Crompton Greaves Consumer Electrical Ltd (CGCEL), which has demerged from its parent firm Crompton Greaves, is focusing on LED lighting and household appliances segments to drive growth.
According to a PTI report: The company witnessed 129 per cent growth in the LED bulb segment and 54 per cent expansion in the premium fans category in the fourth quarter of FY2015-16, CGCEL told analysts in a conference call.
“The two key areas, which we could get high growth are obviously LED lighting and second is household appliance given relative small size of this business today,” Managing Director, CGCEL, Shantanu Khosla was quoted by PTI as saying.
He was further quoted by PTI as saying, besides government’s EESL scheme, retail and other B2B partnerships helped log a high growth in LED bulb category. Over the capital expenditure, he said, it would be around Rs 30-40 crore.
The company is also expanding its sales network.
“We will be going further and deeper as our products do sell in rural but largely through wholesale and not through our own programmes,” he was quoted by PTI as saying.
Over the growth in fan segment, he said: “We are getting a disproportionate growth from premium fans and non-premium fans are also growing. The opportunity to grow premium fans is significant”.
The premium fan segment grew by 54 per cent in the fourth quarter and by 35 per cent in 2015-16. He, however, added that its premium fan business represents only 10 per cent of its total fan business.
The company, which came in existence after being demerged from parent Crompton Greaves last fiscal, is aiming to be a market leader in the segment with right innovation product and go-to-market approach.
“Our goal in appliance is to become a significant player and by significant we define is either number two player or at very least strong number three on route of becoming number two,” he said.
CGCEL, which was listed on BSE after being demerged from the parent firm Crompton Greaves this month, had standalone net sales of Rs 1,001.63 crore in January-March quarter.
Company CFO Sandeep Batra was quoted by PTI as saying that total debt as of March 31 was around Rs 640 crore.