Crompton Greaves Consumer Electricals Limited
Know the Company
Crompton Greaves Consumer Electricals Ltd (CGCEL) is a leading name in India’s consumer electricals industry, with a legacy of over eight decades. The Company established in 2015 after its demerger from Crompton Greaves Limited. CGCEL offers energy-efficient and high-quality products across two key segments such as Electrical Consumer Durables (ECD) and Lighting products. It serves residential, commercial and industrial markets both in India and abroad.
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The company’s product portfolio comprises a wide range of ceiling, table, pedestal, wall-mounted, and exhaust fans, along with smart IoT-enabled models. In the lighting segment, it offers LED bulbs, tube lights, downlights, streetlights and innovative smart lighting solutions. CGCEL also provides various appliances, including water heaters, air coolers, irons, and kitchen appliances such as mixer grinders and electric cookers. Its pumps cater to domestic and agricultural needs, supporting water distribution and irrigation.
In 2018, CGCEL’s acquired of a 75% stake in Butterfly Gandhimathi Appliances- one of the leading kitchen ware brands in India. Butterfly Gandhimathi Appliances is listed on the Indian stock exchanges, with market capitalization of over Rs 1600 crores.
CGCEL has five state-of-the-art manufacturing facilities which are located in Goa, Vadodara, Ahmednagar, Baddi, and Chennai. It has a robust distribution network over 6,700 channel partners and close to 270,000 retailers across the nook and coroner of country.
Strengths
CGCEL has consistently demonstrated strong performance in the highly competitive consumer durables market, driven by strategic initiatives focused on product innovation, marketing and operational efficiency. The company has established itself as a market leader across multiple segments, including fans, lighting, home appliances and water pumps, reinforcing its reputation for delivering reliable and innovative products.
A major milestone in CGCEL’s growth journey is its strategic acquisition of a 75% stake in Butterfly Gandhimathi Appliances, which significantly bolstered its presence in the kitchen appliance segment. This acquisition has expanded CGCEL’s product portfolio to include mixer grinders, wet grinders, LPG stoves, and toasters. Butterfly’s strong market presence and leadership in the e-commerce sector have further strengthened CGCEL’s position, allowing the company to penetrate new markets and meet evolving consumer demands. Butterfly’s reputation for quality and innovation has earned widespread consumer trust, enabling Crompton to leverage this goodwill and accelerate growth in the kitchen appliance category. In addition, the acquisition grants CGCEL access to advanced manufacturing capabilities, R&D expertise, and an extensive distribution network, particularly in southern India.
Operating in a highly competitive market, CGCEL places a strong emphasis on sustainability initiatives to maintain its edge. The company’s sustainability efforts are anchored on key pillars, including organizational empowerment, consumer-centric innovation, portfolio premiumization, supply chain excellence, and digital enablement. These initiatives not only ensure operational efficiency but also reflect CGCEL’s commitment to long-term growth while aligning with global sustainability standards.
CGCEL has consistently invested in modern manufacturing facilities and advertising, driving robust revenue growth and ensuring a strong market presence. The company has also prioritized digital marketing to increase brand visibility and consumer engagement, integrating digital tools across operations, marketing, and customer service. This adaptation to changing market dynamics reflects CGCEL’s ability to keep pace with shifting consumer behavior. Crompton’s success in aligning digital strategies with brand investments ensures it maintains a significant presence across both online and offline channels, further enhancing its competitive position.
A key driver of CGCEL’s success is its ability to innovate and introduce new products that address consumer needs and create market differentiation. The company is committed to developing unique products that add value to consumers, anticipating future trends to stay ahead in an evolving marketplace. This focus on innovation-driven growth ensures CGCEL secures a leadership position while meeting the growing demand for premium, energy-efficient products.
In the first quarter of FY 2024-25, CGCEL reported impressive financial performance, with revenue rising by 14% year-on-year to Rs 2,138 crore. Profit also surged by 28% to Rs 158 crore, driven by lower raw material costs and improved operational efficiency.
