Copyright 2013 by The Boston Consulting Group, Inc. All rights reserved.

Management presentation
DEMERGER AND THE WAY FORWARD

CG Investor Presentation v17.pptx

Draftfor discussion only

Disclaimer!
Certain statements in this Investors Forum concerning our future growth prospects are forward-looking statements,
which involve a number of risks and uncertain+es that could cause actual results to dier materially from those in such
forward-looking statements. The risks and uncertain+es rela+ng to these statements include, but are not limited to, global
economic condi+ons, the economic condi+ons of the regions, loca+ons and industries that are major markets for
Crompton Greaves Limited (CGL), risks and uncertain+es regarding uctua+ons in earnings, our ability to manage
growth, intense compe++on in sectors where we operate including those factors which may aect our cost advantage,
wage increases in India and worldwide, trends in raw material prices, market acceptance of new products and services,
changes in governmental regula+ons and costs associated with compliance ac+vi+es, withdrawal of governmental scal
incen+ves, poli+cal instability and regional / loca+onal conicts, legal restric+ons on raising capital or acquiring companies
within and outside India, and unauthorized use of our intellectual property, interest rates, uctua+ons in currency
exchange rates and general economic condi+ons aec+ng our industry.
CGL may, from +me to +me, make addi+onal wriRen and oral forward-looking statements, including statements
contained in the company's lings with the Stock Exchanges and Securi+es and Exchange Board of India and our reports to
shareholders. The company does not intend or undertake to update any forward-looking statements that may be made
from +me to +me by or on behalf of the company.

CG. Conden+al. All rights reserved

2
2

Agenda
CG at a glance
Rationale and plan for demerger
Way forward
Crompton Greaves Ltd (CGL)
Crompton Greaves Consumer Products Ltd (CGCPL)
Q&A

CG today: Two different businesses under the same umbrella

Engineering and infrastructure

Domestic electrical appliances

Customer

EMEA
35%

Regions(1)

Americas
18%
India
35%

Channels
Key success
factors

SE Asia
12%
100%

Direct

Multichannel

Technology
Cost leadership

Brand
Products
Marketing

(1): Revenue split by geography for FY14.

Two strong businesses

Agenda
CG at a glance
Rationale and plan for demerger
Way forward
Crompton Greaves Ltd (CGL)
Crompton Greaves Consumer Products Ltd (CGCPL)
Q&A

Right time for the demerger

Market conditions
CGL

CGCPL

Why are we ready?

Demand revival for energy efficient

and smart grid infrastructure

Integration of acquisitions completed

and synergies captured

Market moving
towards consolidation

CGL has reached the critical mass

to establish global position

Consumer demand revival

Consumer business has reached the

right size to operate independently

Increasing preference for brands,

faster product cycles, larger
premium segment

Crompton is a brand ready to be

leveraged for acceleration

Two potential leaders

Benefits of the de-merger are substantial

Strategic

Operational

Agile and
focussed strategies

Specialized board
and management

Compete with distinct

competitors in channels
and products
Potential to tie up with
global partners

Simplified
organization structures
Customised infrastructure
and processes

Strong potential to create value

Financial
Unlock shareholder value
Cost and cash
cycle optimization
Focused
investor opportunities

Two entities going forward

CGL
Systems

Services

CGCPL
Appliances

SE Asia
Americas

FY 2014
revenue mix

India

Pumps

Fans

Light
Products

Revenue
growth

Key product
segments

Key customer
segments

EMEA

FY 2011 to FY 2014 growth: 9%

FY 2011 to FY 2014 growth: 12%

Power T&D
Power conversion motors,
generators and drives
Automation solutions

Households
Commercial
Institutions

Power and utilities

Railways
Oil and gas
Mines and minerals

Air circulation
Lighting
Consumer water products
Home and kitchen appliances

Focused and agile businesses

Demerger structure and shareholding

Public

Promoters

57%

43%

Public

32%

CGL

43%

CGCPL
25% plus one share

Industrial

Indicative
timing

Brand
arrangement

Power Systems

October 2014 August 2015: requisite filings approval from stock exchanges,
shareholders, creditors and high court
Q4 CY2015 proposed listing of CGCPL
Trademark Crompton Greaves to be assigned to CGCPL
CG logo shall continue to be used and developed by CGL

Agenda
CG at a glance
Rationale and plan for demerger
Way forward
Crompton Greaves Ltd (CGL)
Crompton Greaves Consumer Products Ltd (CGCPL)
Q&A

10

10

Copyright 2013 by The Boston Consulting Group, Inc. All rights reserved.

