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Electricity, ever thought what would have happened to us if it wasn’t invented? The lights that we need during nighttime, watching television, electric stove, microwave, using a computer, and all the other things that require electricity. This is how we have become so dependent on utilising electricity.
The history of electricity can be dated back to some 100 years ago with multiple inventions or key discoveries. More so, consumer electronics are what has become an important part of our lives. It is amazing how we use water heaters, air coolers, kitchen appliances, and other household appliances today.
Advancements in technology are occurring much faster than ever before. With the advent of technology and innovations, a lot of consumer electrical appliances have been invented. Crompton or more commonly known as Crompton Greaves Consumer Electricals Limited is an electrical equipment manufacturer company in India that was founded in 1937.
Discover all about Crompton in this article like Crompton’s industry, founders and team, Crompton success story, business and revenue model, Crompton’s key products, investors, and challenges faced by Crompton.
Crompton – Company Highlights
|Startup Name||Crompton Greaves Consumer Electricals Limited|
|Headquarters||Mumbai, Maharashtra, India|
|Founder||R. E. B. Crompton|
|Revenue||$676.8 million (FY22)|
Crompton – About
Crompton Greaves Consumer Electricals Limited was founded in 1937 and has its headquarters in Mumbai. With almost 90+ years of brand history, Crompton is now one of India’s top consumer electrical companies. The company is a competent management-led autonomous firm with two business segments—lighting and electrical consumer durables. These include products like LED lighting, table lamps, pumps, fans, grinders, heater converters, irons, microwaves, chimneys, etc.
Not only India, the company also sells its goods in international markets. Its business is included in the top ten listed Indian consumer durables businesses’ S&P Global BSE Consumer Durables Index.
Crompton – Industry
As per reports, in 2019, the size of the global consumer electronics market was $729.11 billion. The unexpected impact of Covid-19 in 2020 led to a decrease in the demand for consumer goods. During that period, the market saw a decline of -5.4%. However, as per predictions, the market would see a rise from $689.45 in 2020 billion to $989.37 billion in 2027 at a CAGR of 5.3% in the period between 2020-2027.
Crompton – Founders and Team
Crompton was originally founded by Rookes Evelyn Bell Crompton. Currently, Mathew Job is the CEO & Executive at Crompton Greaves Consumer Electricals Ltd., while Shantanu Khosla is the Managing Director.
Rookes Evelyn Bell Crompton
Born near Thirsk, Yorkshire in 1845, R.E.B Crompton founded Crompton & Co. He is referred to as the frontiersperson of electric lighting and public electricity supply systems. His company Crompton & Co. was one of the world’s first large-scale manufacturers of electrical equipment. He was a founding member of the Royal Automobile Club and a member of the Royal Society. R.E.B Crompton was also a proponent of an international standard for electrical systems from the beginning.
Mathew Job is the Chief Executive Officer at Crompton Greaves Consumer Electricals Ltd. He is an alumnus of the Indian Institute of Management, Kolkata, where he got his diploma in marketing. Matthew started his career at Phillips Electronics as a Senior Marketing Director for almost 15 years. After working at Phillips, Matthew held several pivotal roles in many organisations both in India and abroad. He has been recognised as one of the Best Leaders in Times of Crisis 2021 by the Great Place to Work Institute.
Shantanu Khosla is the Managing Director at Crompton Greaves Consumer Electricals Limited (CGCEL). Before serving as the MD at Crompton, Shantanu Khosla was Procter & Gamble’s Managing Director and Chief Executive Officer (CEO). He holds an MBA from the Indian Institute of Management, Calcutta, and a Bachelor of Engineering in Mechanical from the Indian Institute of Technology, Bombay.
Crompton – Startup Story
The startup story of Crompton dates back to 1878, when R.E.B Crompton, founded Crompton & Co. as one of the largest manufacturers of electrical equipment during that time. After a few years, the company was merged with F.A. Parkinson in 1927 to form Crompton Parkinson Ltd. Around 1947, Karam Chand Thapar of the Thapar Group purchased the company.
In 1960, the company was listed as a public company and was changed to Crompton Greaves Limited in 1966.
