MIRA
INFORM REPORT
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Report Date : |
22.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
CROMPTON GREAVES LIMITED |
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Registered Office : |
6th
Floor, C G House, Dr. Annie Besant Road, Worli, Mumbai- 400 030, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
28.04.1937 |
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Com. Reg. No.: |
11-2641 |
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CIN No.: [Company
Identification No.] |
L99999MH1937PLC002641 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMCO5628A |
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PAN No.: [Permanent
Account No.] |
AAACC3840K |
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Legal Form : |
It is a Public
Limited Liability Company. The company’s Shares are Listed on the Stock
Exchanges. |
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Line of Business : |
Manufacturing and
Marketing of transformers, switchgears, turn-key projects, capacitors,
electric motors - fractional horse power motors, LT motors, alternators, HT
motors, DC machines, rail transportation, fans, luminaries, light sources,
telephone instruments, telecommunication switching, transmission and access
products, EPABX systems and agricultural and domestic pumps, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 46537350 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part
of Thapar Group - a well-established industrial house. Directors are reported
as experienced, respectable and resourceful industrialists. Their trade
relations are reported as fair.
General financial position is satisfactory. Payments are usually correct and as per commitments. The company can
be considered normal for any business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
6th
Floor, CG House, Dr. Annie Besant Road, Prabhadevi, Mumbai – 400 025,
Maharashtra, India |
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Tel. No.: |
91-2662-242324/242278/
24237777 |
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Fax No.: |
91-2662-242326/
24237788 |
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E-Mail : |
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Website : |
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Plant
Locations : |
Power Systems
Ř Kanjur, Bhandup, Mumbai – 400 042,
Maharashtra, India. o
Tel. No.
91-22-25782451 o
Fax No.
91-22-25783271 / 25783216 o
E-Mail. : vmasson@tone.cgl.co.in Ř A/3 MIDC Area, Ambad, Nashik – 422 010,
Maharashtra, India. o
Tel. No.
91-253-2382 271 / 2382 275 o
Fax No.
91-253-2381 247 o
E-Mail. : contact@cglmail.com Ř D-2 MIDC, Waluj, Aurangabad – 431 136,
Maharashtra, India. o
Tel. No.
91-240-2554 662 /2 554 371 / 2554 372 / 2554 559 o
Fax No.
91-240-2554 697 o
E-Mail. : cglsg@bom4.vsnl.net.in Ř 209 Mumbai Pune Road, Pimpri, Pune – 411
018, Maharashtra, India. o
Tel. No.
91-20-27474925 o
Fax No.
91-20-27474972 o
E-Mail. : cgt2@mantraonline.com Ř T1+T2 MPAKVN Industrial Area, Malanpur
(Dist. Bhind), Madhya Pradesh-477 716, India. o
Tel. No.
91-7539-283502 / 3507 / 3470 o
Fax No.
91-7539-283585 o
E-Mail. : cgt2@mantraonline.com Ř Plot No. 29-32 New Industrial Area No. 1,
Mandideep – 462 046, Madhya Pradesh, India. o
Tel. No.
91-7480-233306 o
Fax No.
91-7480-233149 o
E-Mail. cglt-bpl@sancharnet.in Ř Plot No. 65, Phase 1, SIPCOT Industrial
Complex, Hosur - 635 126, Tamil Nadu, India. o
Telefax :
91-4344-2579633 o
Fax No. :
91-4344-2579622 o
E-Mail. : cgpolycrete@satyam.net.in Industrial Systems
Ř Kanjur, Bhandup, Mumbai – 400 042,
Maharashtra, India. o
Tel. No.
91-22-2578 2451 o
Fax No.
91-22-2578 3845 o
E-Mail. : imd@cgl.co.in Ř A/6-2, MIDC Industrial Area, Ahmednagar –
414 111, Maharashtra, India. o
Tel. No.
91-241-2777372 o
Fax No.