Crompton Greaves Ltd (CGL)

CG Investor Presentation v17.pptx

Draftfor discussion only

11

CGL has been on a transformational journey

Build
Increased
revenue

Improved
presence in
key markets

Acquisition

Consolidation

2005

2011

2014

3.2

8.0

10.5

Indian Play

International expansion
with distributed field force

Regional focus with Strong

focus on EMEA

Largely electrical products

(EHV range)

Expanded electrical range

to UHV (765kV)

Best in class electrical

and electronic range,
expanded to 1200 kV

Introduced range of motors

and traction electronics

Widened
product portfolio
and improved
technology

Strong systems offering

and growing services
business on large
installed base
<500

Increased
customer access

Source: CGL internal data.

Introduced drives
and automation

<2K

>5K

Largely India based utilities Started making inroads in

select industries

Revenue INR '000Cr

Approved in several
global utility and
industrial players

# of customers

12

12

We have invested in moving up to high-end plays

Electrical Products Key segments and CGL presence

Acquisitions

2,500 Cr(1)

Manufacturing

1,000 Cr(2)

Low
Large ticket size

No. of competitors

CGL
in 2014

High-end
Ultra high voltage
Large ratings
Value-added solutions
Turnkey play

T&D: UHV research center (1600 KV)

Power conversion: BCC manufacturing in India,
LRM plant in Bhopal
Mid-end
Mid to High Voltage
Medium ratings
Product Play

CGL in 2011

Automation: Smart Grid lab (Spain), plant

in Bangalore

Technology

400 Cr(2)

1200KV PT, IT, LA

Low-end
Low ticket size

Low Voltage
Non-Industrial

Only Niche LVRM play in this segment

245KV GIS, SLIM / BIO SLIM

IE2 / IE3 motors, IP21 drives, Global design center
AMI (Smart Meter), DAS, SAS

High

(1)
(2)

Investments from 20052014 on acquisitions Exchange rate assumption INR 65 / Euro.

Investments from 20112015.

13

13

Today, we are a significant player across segments

Power T&D

Offering

Technology

Geography

Power Conversion

Automation Solutions

~100,000 MVA power

transformer capacity
globally (majorly in BCC)

No.1 rotating machines

player in India

1.5 Mn p.a. smart

meters capacity

Full range of IE2 motors,

IE3 launch by FY 2015

Transmission and
distribution solutions

100th UHV transformer

to PGCIL in 2014

State-of-the-art large motor

manufacturing facility

>20 AMI projects /

pilots globally

First Indian indigenous

maker of 800 kV
circuit breakers

Executed 10 MW (4-pole)
large motor

First Smart Grid facility

in India

Focus on EMEA and India

Focus on EMEA and

India where we are large
OEMs and leading
end-users

Among top six esteemed

suppliers for Linky, France

50% of Europes offshore

wind farms use
CG transformers

Extensive presence in
Europe and India

14

14

These investments have helped grow the business we have in the

more attractive market segments

CGL Revenue & drivers (March 2012 March 2014)

INR Cr.

H1 FY 15 ~ INR 5,363 Cr2

~7%
9,015

10,294

9,171
3,304

+44%

1,054

860

(28%)

5,675

6,131

6.8%

1,599

2,442

1,678

5,739

FY 11-12

CAGR

FY 12-13

FY 13-14

22% growth in high-end UHV play

28% growth in high margin India exports3
~690 Cr automation segment created
97% growth in high margin services
31% growth in profitable EMEA systems
18% growth in Railways vertical

>50% de-growth in low margins 400kV

segment
10% reduction in share of low profitable US
& India Systems1
Attractive segments
Unattractive segments
Base business

Source: CG internal data; Annual reports.

1. Change from FY 12-13 to FY 13-14.
2. From the board presentation (may include IDT).
3. Only includes Power BU exports.

