CORPORATE STORY ON CROMPTON GREAVES LTD.

By: Group A-1 MAUSAM KUMAR SINGH SWATI KUMARI HIMANGSHU MAHTO LOKESH RANJAN

COMPANY PROFILE

CEO
YEAR OF ESTABLISHMENT TYPE INDUSTRY HEADQUARTER

Laurent Demortier 1878 Public Company Electrical

Mumbai,India

Vision:
We strive to create lasting value for all our stakeholders through extraordinary efforts. With integrity, imagination and respect for individuals.
.

Misson:
Crompton Greaves corporate mission is to create value by
providing integrate solution and superior knowledge based

product service for its global customers in the T&D

(Transmission & Distributions) of electricity market.

Company Objectives:

Primary Objective

To study the effectiveness of marketing activities of Crompton greaves ltd.

Secondary Objective

To give the suggestions regarding those problem to

the company. To study the various factors that influence the

consumer purchases the product of Crompton

greaves ltd.

Achievement and Recognitions.

The manufacturer of the largest rating of power transformer (320 MVA)to leave Indian shores
The first Indian company to introduce Polycrete insulation technology for medium-voltage outdoor dry type-voltage apparatus; The first Indian company to develop silicon-free electrical stampings,and to introduce low-voltage induction motors with silicon-free electrical stampings; The first company to develop brushless DC motors for fans used in Indian Railways. First ISMS - Information Security Management System certification in Engineering sector.

Awards:
Annual Intellectual property Award for Design 2010-11

CII National Award (Excellence in Innovative energy saving product) 2010

DSIR National Award (Best R&D Efforts in industry) 2007

Golden peacock Award (Innovative product service) 2007-08

India Power award (1200kV class capacitive voltage transformer) 2009

4 ps

PRODUCT
Consumer products
Power systems
Fans Transformers & reactors Switchgear products

Appliances
Lighting Pumps Wiring accessories

Transformer & switchgear components

Industrial systems
Motors:high /low voltage AC & DC Generator AC/DC

Traction motors

PRICE:
Premium price but affordable

Prices are determined as per the terms of negotiation incase of industrial goods

PLACE
20 manufacturing divisions Widely presence in the different regions of different countries

PROMOTION
Crompton greaves is completely focused on market.

To ensure that its objectives are fully realized it has

launched two consumer driven initiatives:

The first christened CG-MILE- Crompton greaves

marketing initiatives towards leadership excellence.

The second is based on broad-based customer meet.

BCG MATRIX

STAR
HIGH

QUESTION MARK??? Commercial motors Industrial driver systems DOG Battery operated vehicle Railway signals
LOW

G Consumer Appliances R Switch gear O T H

CASH COW
LOW

R A T E

Transformers Diesel engine Pumps

HIGH

RELATIVE MARKET SHARE

PORTERS 5 FORCES MODEL

PORTERS 5 FORCES MODEL

Threat of new entrants-Relatively less Bargaining power of supplier-very high Bargaining power of Buyers-very less Threat of substitutes-Nil Competitive rivalry within the industry-Moderate

SWOT ANALYSIS

STRENGTH:
O Wide product range O Major presence in domestic power market O Highly committed engineering technical and managerial

manpower

WEAKNESS
Technology development constraints. Limited financing capacity

OPPORTUNITIES

Growth rate of economy Boosts to power transmission sector

THREATS
Delay/deferment of projects, adverse impact on domestic

business.

Technology leaders unwilling to share new technologies

and insisting on their terms/imposing licensing restriction on territories.

Profit & Loss A/C INCOME:

As at 31-03-2012

As at 31-03-2011 (Cr.)

(Cr.)
Sales and services Less: Excise duty Revenue from operations Other income TOTAL REVENUE EXPENSES: Cost of raw materials and components consumed and construction materials Purchases of stock-in-trade Changes in inventories of finished goods, work-in-progress and stock-in-trade 6443.31 1265.47 (23.79) 5174.24 1190.19 (95.57) 11615.12 (366.54) 11248.58 62.76 11311.34 10331.35 (326.24) 10005.11 113.32 10118.43

Employee benefits
Finance costs Depreciation and amortisation Other expenses

1466.21
56.70 259.96 1293.74

1181.14
34.34 193.63 1211.33

TOTAL EXPENSES

10761.60

8889.30

Continued..
Extraordinary item

As at 31-03-2012 (Cr.) ---------------

As at 31-03-2011 (Cr.) (38.12)

PROFIT BEFORE TAX

549.74

1191.01

TAX EXPENSES:

Current tax

216.77

293.11

Deferred tax

(34.63)

16.88

PROFIT AFTER TAX

367.60

881.02

Balance Sheet
SHAREHOLDERS FUNDS:

As at 31-03-2012 (Cr.)

As at 31-03-2011 (Cr.)