91-241-2777508 o
E-Mail. : sc.gupta@mail.cgl.co.in Ř B-110 MIDC Industrial Area, Ahmednagar –
414 111, Maharashtra, India. o
Tel. No.
91-241-2778521 o
Fax No.
91-241-2777491 o
E-Mail. : gupta.r.k@mail.cgl.co.in Ř Plot No. 4, Gate No. 627/2, Village
Kuruli, Near Chakan, Pune - 410 501, Maharashtra, India. o
Tel. No.
91-2135-254641/2 o
E-Mail. feeder@cgl.co.in Ř D-5 Industrial Area, MPAKVN, Mandideep –
462 046, Madhya Pradesh, India. o
Tel. No.
91-7480-233116 / 233118 o
Fax No.
91-7480-233119 o
E-Mail. : ak.raina@mail.cgl.co.in Ř 11-B, Industrial Area 1, Pithampur – 454
775, Dist. Dhar, Madhya Pradesh, India. o
Tel. No.
91-7292-253194 / 253258 o
Fax No.
91-7292-253211 o
E-Mail. : cglsrub@sancharnet.in Ř C 71-72, MIDC Industrial Area, Satpur,
Nashik – 422 007, Maharashtra, India. o
Tel. No. 91-253-2351067
/ 69 o
Fax No.
91-253-2351492 o
E-Mail. : vrkumar@satpur2.cgl.co.in Ř D-2-21, 22, 23, Tivim Industrial Estate,
Karaswada, Bardez, Goa - 403 526, India. o
Tel.
No. 91-832-2257639 / 409 o
Fax No.
91-832-2257207 o
E-Mail. : sagar.r.k.@mail.cgl.co.in Ř 196-198, Kundaim Industrial Estate,
Kundaim, Ponda, Goa - 403 110, India. o
Tel. No.
91-834-2395510 o
Fax No.
91-834-2395377 o
E-Mail.: cglfhpg@goatelecom.com Ř L. B. Shastri Marg, Bhandup, Mumbai - 400
078, Maharashtra, India. o
Tel. No. :
91-22-25783865 / 3581 / 83 o
Fax No. :
91-22-25782877 Ř Dr. E. Moses Road, Worli, Mumbai – 400
018, Maharashtra, India. o
Tel. No. :
91-22-24933913 / 916 o
Fax No.:
91-22-24951411 Consumer Products Ř Kanjur, Bhandup, Mumbai – 400 042,
Maharashtra, India. o
Tel. No.
91-22-2578 2451 o
Fax No.
91-22-2578 6046 Ř Dr. E. Moses Road, Worli, Mumbai – 400
018, Maharashtra, India. o
Tel. No.
91-22-24951983 / 24944376/ 24977652 o
Fax No.
91-22-24604707 / 4708 / 24973046 o
E-Mail. : vrm@cgl.co.in Ř Kural Village, Padra Taluka,
Padra-Jambusar Road, District Baroda, Gujarat, India. o
Tel. No. :
91-2662-242278 o
Fax No. :
91-2662-242326 o
E-Mail. : kvs@mail.cgl.co.in Ř 325-326, Kundaim Industrial Estate, Ponda,
Goa - 403 110, India. o
Tel. No. :
91-832-2395304 o
Fax No. :
91-832-2395305 Ř A-28, MIDC, Ahmednagar - 414 111,
Maharashtra, India. o
Tel. No.
91-241-2777155 o
Fax No.
91-241-277893 o
E-Mail. uhm@cgl.co.in Ř 214-A, Kundaim Industrial Estate, Kundaim,
Goa - 403 110, India. o
Tel. No.
91-832-2395246 / 206 / 304 o
Fax No.
91-832-2395305 o
E-Mail. rsk@mail.cgl.co.in Ř Plot No. 1, IDC Industrial Estate,
Bethora, Ponda, Goa 403 409, India. o
Tel. No.