15

15

Market has been challenging but is in a phase of transition

Markets declined but expected to revive
Global Power T&D Capex ($ bn)(1)

Margin(4) dip tough but stabilizing

Margins(4)
Slowdown
phase

20

205

2005

+6.8%

+1.4%

+8.5%
262

2008

234

2011

369

284

2014

India and EMEA

to account for
45%50% of
T&D capex in
future(2)

ABB(5)
10

Alstom(6)
TBEA
CG

2018

Global Nominal GFI $ '000 bn(3)

Uptick

Hyosung

Siemens(7)
+11.3%
10

2005

+7.0%

+4.1%
13

2008

15

2011

17

2014

22

2018

India and EMEA

to account for
30%35%
of GFI(3)

-10
FY
0708

FY
0910

FY
1112

FY
1314

Margin pressure easing out, uptick continues

in H1 FY 20142015

Source: Economist Intelligence Unit, CG Update Nomura Analyst report (Dec'13), Analyst Reports / Declaration, World Energy Investment Outlook 2014, GBI Research 2012
(1) GBI Research 2012; (2) World energy outlook 2014. (3) GFI Total business spending on fixed assets, such as factories, machinery, equipment, dwellings, and inventories of
raw materials. (4) Margins OI + D&A 5. ABB Power Products & Power Systems margins considered. (6) Alstom Grid data available only for last 4 years; Segment created only then.
(7) Siemens Power Transmission EBIT considered (Nomura Analyst Report).

16

16

Part of the FY 12-13 EBITDA decline due to one-time costs,

improvements visible in FY 13-14
Consolidated EBITDA bridge (March '12 March '14)

EBITDA (%)
10

2.2

-3.5

Recurrent benefit due to

one-time costs

3.6

-2.9

6.2
-3.0

4.9

2.3
1.9

EBITDA
FY 11-12

Ongoing
Improv
ements
(BTP)1

Mkt. Pricing
Pressure

One-time
costs

1.2% in restructuring & COPQ

cost4
1.8% market access cost2

EBITDA
FY 12-13

Recurrent
benefits
from onetime costs

Ongoing
Improv
ements
(BTP)1

Mkt. Pricing
Pressure

EBITDA
FY 13-14

0.8% by reduction in employee costs

0.3% improvement due to increased India
exports, UHV play & Automation
1.2% reduction in process cost3

Source: CGL internal data; Annual Reports; Internal pricing estimates.

1. Improvements after adjusting for price decline & includes material cost reduction due to market scenario. Also netted off for process cost increase in FY 13.
2. Market access cost is the increase in employee cost due to front-end and back-end investments.
3. Process Cost improvement significant in international operations; 4. Additional 120 Cr below the line.

17

17

Key themes Power / Industrials

India and EMEA to account for 45%50% of T&D capex in future(1)
Recovery in
international
markets

Automation orders driven by increasing investments in smart grids

Margin recovery from higher margin automation orders as compared to
power transformers
Complete and customized offerings including EPC to create strong
competitive advantage
India recovery delayed but expected to deliver strong growth in T&D and Power
Conversion in the longer term

India capex
spends
improving

Conducive macroeconomic environment and policies to drive further power

capacity addition in the country
Increased spends expected in the high end T&D space to meet the higher
demand requirements
Automation / smart grid solutions are becoming increasing relevant
Revival in domestic industrial capex cycle with new government initiatives

Robust
industrial
demand

Stricter regulations for energy efficiency to drive robust growth in demand for
energy efficient motors
Product offering to railways expected to witness better demand going forward
with pending deliveries being cleared

(1) World energy outlook 2014.

