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MEGA PROJECT - FINM

COMPANY NAME – CROMPTON GREAVES

Submited to - Prof. Mahesh Renguntwar

Submitted by -
Muskan Jain - N20221045
Purab Mehta – N20221055
Mohit Sony – N20222029
Manasvi Sharma – N20221041
 CROMPTON GREAVES CONSUMER
ELECTRICALS LIMITED

Crompton Greaves is one of the leading consumer companies in India with a 90+ years
old brand legacy. As of February 2016, it is an independent company under
professional management and has 2 business segments – Lighting and Electrical
Consumer Durables. This company market thier products under the “Crompton” brand
name in India and select export markets.

COMPANY OVERVIEW
Crompton Greaves Consumer Electricals Ltd is one of the leading consumer companies in
India with a 75+ years old brand legacy. As of February 2016, Crompton Greaves Consumer
Electricals is an independent company under professional management and have 2 business
segments – Lighting and Electrical Consumer Durables. The company market its products
under the “Crompton” brand name in India and select export markets.

The brand “Crompton Greaves” is one of the oldest brands in the country and has a rich
legacy associated with great quality, reliability, superior engineering capability, product
design and inspires an immense amount of trust. In its journey as CGCEL Crompton Greaves
Consumer Electricals is making the brand more contemporary and are building on its legacy
to become a more dynamic, younger and innovative “Crompton”. The company will engineer
this by building innovative products, that provide meaningful solutions to consumer needs.
Over the last few years, Crompton Greaves Consumer Electricals has launched some
breakthrough products like India’s first anti-dust fan and anti-bacterial LED bulb.

The company manage its product portfolio by continuously understanding its consumers
better. Consumer insights across categories are critical to sustaining and growing the core
product segments and adding new ones. The company work towards getting the right

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products to market faster and developing long-term product strategies and coherent
roadmaps. Crompton products are differentiated, provide meaningful consumer benefits,
deliver superior performance, and are designed with consumers in mind. The company's
design philosophy ensures the most effective interplay of ergonomics, function, utility and
form to provide a portfolio covering a wide spectrum of product feature-benefits as well as
price points.

CROMPTON GREAVES BELONGS TO THE ELECTRICAL

EQUIPMENT INDUSTRY.

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ELECTRICAL INDUSTRY

ELECTRICAL EQUIPMENT MARKET IN INDIA: KEY

DRIVERS, TRENDS, AND CHALLENGES
Based on our research output, there has been a negative impact on the market growth during
and post the COVID-19 era. The increase in the number of residential and commercial
building projects is notably driving the electrical equipment market growth in India, although
factors such as the threat from cyberattacks in the power generation industry may impede the
market growth. Our research analysts have studied the historical data and deduced the key
market drivers and the COVID-19 pandemic's impact on the heavy electrical equipment
market in India. The holistic analysis of the drivers will help in deducing end goals and
refining marketing strategies to gain a competitive edge.

KEY ELECTRICAL EQUIPMENT MARKET DRIVER IN

INDIA
The growth of the residential and commercial sectors in India will lead to an increase in the
demand for power, thereby driving the demand for cables. The growing middle-class
population in the country is leading to an increase in the demand for more housing units. The
availability of low-cost labour in this country has been adding to the lucrativeness of the
country to foreign companies seeking new markets to expand into. This is encouraging
enterprises in the construction industry to invest in construction and infrastructural
development activities. 

KEY ELECTRICAL EQUIPMENT MARKET TREND IN

INDIA

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The growth in cross-border electricity trading is another factor supporting the electrical
equipment market in India. Owing to the lack of power generation capacity in countries such
as Bangladesh, Nepal, and Myanmar, many people living in these nations do not have access
to electricity. The lack of access to electricity is a major challenge to poverty reduction and
economic development. Thus, cross-border electricity trade plays a major role in economic
growth and development, as it helps to reduce energy prices, overcome power shortages,
mitigates power shocks, and facilitates decarbonization for market extension and integration.
This will lead to increased demand for power generation and distribution equipment in India.
Thus, the growth in cross-border trading of electricity will lead to the growth of the market in
focus.

