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
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