18

18

3 scenarios exist for CGL's future direction

"Multi-local"
In-country supply
chain

"Focus: EMEA+ India"

Optimized sales & mfg
footprint

Continue to play
across regions
India, EMEA, SEAP
& NAM

Build front end sales

focus in EMEA and
India

Supply from local

factories

Add footprint in BCC

to serve these
markets

Technology adds
relevant to region

Continue to invest in
technology

"Expansive Play"
Partner to enter new
segments

Global sales focus

New segment entry
using partnerships
Acquisitions for
technology &
customer access

19

19

"Focus: EMEA+ India" is best suited for CGL at this point

"Multi-local"
In-country supply
chain

"Focus: EMEA+ India"

Optimized sales & mfg
footprint

"Expansive Play"
Partner to enter new
segments

Economics

Moderate
margins with
continued
investment

Investments
required to continue
to move up the
value chain

Partner will share in

the value created
over the next few
years

Sustainability

Short term
growth with high
long term
unpredictability

Sustainable
position in key
growth markets
(EMEA, India)

Broad based
presence with
sustained
investment

Loss of cost
competitiveness

Market recovery &

investments
Competitive
response

Finding the right

partner
Integration of the
key technologies

Risks

?
20

20

"Focus: EMEA+ India" is based on three pillars

1

Offering

Acquire technology for Highend products in T&D and

power conversion
Value-added
automation solutions
Systems play in Europe
and SEA

Footprint

Geographical focus
(EMEA, India)
Vertical specialization (power,
railway, oil and gas) and key
account management

Manufacturing and
Cost Excellence

India Hub for manufacturing

Best cost
country sourcing
Lean operating model
Vendor Rationalization and
Centralized Procurement

Services play $10bn

installed base

21

21

CGL has developed a strong offering of high-end and competitive

products with different routes to market
Automation
Solutions
UHV transformers
High voltage SG
and motors

Automation(1)
Strong INR 700 Cr.(2)
revenue
Good ~8%10% EBITDA(3)
Market growing at a strong
rate of 15%

22%

LVRM IE2 / IE3

motors introduced
4%6% margin benefits

430

289

Exports

FY
1112

808

FY
1314

Exports share in India

production increased to
26% in H1 FY 2015

CG internal data.
ZIV acquisition made in FY 1112.
Figures for FY 1314; Last 3 years average.
Only Power BU exports considered.

FY
1314

Systems

Export Revenue(3) (INR Cr.)

28%

Source:
(1)
(2)
(3)

UHV revenue (INR Cr.)

FY
1112

496

Business models
Margin
improvements

Power Conversion

LRM Entered > 3 MW

Success in 6MW bid

High-end
products

Enhancing
route to market

T&D

Service

EMEA UEOB ( Mn)

15%
115
FY
1112

Service Revenue INR Cr.(2)

153

FY
1314

~INR 110 Cr. negative

working capital
~INR 3035 Cr. cash
inflow from operations

97%
44
FY
1112

171

FY
1314

Growing strongly in services

driven by installed base
$10bn installed base
in EMEA

22

22

Focus on EMEA + India will translate to a different footprint over

the next few years

FY 20042005

FY 20132014

Exports

Target

Exports

10.0

Asia In-country

21.0

Supply model
towards cost
competitive Asia

50.0
79.0

90.0
Asia In-country

EMEA

Asia In-country

Exports

NAM
10.0

Diversified
customer base
with focus on
EMEA and India

50.0

NAM
10.0

India

18.0
35.0

35.0

90.0

EMEA
India

India
35.0

40.0
12.0

EMEA
SEA

15.0
SEA

23

23

In summary: Our strategy combines capabilities of BCC and front end

acceptance in European markets

European players

Best in class technology

and quality
Wide geo-footprint
Strong service focus
and installed base

Relatively high cost

supply base

CG strategy

Leverage technology
and installed base from
EU acquisitions
Front-end focus in
EMEA and India with
on ground presence

Low cost country players

Relatively behind
on technology
Low service focus and low
installed base as entry in
last 10 years
Poor quality perception

Cost competitive supply

base in India

Low cost
manufacturing units

Invested in building R&D

capabilities in India

Low cost and flexible

R&D setups

24

24

5 key segments for CGL to focus on ...

Annual Report
Segments

Key segments

Power Products T&D

Power

Power Systems &

Services
Automation & Smart
Grid solutions
Power Conversion

Industrials

Transport & Defence

Brief Description

Transformer & switchgears offerings

Full T&D system implementation and
service of installed base
Value added solutions for substation
& distribution automation
Motors & drive offerings for power
conversion to industrial business
Dedicated vertical focused offerings
including products above as others
e.g. Rail Signalling

1. Excluding Electric Transportation revenue

Note: Doesn't includes Jalgaon

25

25

We have a very senior management

team with significant relevant experience

Laurent
Demortier
CEO and MD

CEO-MD since Jun-2011

Over 25 years of
experience and has
worked with Alstom,
Honeywell, etc.

