2007-2008 - Cgglobal.com

The fans manufacturing plant at Baddi
produced 80,000 units in March 2008, with
a target to produce 1 million units during
2008-09
TABLE FAN ASSEMBLY LINE AT THE FANS DIVISION, GOA
on high value added large rating motors. It
has also undertaken a number of measures to
reduce material cost.
2007-08 saw a number of new products
introduced by the SBU, as well as some
significant developments. Some of these were:
$ Development of traction motor type
C1001TM for diesel electric locomotives
approved by the Railway Designs and Standards
Organisation. This has opened up a new market
for the SBU.
$ Development of largest rating horizontal
motors (3,700 KW) and vertical motors (2,675
KW) and extending the 11KV HT machines
range upto 2500 KW.
During 2007-08, the SBU also executed a
number of prestigious orders for Indian as well
as overseas customers. The HT Motors division
supplied equipment to Indian Oil Corporation
at Panipat, as well as for a Kenyan cement plant
and DC Motors for Turkey and North America.
The stampings division showed 17% volume
growth in 2007-08, which came about mainly
due to the installation of four high speed
notching machines at Ahmednagar. The
Ahmednagar plant, which started in 2006-07
with a capacity of 7,500 tonnes per year, is now
capable of producing 10,000 tonnes. During the
year, it developed the tooling to deliver export
orders as well as to prestigious Indian customers
such as Cummins Generators and Larsen &
Toubro. The division has over 20% market-share
in the stampings business.
Consumer Products
Crompton Greaves’ Consumer Products
business supplies fans, pumps, lighting
equipment (light sources and luminaires) and
a range of electrical household appliances. The
SBU has the following facilities:
$ Bethora and Kundaim (Goa): Fans.
$ Baddi (Himachal Pradesh): Fans.
$ Kanjur Marg (Maharashtra): Luminaires.
$ Ahmednagar (Maharashtra): Pumps.
$ Vadodara (Gujarat): Light sources.
The financial performance of the SBU is given
in Table 5.
In 2007-08, the SBU achieved gross sales
of Rs.11,668 million, which was 17% over the
previous year’s figures. PBIT grew at an even
higher rate of 27% — to reach Rs.1,208 million.
2007-08 is the first year in which Consumer
Products has crossed Rs.10 billion in gross sales
and Rs.1 billion in PBIT. This SBU contributes to
16% of the Company’s topline as well as PBIT.
Consumer Products also generated the highest
return on capital employed for the Company —
138% in 2007-08.
Revenue from fans and appliances has grown
by 24%, compared to the overall industry
growth of 16% — a testimony to the robustness
of the Company’s fans business. This comes
on the back of similar growth in the last five
years which has made this business’ 5-year
CAGR greater than the industry average. It is
now the second largest exporter of fans from
India — up from third position last year. The fans
manufacturing plant at Baddi produced 80,000
units in March 2008, with a target to produce 1
million units during 2008-09.
The appliances division (sells products such as
geysers, mixers, grinders, electric irons, toasters
and emergency lanterns) has also shown
appreciable growth. Its products are visible
in retail chains in India as well as in Dubai and
Muscat. As a part of its product development
exercise, the division has launched 600 VA, 800
VA and 1,400 VA ‘pure sine wave’ Home UPS.
After winning the Gold Award for 2006, both
the Goa units won the Frost & Sullivan (India)
Manufacturing Excellence Platinum Awards
in 2007, which is the highest level of awards in
its category. The division has started a Product
Development Centre at Goa, which focusses
on bringing new products to the market,
increasing product efficiencies and reducing
material costs.
16 ANNUAL REPORT 2007–2008 CROMPTON GREAVES LIMITED