However, fate took a different turn when Crompton Greaves Limited announced plans to demerge the company in July 2014 in order to separate its consumer goods division from the power and industrial systems section. Crompton Greaves Consumer Electricals Limited (CGCEL) was listed in 2016, with Gautam Thapar selling his 34% stake in CGCEL to Advent International and Temasek Holdings for Rs 2,000 crores. In addition to this, for its industrial goods, Crompton Greaves renamed itself CG Power and Industrial Solutions Limited.
CGCEL’s business is organised into two divisions, which are electrical consumer durables (ECD), including fans, appliances, and pumps. The second category is Lightings, which includes both LED and non-LED goods.
Today, the company is a global leader in the fans business, with a 26% market share. Crompton has manufacturing facilities in Goa, Vadodara, Ahmednagar, and Baddi and its products are available in nearly 150,000 retail stores across the country.
Crompton – Mission and Vision
Crompton likes to work with five pillars of its vision, which are:
- Brand Excellence
- Portfolio Excellence
- Go-to-market Excellence
- Operational Excellence
- Organisational Excellence
In a report, Matthew Job, the CEO of Crompton mentioned that the company’s vision matches with Prime Minister of India, Narendra Modi’s vision of an Aatmanirbhar Bharat, and plans to offer sustainable measures of living.
Crompton – Name, Logo, and Tagline
Crompton Greaves Consumer Electricals Limited derives its name from its founder, R.E.B Crompton. Crompton’s tagline mostly reads as, ‘Let’s Hangout Ghar Pe!’. Its other taglines include ‘Everyday Solutions’, ‘Perfect Design for All Your Needs’ and ‘Smart Solutions, Strong Relationship’.
Crompton – Business Model
The business model can be divided into two units of electrical equipment manufacturing. The company has been a household name due to its wide variety of consumer electrical goods.
It is reported that the company targets customers from the lower-middle-class to middle-class consumers and also in the retail business, wholesalers, with a B2B business model. With manufacturing facilities set up at Goa, Baroda, Ahmednagar, and Baddi, Crompton provides employment to more than 1,500 people across India.
Crompton offers the following consumer goods:
The company offers a range of fans, which are affordable and cost-efficient. Crompton holds a good name when it comes to its fan collections. It is quite popular and widely used by many Indian houses for its reasonable pricing and innovative designs.
The different types of fans offered by the company are:
- Table fans
- Ceiling fans – offers options like Silent fans, Ceiling fans with LED lighting, Modern designer fans, Air 360 fans, etc
- Pedestal fans
- Exhaust fans
- Wall Mounted Fans
- Kitchen fans
Crompton plays it like a smart brand with its comprehensive lighting. They have lighting designs for every mood. Here’s a look at the types of lighting offered by the company:
- Smart lighting – Smart LED bulbs, Smart LED Battens
- LED Bulbs – like Twist Lamp, 5 Star range Lyor,
- Table Lamps
- Conventional Lamps – like Tublelights, Halogen
- Ceiling Lighting – LED Recessed Panels, LED surface Panels, LED Spotlights
Crompton is also engaged in offering electronic home appliances that are needed for everyday use. The products category in Home appliances offered by the company are:
- Smart Appliances – Smart Aircoolers, SmartPlug
- Heaters and Geysers – Storage water heaters, instant water heaters, immersion rods, etc.
- Room heaters – Heat convectors, Ceramic heaters, etc.
- Food Preparation – Mixer grinder, Induction cooktop, Electric kettle, etc.
- Air Coolers – Personal Cooler, Tower coolers, Window coolers, etc.
- Electric Irons – Dry irons, Steam irons
Crompton has also engaged itself in offering some of the best kitchen appliances. The following are the types of Kitchen appliances by Crompton:
- Chimneys – Curved chimneys, Box chimneys, Inclined chimneys, etc
- Kitchen Hobs
- Dishwashers – Free-standing dishwashers, Built-in dishwashers
- Built-in Microwaves and Ovens
The company offers an ample range of consumer pumps for utilisation in both household and other special applications. Different consumer pumps offered are:
- Agricultural Pumps – Agricultural Submersible Pumps, Centrifugal Monoset
- Residential Pumps
- Solar Pumps
- Speciality Pumps – Dewatering, Pressure Washing, Swimming Pool Pumps, etc.