(a) Share capital (b) Reserve and surplus MINORITY INTEREST NON-CURRENT LIABILITIES: (a) Long-term borrowings (b) Deferred tax liabilities (c) Other long-term liabilities (d) Long-term provisions

128.30 3482.64 15.66 616.26 135.59 170.64 64.70 987.19 368.59 2107.58

128.30 3146.38 15.72 303.10 124.43 207.17 58.74 693.44 92.39 1858.47

Total Non-Current Liabilities

CURRENT LIABILITIES: (a) Short-term borrowings (b) Trade payables

(c) Other current liabilities (d) Short-term provisions

1361.25 313.99 4151.41

1007.57 346.63 3305.06

Total Current Liabilities

Continued NON-CURRENT ASSETS:

As at 31-03-2012

As at 31-03-2011 (Cr.)

(Cr.) (a) Fixed assets (i) Tangible assets (ii) Intangible assets (iii) Capital work-in-progress 1181.88 926.38 109.70 1345.73 485.71 104.19

(iv) Intangible assets under development

(b) Non-current investments (c) Deferred tax assets (d) Long-term loans and advances CURRENT ASSETS:

39.57
285.26 186.89 34.17

5.57
271.90 108.42 59.37

(a) Current investments

(b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances

501.15
1223.27 3143.26 497.59 488.06

402.81
1189.25 2542.72 298.40 376.44

(f) Other current assets

148.02

98.39

Cash Flow Statement

CASH FLOWS FROM OPERATING ACTIVITIES

As at 31-03-2012

As at 31-032011 (Cr.) 1229.13 193.63 7.98 35.21 (14.28) (0.06) (16.91)

(Cr.) Profit before taxes Depreciation and amortisation Allowance for doubtful debts and advances Interest expenses Interest income Income from investments (net) Profit on sale of investments (net) 549.74 259.96 10.41 57.63 (10.36) (0.05) (16.11)

Unrealised exchange (gain) / loss (net)

Unrealised foreign exchange gain on consolidation (net) Loss / (Profit) on sale of fixed assets (net)

(2.58)
35.73 (5.71) 328.92

(17.04)
(14.62) (2.53) 171.38

Operating profit before working capital changes

Changes in working Capital Cash (used in) / from operations Direct taxes paid (net of refunds) Minority interest in income Share of profit / (loss) in associate companies

878.66
(227.73) 650.93 (243.59) 0.65 5.34

1400.51
(507.03) 893.48 (334.26) (0.37) 8.02

Continued.
CASH FLOWS FROM INVESTING ACTIVITIES

As at 31-032012 (Cr.)

As at 31-03-2011

(Cr.)

Add: Inflows from investing activities Sale of fixed assets Cash and cash equivalents acquired pursuant to acquisition of subsidiary companies Interest received Income received from investments (net) 326.82 11.24 11.18 0.05 349.29 Less: Outflows from investing activities Purchase of fixed assets (372.35) (746.13) 113.91 1.09 14.17 0.06 129.23

Purchase of investments (net) Changes in investment in associate companies Acquisition of subsidiaries and associates

(83.02) (5.34) (350.88)

(811.59)

(85.18) (19.04) (34.85)

(885.20)

Continued.
CASH FLOWS FROM FINANCING ACTIVITIES

As at 31-03-2012 As at 31-03-2011 (Cr.) (Cr.) 11.42 346.08

Changes in minority interest Proceeds from long-term borrowings Less: Outflows from financing activities Changes in minority interest Repayment of borrowings Interim dividend paid Corporate dividend tax Interest paid Net cash (used in) / from financing activities
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C)

-----729.33

(0.06) (306.58) (102.52) (16.75) (55.26) 248.16 199.19 298.40 (383.98) (102.43) (17.03) (35.38) (181.32) (370.42) 668.82

Cash and cash equivalents at beginning of the year

Cash and cash equivalents at end of the year

497.59

298.40

Ratio
YEAR
CURRENT ASSETS

2010-11

2011-12

4908.01
CURRENT LIABILITIES

6001.35 4151.41

3305.06
CURRENT RATIO

1.48
2010-11
881.02

1.45
2011-12
367.6

YEAR
Net Profit

Total Capital Employed

3408.86

4002.88

ROCE

25.84

9.18

YEAR Long term Debt Equity Debt- Equity Ratio YEAR

2010-11 303.1

2011-12

616.26

3274.68 0.09 2010-11 2011-12

3610.94

0.17

Interest on loans
PBDIT

34.34
1457.11

56.7
866.4

Interest Coverage Ratio

42.4

15.3

HR POLICIES
1.Recruitment & selection
O Pre-application Process O Post-application Process O Interview

2.Training & development

For managers-business leadership programme Seminar Conference, workshop Leading institutes.

3.Performance appraisal
360 degree performance appraisal.
Behaviorally anchored rating scale.

4.Compensation & benefits

Salary Bonus TR,DA.

5.WELFARE & HEALTH FACILITIES

Medical check up. Sports facilities Recreation centre.

6.WORK CULTURE
Individual freedom to work Learn new concepts.

Corporate Social Responsibility

Improve infrastructure facilities of schools through renovation of school buildings , providing amenties and financial subsidies for better teaching staff. Company is spreading awareness about HIV/AIDS though different programs and events

CG is also a key participants in udaan a programme initiated by

govt. of India together to improve professional skills of students from the state of Jammu & Kasmir

OUR REFFERENCES:

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