The company’s ability to respond to shifting consumer preferences is another significant advantage. With growing demand for high-end, energy-efficient products, consumers are increasingly prioritizing aesthetics, performance, and sustainability. In response, Crompton has expanded its portfolio of designer fans, smart lighting solutions, and IoT-enabled pumps, addressing the evolving needs of the modern consumer. The company has also introduced eco-friendly, solar-powered outdoor lighting solutions, reflecting its focus on sustainable innovation.
CGCEL remains committed to continuous product development by focusing on consumer preferences, aesthetics, and functionality. In the past financial year, the company launched 165 new products, each tailored to meet the demands of the modern consumer.
India’s rapid urbanization and favorable demographic trends are creating new opportunities for consumer durables companies. With rising disposable incomes and growing demand for premium, energy-efficient products, the market outlook is highly favorable. By 2030, India’s urban population is expected to reach 600 million, presenting a significant opportunity for companies like CGCEL to expand their market share and tap into new consumer segments.
In short, Crompton Greaves Consumer Electricals continues to lead the industry by combining innovation with operational excellence. Its strategic investments in premium products, advanced manufacturing practices, and digital marketing ensure sustained growth and brand relevance. With favorable market trends and rising demand for smart, energy-efficient solutions, CGCEL is well-positioned to capture emerging opportunities in the Indian consumer durables market.
Industry Overview and Outlook
The Electrical Consumer Durables industry in India has witnessed steady growth over the past few years, driven by increasing demand for energy-efficient and premium products. This upward trend has been further bolstered by multiple factors, such as rural electrification, growth in the real estate sector, and supportive government policies like the Production Linked Incentive (PLI) scheme and the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Additionally, consumers are now shifting towards energy-efficient solutions, including products with BIS and BEE star ratings, solar-powered systems, and IoT-enabled smart homes. The growing expectation for voice-assisted features and continuous product upgrades reflects changing consumer preferences, with smart and connected devices becoming essential in modern homes.
Crompton holds a leading position in the fan segment, which continues to be a household essential in India. The increasing demand for premium, decorative, and energy-efficient fans has strengthened the company’s market dominance. Consumers are now willing to invest in aesthetically appealing models, reflecting their growing purchasing power and desire for enhanced lifestyle products. The demand is further fueled by new home installations, rising replacement needs, and the introduction of stricter energy efficiency standards. These factors collectively ensure sustained growth in the fan segment.
The pumps industry plays a pivotal role across various sectors, including agriculture, water management, manufacturing, and residential applications. The increasing demand for irrigation solutions and municipal water systems is a significant driver of growth. Additionally, government initiatives like the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) have accelerated the adoption of solar pumps, promoting sustainable water management practices. With continuous government support, the solar pump market is expected to experience considerable growth in the coming years, contributing to the overall expansion of the pumps industry.
Technological advancements, the growing focus on energy efficiency, and rapid urbanization are driving demand for large domestic appliances such as air coolers and water heaters. Additionally, the transformation of digital retail has made these products more accessible, further accelerating market growth. As urbanization continues to gather pace, especially with India’s demographic advantage and expanding middle class, the demand for durable electrical appliances is expected to rise significantly in the future.
Risk Factors
One of the major risk factors in the consumer electrical industry is the rapid pace of technological advancements worldwide, which accelerates product obsolescence and impacts both sales and sustainability for companies in this sector. The rapid pace of technological revolution demands significant investments, often without any guarantee of proportional returns. Additionally, rising raw-metal prices, particularly copper, remains a major cause of concern.
Sector: Consumer Discretionary
Market Price: Rs. 430.15 as on today
FV: Rs 2/-
Stock Name: Crompton Greaves Consumer Electricals Ltd
BSE Code: 539876, NSE Code: CROMPTON
Market Cap.: ₹27654 Crore
Book Value: Rs. 46.6
Segment: Consumer Electricals/ Electronics
Incorporation: 2015
Headquarters: Mumbai, India
