its decision to acquire the Kenstar brand and business from Videocon Industries. This move was in line with the company’s efforts to diversify its product portfolio and enhance its presence in the kitchen appliances market. However, in November 2017, CGCEL informed stock exchanges that its bid for the acquisition of Kenstar had expired, and the company decided not to extend the bid. Despite this setback, CGCEL’s commitment to strategic acquisitions and expansion remained strong.

Subsidiary Expansion and New Ventures

CGCEL’s efforts to expand and diversify continued into 2018 with the incorporation of two wholly owned subsidiaries: Pinnacles Lighting Project Pvt. Ltd. and Nexustar Lighting Project Pvt. Ltd. These subsidiaries were set up for the implementation of a Greenfield Street Lighting Project in Odisha, which was a step toward strengthening the company’s presence in the government and infrastructure sectors. By venturing into large-scale projects like street lighting, CGCEL further solidified its status as a comprehensive player in the electricals and lighting industries.

Recent Product Launches and Acquisitions

The company continued to innovate in 2022 with a variety of new product launches across its key segments. CGCEL introduced multiple air cooler variants such as the Cool Breeze, Jedi Personal, and Zelus Desert coolers, addressing the growing demand for cooling solutions in India's hot climate. It also launched new ceiling fans, including the Star Lord 3-in-1, Star Miranda, Star Stylus, and Star Cosmos, catering to various consumer preferences. Other notable product innovations included a range of LED lights like the Backup Lamps, Deco Auto Color, and Decoray, which combined both aesthetics and energy efficiency.

One of the most significant developments during this period was CGCEL’s acquisition of Butterfly Gandhimathi Appliances Limited (BGMAL), a South India-based kitchen appliances company. The company acquired a 55% stake in BGMAL in February 2022, which was followed by an open offer that increased CGCEL's holding to 81%. This acquisition allowed CGCEL to expand its presence in the kitchen appliances sector and enter new markets with an enhanced product offering. The acquisition made BGMAL a subsidiary of CGCEL, marking a major milestone in the company’s growth trajectory.

Enhancements in Product Offerings

During the fiscal year 2022-23, CGCEL launched several new products across various segments, reinforcing its commitment to innovation and consumer satisfaction. In the air cooler segment, the company launched the Ozone Royal and Optimus models, while in the appliance category, it introduced digital air fryers, multi-mode water heaters, and copper motor mixer grinders. The company also continued to focus on expanding its product portfolio in the storage water heaters, room heaters, and mixer grinders categories, with the introduction of new models such as the Amica Plus and Insta Flare.

Additionally, CGCEL introduced advanced ceiling fans like Montania, Versa, and Groove, which were designed to cater to a wide variety of consumer preferences. These aesthetic ceiling fans are equipped with improved motor technology for enhanced performance and energy efficiency.

Market Performance and Future Prospects

Crompton Greaves Consumer Electricals’ strong product portfolio and strategic acquisitions have positively impacted its market performance. As the company has consistently delivered strong financial results and market-leading innovations, the Crompton Greaves Consumer Electricals Share Price has seen positive movement, reflecting investor confidence. CGCEL’s commitment to sustainability, innovation, and market expansion continues to drive its growth in the competitive Indian market.

CGCEL’s journey from a demerger in 2015 to a market leader in the consumer electricals industry highlights its resilience and adaptability in a rapidly evolving market. Through strategic innovations, acquisitions, and expansions into new sectors, the company has positioned itself for continued growth, meeting the diverse needs of Indian consumers while maintaining a strong presence in the global marketplace. The future of Crompton Greaves Consumer Electricals appears bright as it continues to innovate and deliver products that enhance the lives of its customers.