KEY ELECTRICAL EQUIPMENT MARKET CHALLENGE IN

INDIA
The number of cyberattacks, such as network attacks by hackers and cybercriminals, is rising
in India. During cyberattacks, hackers can attack the IT systems to cause infrastructural
damage and breakdown of power supply, resulting in an outage. One type of cyberattack
common to power systems is false data injection (FDI). A successful FDI attack on IT
systems can cause an imbalance between power consumption and power generation in a grid.
This can lead to a deviation of the frequency in the grid from its nominal value. Any
deviation in frequency caused by an FDI attack spreads across the entire grid and triggers
remedial actions, such as disconnecting customer loads or generators. Such actions can
damage the equipment, and cascading failures can lead to massive power blackouts. Thus, the
threat posed by cyberattacks on the power industry can hamper the growth of the market in
focus during the forecast period.

This electrical equipment market in India analysis report also provides detailed information

on other upcoming trends and challenges that will have a far-reaching effect on the market
growth. The actionable insights on the trends and challenges will help companies evaluate
and develop growth strategies for 2021-2025.

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WHO ARE THE MAJOR ELECTRICAL EQUIPMENT MARKET
VENDORS IN INDIA COMPETING WITH CROMPTON GREAVES?

The report analyses the market's competitive landscape and offers information on several
market vendors, including:

1.WHIRLPOOL
2.BAJAJ ELECTRIC
3.TTK PRESTIGE
4.SYMPHONY
5.IFB INDUSTRIES
6.HINDWAREAP
7.BUTTERFLY
8.STOVE KRAFT

This statistical study of the electrical equipment market in India encompasses successful

business strategies deployed by the key vendors. The electrical equipment market in India is
fragmented, and the vendors are deploying growth strategies such as making significantly
huge investments in R&D to push better products into the market and expand their
customer base to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market
vendors should focus more on the growth prospects in the fast-growing segments, while
maintaining their positions in the slow-growing segments.

The electrical equipment market in India forecast report offers in-depth insights into key
vendor profiles. The profiles include information on the production, sustainability, and
prospects of the leading companies.

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STP - MODEL

SWOT ANALYSIS OF CROMPTON GREAVES

For Crompton Greaves, SWOT analysis can help the brand focus on building upon its
strengths and opportunities while addressing its weaknesses as well as threats to improve its
market position. Let us start the Crompton Greaves SWOT Analysis:

CROMPTON GREAVES STRENGTHS

The strengths of Crompton Greaves looks at the key aspects of its business which gives it
competitive advantage in the market. Some important factors in a brand's strengths include its
financial position, experienced workforce, product uniqueness & intangible assets like brand
value. Below are the Strengths in the SWOT Analysis of Crompton Greaves :

1. Wide product range to provide end to end solutions to customers across various
segments

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 2. Major presence in domestic power market and wide installed equipment/customer
base
3. Prompt after sales service, Good understanding of markets conditions and
geographically wide spread
4. Significant technology absorption and adoption to suit local needs
5. Contemporary integrated manufacture base and infrastructure
6. Highly committed engineering, technical and managerial power

CROMPTON GREAVES WEAKNESSES

The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the
company is lacking or in which the competitors are better. Here are the weaknesses in the
Crompton Greaves SWOT Analysis:

1.Technology development constraints

2. Limited financing capacity for large projects

3.High working capitals

CROMPTON GREAVES OPPORTUNITIES

The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in Crompton Greaves SWOT Analysis:

1. High growth rate will stimulate growth in demand for infrastructure

2.Boost to power transmission sector and privatization moves in distribution sector

3.Total transmission capacity to be increased

4.Reduction of costs

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CROMPTON GREAVES THREATS

The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats. The threats in the SWOT Analysis of Crompton Greaves are as
mentioned:

1.Delay/ Deferment of projects

2.Technology leaders unwilling to share technology

3. International players consolidating and setting up of local manufacturing bases

4.Increasing competition from large companies with strong financial muscle

5.Lowering of import tariffs

Crompton Greaves Marketing Strategy & Marketing Mix

(4Ps)

Crompton Greaves Product Strategy:

The product strategy and mix in Crompton Greaves marketing strategy can be explained as
follows:

Crompton Greaves offers wide range of products in various categories. Crompton Greaves
has evolved so much in the sector of electricity that, its name is being uses synonymous to
electrical appliances and services. Crompton Greaves has led the market in the category fans,
street lighting and domestic pumps. Many products form the product strategy in its marketing
mix. It employees technology in all its products and that helps it to stand unique in very
possible manner. Crompton Greaves’ maximum products are 5 star rated and it has achieved
various awards for the same. Its unique products include temperature sensing fans, etc. It has
the following 4 product segments:

• Power systems

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• Industrial segments

• Consumer products

• Automation system

The various product and service offerings are listed below:

CROMPTON GREAVES PRICE/PRICING STRATEGY:

Below is the pricing strategy in Crompton Greaves marketing strategy:

Crompton Greaves believes in competitive pricing strategy. It always analyses the prices of
rivals and sets its price accordingly. The price is set in such a way that it doesn’t seem to
discourage the customers or make them feel it is out of reach, instead it maintains its value
and quality and helps the customers in making the right choice. Crompton Greaves has
always offered quality products to its customers as a results of which customer loyalty
towards this brand is very high. This gives an overview in the marketing mix pricing strategy
of Crompton Greaves.

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CROMPTON GREAVES PLACE & DISTRIBUTION STRATEGY:

Following is the distribution strategy in the Crompton Greaves marketing mix:

Crompton Greaves has its manufacturing plants in Goa, Vadodara, Ahmednagar and Baddi.
Crompton Greaves has its own and franchises all over India, covering 150000 retail outlets.
Currently Crompton Greaves is focussed on building its own ‘exclusive’ store. It has a
widespread network and has its offices in most of the developed cities in India. These are
divided into 4 regions: north, south, east and west. In north its offices are located in New
Delhi, Jalandhar, Jaipur, Gwalior and Lucknow. In south – Chennai, Cochin, Secunderabad
and Bangalore. In west – Mumbai, Ahmedabad, Nasik, Indore, Baroda, Pune, Nagpur,
Raipur, Kolhapur and Bhopal. In east – Kolkata, Patna, Bhubaneshwar and Guwahati.

Apart from being the leading brand in India, Crompton Greaves has made its presence feel in
international market through its various acquisitions.

Its website is also well designed and it helps the organisation to rightly portray its offerings
and increase its consumer base.

CROMPTON GREAVES PROMOTION & ADVERTISING STRATEGY:

The promotional and advertising strategy in the Crompton Greaves marketing strategy is as
follows:

Crompton Greaves has always been active in news and media through its services, products
and goodwill. Crompton Greaves organises blood donation camps, display contests to spread
awareness and reach maximum customers, exclusive showrooms, participates in trade shows,
van camps are set up to promote agricultural sector products, conclaves, etc. Crompton
Greaves has actively published all its events in news and covered it online, and these details
are also available on its website. Trough commercials on televisions, etc. and ads in
magazines, newspapers, etc. it creates an impact in the minds of customers. Hence, this
completes the marketing mix of Crompton Greaves.

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CHALLENGES IN ELECTRONICS MANUFACTURING

The electronics industry can be broken down into three main categories: semiconductors,
Electronics Manufacturing Services (EMS), and Original Equipment Manufacturers (OEM).
To simplify things, out of these industry sub verticals, we'll focus on the challenges faced by
EMS and small to mid-sized contract manufacturers:

1. Shrinking Operating Margins

Global competition and new innovations are driving prices down. Companies must
continually become more cost-efficient to remain profitable.