Noberto Santiago
President,
Automation

Ex-CEO and President of

ZIV (which he founded 20
years ago)

Madhav Acharya
CFO & CIO

Leads Global Finance

(incl. M&A)
A part of Avantha Group
for last 12 years

Sanjay Singh
Global Head - HR

Extensive experience in
HR best practices
globally
Previously Tata Motors
CV Business HR Head

J. G. Kulkarni
President,
Power BU

34 years of experience in
the industry
Actively involved in CII,
IEEMA, ERDA

Srinivas
Ponnaluri
CTO

19+ years of R&D

experience
Worked with ABB,
Bombardier, etc. and is a
owner of 15 patents and
multiple publications

Anil Raina
President,
Industrial BU

Over three decades of

global experience
Deep management
experience in design and
marketing projects

Ravi Rajagopal
EVP Legal,
Secretariat & Risk

27+ years of experience

working with Essar steel,
Vedanta Resources, JP
Industries, etc.

26

26

Copyright 2013 by The Boston Consulting Group, Inc. All rights reserved.

Crompton Greaves Consumer Products Ltd

(CGCPL)

CG Investor Presentation v17.pptx

Draftfor discussion only

27

Top 3 domestic
small consumer durables player in India
FY14 revenue of ~INR 2,900 Cr
with EBITDA of 12.3%

Highest growth in revenues & highest

ROCE compared to peers

Revenue & EBITDA Margin (%)

INR Cr.

+16 %

3000

2,847

1800%
1600%

2,134
1,604

2000
1500

11.10%

14%

51%

13%

82%

16%

195%

1400%
1200%

12.70%

ROCE FY 14 (%)

2000%

2,593
2500

Revenue Growth
FY 1214 (%)

12.30%
12.34%

1000

1000%
EBIT
in
FY'15 H1
800%
600%
400%

500

Crompton

200%
0

0%

FY12

FY13
EBITDA (%)

Source:

FY14

FY15 H1

Revenues (Cr)

Crompton has the highest ROCE due to market

leadership in air circulation and residential pumps
and a tight, largely outsourced model (~60% sourced
through vendors)

CG internal data, Analyst reports (Ambit report dated September 2014).

28

28

We have a strong brand with the promise of quality and reliability

reflecting in each of our product offering

"Crompton taught
everyone how to make
good fans"
"Quality of Crompton's
LED is good, and price is
better than Philips, so good
positioned"

"Crompton delivers what

it promises..."

Reliability

Quality

"Crompton is like a father

figure - stable, reliable
and responsible"

Crompton

"Crompton products are good,

sturdy"

Durability

Trustworthy

"Good brand with trusted

quality"
"Crompton is an old and
trusted brand"

Source: CG internal data

29

29

Our brand resonates well among consumers for each of our

product segments
Our core brand
promise

Durability

Quality

Reliability

Trustworthy

Why consumers purchase Crompton products?

Consumer Water
Products

Home & Kitchen

appliances

Air circulation

Lighting

Long Life

High warranty

Low replacement
cycle

High speed air

circulation &
trouble-free

High brightness,
low power
consumption, good
technology

Higher star rating in

water heaters

BIS mark
Multi-purpose use

Good after-sales
service

Low maintenance
Good after-sales
service

Low maintenance

Recommended by a
trusted source

Retailer recommendation

Peer
recommendation

Crompton brand
equity

30

30

Strong performance across all product segments

Air circulation

Lighting

Consumer water
products

Home and kitchen

appliances

13%

10%

2%

20%

Revenue
(FY 1214)
(INR Cr.)

