Can you live out a whole lifetime imagining that there will be no electricity? No lights, not even stoves, TVs, microwaves, or computers—all these being compulsory tools now for daily routine. Electricity has a rich history, with significant discoveries and events, over a time span of more than a century, that made consumer electronics what they are today in modern life.
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Technological advancement carries on accelerating its pace as companies like Crompton Greaves Consumer Electricals Limited, which was established back in 1937, affect those changes. This article will draw you into the Crompton story—from its founders to success, products, business models, and challenges.
Crompton Success Story: Important Highlights
| Company Name | CROMPTON GREAVES CONSUMER ELECTRICALS LIMITED |
| Headquarters | Mumbai, Maharashtra, India |
| Sector | Consumer Electronic |
| Founder | R. E. B. Crompton |
| Founded | 1937 |
| Status | Public |
| Revenue | $676.8 million (FY22) |
| Website | crompton.co.in |
About Crompton
With a brand legacy of over 85 years, Crompton Greaves Consumer Electricals Ltd. is India’s market leader in the category of fans and residential pumps. Over the years, the organization has continuously strived to produce a range of innovative products that cater to the modern consumer including superior quality and high-performance fans, pumps, lighting solutions and a range of other categories like water heaters; air coolers; small kitchen appliances like mixer grinders, air fryers, OTG, electric kettles etc.; other home appliances like irons & built-in kitchen appliances.
The company has further invested in brand and innovation to not only better understand and meet consumer needs but to also help drive energy efficiency. The consumer business also has a well-established and organized distribution network driven by a strong dealer base across the country offering a wide service network and robust after-sales service to its customers.
The company’s consistent dedication to developing energy-efficient products has led to significant recognition. It has been honoured with three prestigious National Energy Consumer Awards (NECA) by BEE, Ministry of Power. The recent award was presented by the Hon’ble President of India, Smt. Droupadi Murmu for the company’s storage water heater in 2023. In 2019, the brand won in two categories: Ceiling Fans and LED Bulbs.
Additionally, it was recognized as one of India’s Best Managed Companies 2022 by Deloitte Private and listed among ‘India’s Top 500 Companies 2022’ by Dun & Bradstreet India. The company has also been featured in Brand Top 75 most valuable Indian brands list for 2020 released by WPP and Kantar. Furthermore, Crompton was also recognized as the Brand of the Decade 2021 by Herald Global and BARC Asia in the Consumer Electrical category.
Founders of Crompton Company
Rookes Evelyn Bell Crompton initially established Crompton company and realised the potential of electrical appliances for ease in lifestyle. Promeet Gosh is the CEO and the Managing Director of the company, and he is also the executive at Crompton Greaves Consumer Electricals Ltd. Mathew Job and Shantanu Khosla are also a part of the success of Crompton Company in the list of prominent figures.
Rookes Evelyn Bell: Founder of Crompton
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An Englishman born in 1845 close to Thirsk, Yorkshire—R.E.B. Crompton, founder of Crompton & Co., one of the original electric light and public electricity supply pioneers. Often termed a trailblazer in such a field, his company has proven to be one of the largest manufacturers in the world for his industry with respect to electric hardware. Founding member of the Royal Automobile Club and member of the Royal Society, Crompton highly advocated for international standards in electrical systems that have been championed from the start.
Promeet Gosh: Current CEO and MD of Crompton
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To hold the sting of the success of the Crompton Company, the next CEO and Managing Director, Promeet Gosh, hold this chair in Crompton Greaves Consumer Electricals on May 1, 2023. He has been appointed for the next five years, which will expire on April 30, 2028.
Gosh has been an integral part of this company since 2016, and his contribution has taken the company to a new height.
Promeet Gosh completed his graduation degree in engineering (electrical & electronics) from the National Institute of Technology, Trichy, after which he did an MBA from the Indian Institute of Management, Calcutta.
Earlier in this company, Gosh worked as an investment banker for almost two decades and also as a director on boards of various companies across sectors.
Matthew Job
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An alumnus of the Indian Institute of Management, Kolkata Mathew Job has worked as the Chief Executive Officer at Crompton Greaves Consumer Electricals Ltd. He received a diploma in marketing from the institute, after which he started contributing great efforts to the market.
In his initial days, Mathew worked in some of the electrical appliance manufacturing companies like Philips for almost 15 years as a managing director and others in India as well as abroad.
His prominence can be read through the awards for being the best leader received by the Times of Crisis 2021 by the Great Place to Work Institute.
Shantanu Khosla
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Shantanu Khosla holds great intelligence after studying at the top educational institutes of India: the Indian Institute of Technology, Bombay (IIT Bombay), and the Indian Institute of Management, Calcutta (IIM Calcutta).
He has served as the Managing Director at Crompton Greaves Consumer Electricals Limited (CGCEL). Shantanu also had the opportunity of being Procter & Gamble’s Managing Director and Chief Executive Officer (CEO) of the same company.
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Startup Story of Crompton
In fact, Crompton is a part of history that started back in 1878 when R.E.B. Crompton founded Crompton & Co. Then, the time was a very remarkable time in India’s history, as this company was at its production peak—a manufacturing giant of electrical equipment. And this is how Crompton was born through the merger with F.A. Parkinson and formed Crompton Parkinson Ltd in 1927, and then, several decades later, from 1947, the company came under the umbrella of the Thapar Group headed by Karam Chand Thapar.