Crompton – Revenue Model
The revenue of the company as of March 31, 2022, stands at $676.8 million (Rs 5,394 crores). Crompton generated $540.9 million (Rs 4,311 crores) from Electric Consumer Durables and $135.9 million (Rs 1,083 crores) from its Lighting Products.
This was nearly a 12.3% increase from the previous year when the company recorded a revenue of $602.6 million (Rs 4,803 crores).
Crompton – Funding and Investors
Crompton Greaves Consumer Electricals has two investors. The most recent investors are Advent International and Temasek Holdings. However, the amount invested is undisclosed.
In June 2022, the company said that it plans to raise long-term funds up to Rs 925 crore through the issuance of NCD (Non-Convertible Debentures) on a private placement basis. The fundraising will however be subject to the company’s borrowing limits as approved by the shareholders.
Crompton – Mergers and Acquisitions
On February 22, 2022, Crompton Greaves Consumer Electricals acquired Chennai-based Butterfly Gandhimathi Appliances. They paid Rs 2,076 crore for the acquisition.
The social media presence of Crompton can be said to have a decent existence. The company does know how to do social media marketing by targeting its customers based on demographics and psychographics. Its follower and subscriber count as of August 2022 are:
Crompton – Advertisements and Campaigns
The Secret of Fine Taste Advertisement
Just a few months ago, Crompton launched its latest campaign called “The Secret of Fine Taste”. The campaign was launched with the motive to unveil its range of Ameo Neo Mixer Grinders. The ad shows slipt videos of two people – one using a normal grinder and the other one using Crompton’s mixer grinder. The idea behind this ad is to show how Crompton’s Ameo Neo Mixer Grinder is the perfect way to have a finer grinding outcome as compared to other mixers. The brand has smartly added two subjects to show how one should live life conveniently and enjoy any meal with a finer grinding experience.
Another campaign by Crompton was called the #JaldiCooling campaign to deliver the message of its air cooler’s ability to cool the room instantly. In just 30 seconds, the brand rightly sends its message and capture’s our attention in the video.
Crompton – Awards and Achievements
Crompton has won some major awards, which are as follows:
- Crompton won the prestigious “Brand of the Decade” award from Herald Global and BARC Asia (2021-2022).
- Crompton won the Corporate Award at the 22nd Edition of ‘India’s Top 500 Companies’ Hosted by Dun Bradstreet India (2022).
Crompton – Challenges Faced
One of the major challenges faced by Crompton is the pressure to keep up with the competition. While the company has already made a place in providing quality and durable consumer electrical goods, it still faces competition from other players in the market.
According to a source, the retail business of Crompton was operational in almost 60% of electrical consumer goods stores across the country during 2019-2020.
The shares of Crompton’s market fell at 0.95%, while Nifty gained in a trading session quite recently in June 2022.
Crompton – Competitors
The consumer electrical industry is rapidly growing, so it is obvious that Crompton has some competitors in the market today. Some of the top rivals of Crompton are:
- Bajaj Electric
- TTK Prestige
- IFB Industries
- Khaitan Electricals
- PG Electroplast
- Stove Kraft
- Value Ind
Crompton – Future Plans
Crompton’s future plans look like it is planning to launch an in-built kitchen appliances segment in India very soon. They aim to become India’s key player in the kitchen appliances market and expect to earn revenue of around Rs 400 crore from the in-built kitchen appliances themselves.
With their acquisition of Butterfly Gandhimathi appliances, Crompton expects to have benefits on both the cost and revenue front.
What type of company is Crompton?
Crompton also known as Crompton Greaves Consumer Electricals Limited is an Indian consumer electronics company.
Who is the CEO of Crompton?
Mathew Job is the current CEO of Crompton (2022).
What is Crompton’s revenue in 2022?
The revenue of Crompton Greaves Consumer Electricals Limited as of March 31, 2022, stands at $676.8 million (Rs 5,394 crores).
Who acquired Butterfly?
Crompton Greaves Consumer Electricals Limited acquired the Chennai-based Butterfly on 22nd February 2022 for Rs 2,076 crore.
Who are Crompton’s competitors?
The following are some of the most prominent competitors of Crompton:
- Bajaj Electric
- TTK Prestige
- IFB Industries
- PG Electroplast