2. Complex Global Supply-Chain

More and more, companies are having to juggle internal and external resources while staying
within international standards. Issues such as traceability and compliance are increasing
operational burdens. It is not unusual for components and sub-components to embark on a
journey that touches three or more continents before reaching the end-consumer.

3. Service and Warranty Management

Leveraging the global supply-chain is putting more focus on supplier quality management.
Having a strong quality and traceability system directly affects warranty reserve and post-
production service hours.

4. Short Product Lifecycles

With quickly changing consumer tastes and preferences, EMS companies and contract
manufacturers need to have effective New Product Introduction (NPI) processes in place.
Closed-loop communication between sales, manufacturing, and engineering is vital to ensure
product launches hit time, volume, and quality targets.

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 5. Uncertain Demand

Aggregately, economic volatility and cyclical demand cause fluctuations in production. On a

more granular level, consumer preference can cause spikes in demand for an individual
product or company. Efficient lean capabilities must be in place to keep inventory aligned
with demand.

6. Sustainability

Emerging regulations and standards are forcing companies to account more and more for
Corporate Social Responsibility (CSR) in decisions. E-Waste, a popular topic today, is
driving conversations about the disposal of products and their impact on the environment.
Companies must now consider of the complete product lifecycle in decisions.

COVID-19 IMPACT
Crompton Greaves Consumer Electricals (Crompton Consumer) has gained about 21 per cent
since May lows. While the company's March quarter performance had shown resilience on
the margins front, even as sales declined, the easing of the lockdown has improved sentiment.
Analysts, despite cutting their FY21 earnings to factor in the lockdown impact, have also
been hopeful of a faster recovery for the company, given it’s product range, which is less
discretionary and seasonal in nature.

In Q4, the profit margin maintained a strong trajectory, improving sequentially due to cost
control and a superior sales-mix. Analysts believe Crompton Consumer is better placed than
peers because of limited exposure to the B2B (business-to-business) or wholesale segment
and less discretionary nature of products, such as fans, lighting equipment, and pumps.
Pumps for agricultural purposes may make gains in the monsoon season, given a strong rural
outlook.

For the March quarter, revenues had fallen 15 per cent year-on-year (YoY) and so did
operating profit, but the operating profit margin at 13.8 per cent remained the year-ago level,
and was better than the December quarter's 12.8 per cent. After results in mid-May, Emkay
Research's analysts said market share gains and a stable margin in a tough demand scenario

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are key positives. The management, too, hinted at an additional Rs 100 crore cost savings
over and above its ongoing cost optimisation programme.

Notably, before the lockdown, during January-February, volume growth was strong, led by
18 per cent growth in the electrical consumer durables (ECD) segment, wherein fans (up 21
per cent) and domestic pumps (up 19 per cent) did well. Appliances, too, grew 60 per cent led
by water heaters (up 48 per cent in volumes and 97 per cent in value); mixer grinders and air
coolers grew by 54-83 per cent in value.

The lighting segment, where competition continues, saw 40 per cent volume growth in LED
bulbs, batons and panels, and 15 per cent in value terms during January-February. Analysts
say the B2C (business-to-consumer) lighting segment may see an early recovery; the B2B
lighting segment is likely to see a recovery from the March 2021 quarter.

Most analysts, thus, remain positive on Crompton Consumer even as they have cut forward
earnings estimates. After results, the average target price of 26 brokerages polled by
Bloomberg is Rs 248, for the stock currently trading at Rs 240. Given the near-term
challenges, long-term investors may use corrections for a better entry point.

USP
A pioneer and has top leadership position in the management and application of electrical
energy. Every Crompton product guarantees durability, superior aesthetics, performance and
best-in-class energy efficiency.

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MISSION & VISION

To provide the best styles and the highest industry quality in Consumer Products and
accessories.

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