837

FY 12

Market
position and
market
share (%)

Our
positioning
vs. closest
competitor

Source:

1,201

685

FY 14

FY 12

879

552

FY 14

FY 12

665

60

63

FY 14

FY 12

FY 14

No.1 position with

26% market share,
very strong hold in
ceiling fans

Top 3 position; 14%

market share in
conventional lighting;
strong position in LED

No.1 position in
domestic pumps, top 4
in water heaters, 10%
market share

Relatively newer entrant

in kitchen appliances;
new segments to
be launched

CGCPL: Wide product

portfolio
Closest competitor:
Leadership only in
premium segment

CGCPL: Value offering

with mid-range pricing
Closest competitor:
Strong brand and
awareness

CGCPL: Superior
domestic portfolio with
excellent service
Closest competitor:
Distant No.2
in domestic

CGCPL: Value offering

across
price segments
Closest competitor:
Strong presence in
kitchen and home

CG internal data, Analyst reports (Ambit report dated Sep'14).

31

31

Indian consumer spend is set to increase rapidly in core categories

Overall Indian consumer spend ($bn) to grow by 3.6x...

Housing and consumer durable spend to increase 4x

From $186bn in 2010 to $752bn in 2020

... leading to market expansion in all our core categories

Market size (INR Cr.)

CAGR (%)

37,683

Driven by growth in all key indicators:

33,706
Income growth

Consumer
confidence

~3 times increase in average

household income

India ranks No.1 in Global Consumer

Confidence survey(1)

30,164
27,068

Nuclearization

Growing
work force

Note:
(1)
Source:

40% population will live in urban

cities in 2020 (31% in 2010)

All spends in nominal dollars. Years represented as calendar year.

Nielsen Global Consumer Confidence Survey, Q2 2014.
Euromonitor, NSSO; BCG Indian Consumer Survey December 2010, N=6278.

10%

Air
circulation

12%

8,661

Lighting

12%

6,481
7,724
6,915
6,222

180 m nuclear households growing at 4%

vs. 2% population growth

137 m people will be added to the

workforce by 2020 (total :752 m)

Water
products

7,128

5,963

Urbanization

7,866

5,864

5,188

4,558

13%

6,576

Home and
kitchen
appliances

10,325

11,580

FY 2015

FY 2016

12,990

FY 2017

14,580

FY 2018

32

32

Key themes India consumer

Macroeconomic recovery in urban discretionary demand in India
Consumer
expenditure
story intact

Rural household electrification to drive further growth in domestic

electrical products

Huge untapped opportunity with rural having large share of many categories
Rural the
new focus

Most of the consumption is still un-branded / local brands

Power quality and brand consciousness continuously improving

Shift from unorganized to organized and unbranded to branded

Changing
consumer
preferences

Brand and
distribution
Drivers for
value creation

Premiumization trend to accelerate, especially in the metros / Tier I cities

Brand and distribution penetration key drivers for sustainable

competitive advantage
Advertising critical for driving customer aspiration and brand positioning
Distributor loyalty for on-the-ground push

33

33

Demerger opens new avenues for Crompton

Follow the market
"As-is"

Lead the market

"Transform"

Retain share in strong

market

Build a strong brand

with focus on NPD

Mid-market positioning;
limited portfolio
expansion

Enter adjacent markets

by leveraging sourcing
partners

Enter new markets

"Full consumer play"

Play in a wide range of

attractive consumer
markets
Enter into partnerships,
JV, M&A to access
product and reach

34

34

Transform scenario best suited for Crompton

Follow the market
"As-is"

Lead the market

"Transform"

Enter new markets

"Full consumer play"

Maintain current
margins
Industry leading
RoCE

Industry leading
margins from pricing
and premium portfolio
Moderate RoCE due to
investments

Low margins on
account of split with
partner
Low RoCE from high
investments

Sustainability

Short term growth

along with market
but with long term
unpredictability

Sustainable higher
growth than market

Multifold growth
due to capturing
the entire consumer
growth

Risks

Potential loss of
share to new
entrants as market
shifts

Multi/sub-brand
architecture needs to
succeed

Finding the right

partner

Economics

?
35

35

CGCPL's early consumer connect will be leveraged to enter

successfully in new segments
Our core segments are first to enter a customer's home...
Air circulation

Air
Circulation

Decorative
lights

Consumer
Water
Products
Small
kitchen
appliances

...we will leverage this early consumer connect to succeed in new segments
Large kitchen
appliances
(hoods and hobs)
Personal
care

Rooftop solar lighting

solutions

Street light
automation

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Our four dimensional strategy to transform CGCPL

FY 2014

Target

1
Brand equity

Single brand across

segments
Low youth awareness
Low advertising spend(1)

Multi / sub-brand positioning

High brand awareness
Double advertising spend(1)

2
Offering

Value offering with midrange pricing

Limited portfolio expansion

Premium offerings in air circulation,

consumer water products and
kitchen appliances
New product offering in adjacent
segments

3
Reach

156,000 retailers

270,000 retailers

Urban middle
class customers

Urban elite, urban and small town

middle class customers

Material costs: 74% of sales

Material costs: 71% of sales

4
Cost & SCM
optimization

(1):

Refers to Advertising and Sales Promotion spend.

