Crompton Greaves is an India based multinational operating
in power ,consumer electronics and lighting space. CG is part of Gautham Thaper
led Avantha Group and operating many manufacturing facilities across the world
which includes Pauwels (Belgium), Gans(Hungary, Microsol (Ireland), Sonomatra
(France), MSE Power Systems (USA) , Power Technology Solutions (UK, Emotron (Sweden), QEI Inc (USA) and ZIV Group
(Spain) .In India Comapny have 22 manufacturing facilities for its various
products.
Company’s operations are broadly classified into three
divisions – Power Systems,Industrial Products and Consumer electronics.Under the
power systems division company manufacturing
Transformers,Switchgear,T&D Systems,Protection Control products
..etc.CG is one of the 10 largest Transformer manufacturers in the world. Its
industrial systems division producing Generators,Motors,Alternators..etc. Under
the consumer products division company is a reputed manufacturer of
Fans,Pumps,Lighting equipments,Home appliances..etc.During the last three years CG’s stock price crashed
substantially mainly due to three reasons.Company reported negative growth in
many verticals due to of overall
de-growth in major economies .Another
reason is the cost involved in restructuring its Belgium operations which just
concluded .In addition to this an untimely
aircraft purchase and share sale of its erstwhile managing director of the
company, Mr SM Trehan dented the image of company and its share price now
landed around its multi year low of Rs.90 from a high of Rs.458 ( stock prices
adjusted to split of FV) .I believe ,the
protest raised by institutional investors on aircraft purchase issue will help
the company to rethink about the importance of fair corporate governance and
avoid such untimely decisions in future.In the business front company is
expected to start improving from hereon and report robust growth from FY 2013-14
onwards from a loss in this FY.This is the time to accumulate CG in a phased
manner with long term view @ CMP of Rs.90 or in any dip.
Link to company website HERE
Link to company website HERE