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In 1960, Crompton came under public listing, and in 1966 the company changed its name to Crompton Greaves Limited. By 2014, though, the company planned to demerge with the power and industrial systems separated from the consumer goods division. This thus saw the birth of Crompton Greaves Consumer Electricals Limited (CGCEL) in an eventful year in 2016. The same year, Gautam Thapar sold off his 34 percent stake in CGCEL for ₹2,000 crores to Advent International and Temasek Holdings. Meanwhile, the industrial side of the business was rebranded as CG Power and Industrial Solutions Limited.
Today, CGCEL has two main business segments, which are electric consumer durables, such as fans, appliances, and pumps, and lighting, including both LED and non-LED products. Crompton, too, is a leader in the global market fanwise, holding a marginal 26% in it. The company operates manufacturing facilities, including Goa, Vadodara, Ahmednagar, and Baddi, and their products, which reach almost 150,000 retail outlets in the country.
Crompton: Mission and Vision
Being a highly valuable electrical company in India, it has some future vision and strong pillars, which are listed below:
1. Operational Excellence
2- Brand Excellence
3- Portfolio Excellence
4. Go-to-market Excellence
5. Organizational Excellence
As per the statement of Crompton’s CEO Mathew Job, the company’s vision matches with the current PM of India, Narendra Modi, to make India an “Atmanirbhar Bharat.” The company will work to enhance its product quality with perfect consumer satisfaction, ultimately offering a sustainable measure of living.
Business Model of Crompton
Crompton’s is divided into two major units: electrical appliances manufacturing and consumer goods. In reality, the word Crompton itself means any consumer electrical good.
Crompton predominantly deals with the B2C segment that falls into the B2B category of sales by distributors as well as retailers; it targets lower-middle- to upper-middle-income buyers. It has its manufacturing units at Goa, Baroda, and Ahmednagar, as well as Baddi, and employs more than 1,500 people all over India.
The business model of Crompton is divided into two major categories: electrical appliances manufacturing and consumer goods. The name Crompton is basically for any line of consumer electrical products.
However, B2B sales through distributors and retailers will also be a focus. Crompton primarily focuses on lower-middle- to upper-middle-class consumers. This company has production facilities in Goa, Baroda, Ahmednagar, and Baddi and employs over 1,500 people across India.
Crompton Products Offering to Consumers
Crompton offers different electrical appliances, which include fans, bulbs, lighting, and kitchen appliances too, to provide ease to people’s lifestyles. Some of the products are listed below:
Crompton Fans
Crompton provides a huge variety of affordable fans, generally understood to have an excellent reputation for their range of fans. These fans are known for their reasonable prices and innovative designs, making them used widely across homes in India.
Fan products from this company include:
Table Fans
Ceiling Fans—comprising Silent Fans, Ceiling Fans with LED Lighting, Modern Designer Fans, and Air 360 Fans.
Pedestal Fans
Exhaust Fans
Wall-mounted Fans
Kitchen Fans
Crompton Lighting
Crompton—the intelligent brand for innovative lighting solutions that fit any mood: Here is the range of Crompton lighting:
Smart lighting: Smart LED bulbs, smart LED battens
LED bulbs—Twist lamp, 5-star range Lyor
Table lamps
Battens
Conventional lamps—tube lights, halogen
Ceiling lighting: LED recessed panels, LED surface panels, LED spotlights
Home Appliances
Kitchen Appliances
Pumps
Revenue Model of Crompton
As of March 31, 2022, Crompton made a total revenue of $676.8 million (or ₹5,394 crores). Out of this, Electric Consumer Durables contributed $540.9 million (or ₹4,311 crores), while Lighting Products contributed the remaining $135.9 million (or ₹1,083 crores). Compared to the previous year, this showed an increase of 12.3% because this figure was only at $602.6 million (or ₹4,803 crores) last year.
Funding and Investors of Crompton
Two main investors in Crompton Greaves Consumer Electricals include Advent International and Temasek Holdings. Their amount of investment is undisclosed.
The company plans to raise up to ₹925 crore in long-term funds through the issuance of non-convertible debentures (NCDs) via private placement by June 2022. This fundraising is subject to the borrowing limits approved by its shareholders for the company.
Mergers and Acquisitions
The Crompton Company has acquired the company of Butterfly Gandhimathi Appliances, for which they paid Rs 2,076 crore for the acquisition. The company has worked impressively in the sector of electrical goods and services.
Crompton: Awards and Achievements
The company has won some valuable awards, which are listed below:
1. Brand of the Decade: Herald Global and BARC Asia (2021-2022) have bestowed this award on the Crompton Company for its extreme achievement in electrical appliances.
2. Corporate Award: Crompton Company has won the Corporate Award at the 22nd edition of India’s Top 500 Companies, hosted by Dun & Bradstreet India (2022).
Competitors of Crompton
The company has been growing tremendously with an advanced impact, but on the same hand, its competitors are growing, and some of Crompton’s competitors are listed below:
1. Symphony
2- FB industries
3. Bajaj Electricals
4- Whirlpool
5. Khaitan Electricals
Conclusion
Crompton Company has transformed the electrical appliance sector of India, and it has also helped Indian households ease and transformation with the upgradation of the technology in the market. This company has worked hard to achieve this much in the Indian market, where consumer satisfaction is the utmost thing in life.
Working in the direction to help the Indian government is also a necessary thing that this company always takes care of, and the core pillars of the company include the manufacturing of electrical goods, which are totally made by the Indian goods and materials to make India an Atmanirbhar Bharat.
