Would deploy newer tech, ramp up distribution network, says Crompton Greaves Consumer Electricals

Crompton Greaves Consumer Electricals Ltd is looking to deploy newer technologies and platforms such as smart IoT (Internet of Things) and energy-efficient technologies across its product segments as advanced connectivity and digitisation are fast becoming the cornerstone of the industry, said the latest annual report of the company.

The industry is witnessing a rise in consumer preference for smart, intelligent and connected products, which is driving demand for technologically advanced electrical consumer durables in India, said CGCEL (Crompton Greaves Consumer Electricals Ltd) chairman Hemant Nerurkar.

''This is further augmented by the government policies and initiatives to promote better and more sustainable products. Rapid urbanisation and the resultant growth in housing are also major growth drivers in the segment,'' said Nerurkar while addressing shareholders.

Moreover, a growing working population, higher disposable incomes, easier access to credit and improving the standard of living are also driving demand for home appliances.

''Improved electrification of rural areas is again serving as one of the key enablers driving this segment in rural India,'' he said, adding CGCEL has noticed the emerging market trends and making considerable investments in R&D.

CGCEL, which operates in consumer durables and lighting space, will continue to invest in R&D with a focus on producing innovative, value-added products, the annual report said.

Moreover, after COVID-19 pandemic, a notable shift has been witnessed in online buying and e-commerce.

It ''will continue to ramp up its distribution network and increase presence in modern trade, rural and e-commerce channels. It is also looking at deploying newer technologies and platforms such as smart IoT, energy-efficient technologies across its product segments,'' said CGCEL.

In the lighting business, CGCEL aims to clock strong growth in the B2C segment ''by launching more innovative and differentiated products around emerging or connected segments such as ceiling lights and battens and IoT products''.

''Further, it continues to aggressively spend on marketing and advertising to enhance its brand recall and consumer awareness,'' it said.

In the consumer appliances, it will continue to expand its portfolio across categories and offer competitive products across price points with more features.

According to CGCEL, the electrical industry has immense growth potential, especially considering the increased penetration of electricity and home improvement drive.

''Post the COVID-19 pandemic, a notable shift is being seen in online buying and e-commerce. Advanced connectivity and digitisation are fast becoming the cornerstone of the industry. Brands need to step up their digital footprint and capabilities to fulfil evolving demands and improve customer experience,'' it said.

After gaining a leadership position in the fans and pumps division, CGCEL now focuses on enhancing the lighting and appliances divisions.

''It also continues to evaluate organic opportunities, which will accelerate the growth momentum and business strategy,'' the annual report said.

The Rs 2,076-crore acquisition of 81 per cent stake in Butterfly, a kitchen and small domestic appliances maker in FY22, will ''immensely'' benefit and enhance its share in the segment by leveraging Butterfly's manufacturing facilities, R&D capabilities and distribution network.

For the financial year ended on March 31, 2022, CGCEL standalone revenue from operations was at Rs 5,373 crore.

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