Further, the organization and processes are being

re-designed to support this transformation

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Crompton will build on this connect and invest in the brand

Brand Crompton (FY 2014)

Single brand for all segments

Brand
equity

Target
consumer

Brand
awareness

Brand equity strongest in air

circulation, lighting and consumer
water products

Strong brand connect with

consumers aged 4065 years

Low awareness among younger

consumers
Advertising and promotion spend
of 1.7%

Brand Crompton (Target)

Multi/sub-brand strategy focusing on

premium, mid-market and rural offering
Clear and differentiated brand strategy
for each segment

Strong brand connect with consumers

aged 2539 and 4065 years

High awareness among

younger consumers
Advertising and promotions spend to
double and to be in line with best in
class
Improved in-store experience

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Full product range to support brand positioning and consumer connect

Air Circulation

Lighting

Consumer Water
Products

Home & Kitchen

appliances

New designs in premium ceiling

fans, air circulators, TPW &
personal fans

Home and street light automation

and pole lighting

Stainless steel pumps, premium

range of water heaters

Premium range of small kitchen

appliances

Current
portfolio

New
products
in existing
range

New product segments

Source: CG internal data

We have already begun development process in many of these

categories

We have already begun development process in many of these categories

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Transformation strategy: Expand our customer base

Urban elite

Buy aesthetic premium products

Brand conscious

Urban middle class

Core segment which historically

drove growth
Demand reliability & performance

Small town middle class

High aspirations
Access / availability is a
challenge

Current focus (42 mn households1 )

Drive premium
offering &
target using
new channels

Leverage existing connect to cross-sell through wider

product portfolio (86 mn households2 )

Drive reach &

nurture loyalty

1. Number of Households in 2015.

2. Number of Households in 2020.

We have already begun development process in many of these

categories

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We have a very senior management

team with significant relevant experience

Ash Gupta
President

Previously President
and CEO at Honeywell
India
Prior to this, he has spent
19 years with GE in
various roles

Premanand Bhat
PL Head - Pumps

32 years of experience
of which 23 years are
with Crompton Greaves
Ltd.
Previously worked as
All India Marketing
Manager Fans and
Marketing Manager
West Region

Amit Ganguly
Finance Head

16 years of Finance
experience
Previously Finance
Controller for Pernod
Ricard India and Finance
Manager for Pepsico
India

Ramesh Kumar
Global Sales &
Service

30 years of experience.
Joined Crompton
Greaves Ltd. in 1990
Through the years has
moved across roles as
AGM, AIMM,
Unit Head and PL
Head Lighting

Dhruva Chandrie
PL Head

20 years of experience
across E-tail, Retail,
Automobiles and
Petroleum
Previously worked with
HomeShop18, Reliance,
Tata and Videocon

Sundar Iyer
Strategy &
Business Planning
Head

21 years of experience.
Previously worked with
ABB Ltd. as Vice
President. Joined
Crompton Greaves Ltd. in
2012 as General
Manager Strategy

Kunal Dhawan
CMO & PL
Head - Lighting

16 years of experience
Previously worked with
companies such as
Aditya Birla Retail, Dabur,
Reckitt Benckiser and
Heinz

Uday Mahajani
PL Head - Fans

35 years of experience
with Crompton Greaves
Ltd.
Started his career with
Pumps division of
Crompton Greaves Ltd.
as General Manager
Accounts in 1979

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Agenda
CG at a glance
Rationale and plan for demerger
Market environment
Way forward
Crompton Greaves Ltd (CGL)
Crompton Greaves Consumer Products Ltd (CGCPL)
Q&A

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