Crompton Greaves Limited will be de-merged into three separate companies shortly. Crompton Greaves Ltd. is India’s largest private electrical equipment manufacturer and comprises three groups- power and industrial systems, consumer products and telecom and informatics.
Power and Industrial systems comprise transformers, switch gears and control and engineering products, power generations, alternators, motors and signaling systems and form 70% of turnover.
Consumer Products i.e. lighting, fans, appliances and international divisions form 26% of turnover while telecom and informatics form 4% of the company’s turnover.
The move to hive off each of its units into separate companies is a step in the right direction as it would lead to better corporate governance. It will streamline the operations of the company and also ensure better accountability and responsibility by setting up profit centres and responsibility centres. This will also ensure conceiving better strategies for the future and chalking out ways and means of executing them.
The company is looking at sharply augmenting the revenue from its telecom and informatics centre due to the emerging opportunities available due to e-commerce and convergence.
The present exercise of restructuring the organisation into strategic business units is bound to increase operational feasibility and also sharply improve focus. It will also facilitate technical and financial collaborations where such participation is subject to specific products.
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