91-832-2330005 / 2330742 o
Fax No.
91-832-2313155 o
E-Mail. rsk@mail.cgl.co.in Ř Village and Import Export Executive
Channo, Dist. Sangrur - 148 026, Punjab, India o
Tel. No.
91-16732-274543 o
Fax No.
91-16732-274542 Digital Group
Ř 10-A Jigani Industrial Estate, Jigani,
Anekal, Bangalore Rural – 562 106, Karnataka, India. o
Tel. No.
91-80-7825206/7 o
Fax No.
91-80-7825210 o
E-Mail. cgl.rcd@cromption.sril.in Ř 11A and 11C Industrial Area, Pithampur –
454 775, Dist. Dhar, Madhya Pradesh, India. o
Tel. No.
91-7292-253035 / 253071 o
Fax No.
91-7292-253213 o
E-Mail. hs_sekhon@yahoo.co.in International Division
Ř Jagruti, 2nd Floor, Kanjur Marg
(East), Mumbai - 400 042, Maharashtra, India o
Tel. No.
91-22-25782451-7/25776524 /6649/25776723/25784211-19 o
Fax No.
91-22-25774066 o
E-Mail. ashley@cgl.co.in Domestic Appliances Division
· 27, Rani Jhansi Road, New Delhi - 110 055, India Tel. No. 91-11-27516993 / 23632349 Fax No. 91-11-27514899 Engineering Projects Division
· Bombay Mutual Building, 4th Floor, 232, NSC Bose Road, PO Box No. 100, Chennai - 600 001, Tamil Nadu, India ·
Tel No.
91-44-25341941 ·
Fax No.
91-44-25341048 ·
E-Mail. cglepd@vsnl.com Ř 50, Chowringhee Road, Kolkata - 700 071,
West Bengal, India
Lighting Division
Ř Dr. E. Moses Road, Worli, Mumbai - 400
018, Maharashtra, India ·
Tel. No.
91-22-24604701 |
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Regional Sales
Office : |
Northern Region Church Road, PO
Box 173, Jaipur - 302 001, Rajasthan, India Tel. No.
91-141-2376919/2376307 Fax. No.
91-141-2365371 E-Mail. opsharma@mail.cgl.co.in 50, Mahavir Marg,
Jalandhar - 144 001, Punjab, India Tel. No.
91-181-2459467/2459478 Fax. No.
91-181-2226342 E-Mail. maniktala@mail.cgl.co.in Saran Chambers
II, 3rd Floor, 5 Park Road, Lucknow - 226 001, Uttar Pradesh,
India Tel. No.
91-522-2239443/2237007/8 Fax. No.
91-522-2237009 E-Mail. cgllko@sancharnet.in Vandana Building,
11, Tolstoy Marg, New Delhi - 110 001, India Tel. No.
91-11-23352151/23352161 Fax. No.
91-11-23324360 E-Mail. vknayyar@mail.cgl.co.in Rishyamook
Building, Block B, 2nd Floor, 85-A, Punchkuin Road, New Delhi -
110 001, India Tel. No.
91-11-23348236/41/23348425/25 Fax. No.
91-11-23734954 E-Mail. administratordelhi@cgl.co.in Eastern Region 50, Chowringhee
Road, Kolkata -700 071, West Bengal, India Tel. No.
91-33-22829681/85 Fax. No.
91-33-22829942/22824818 E-Mail. cglercal@cal.vsnl.net.in Janpath Tower, 3rd
Floor, Ashok Nagar, Unit II, Bhubaneswar - 751 009, Orissa, India Tel. No.
91-674-2533647/2531128 Fax. No.
91-674-2533521 E-Mail. yebbssd@dte.vsnl.net.in Western Region 909-916, Sarkar
II, Near Ellis Bridge, Ahmedabad - 380 006, Gujarat, India Tel. No.
91-79-6582780/6587238 Fax. No.
91-79-6586047 E-Mail. rcvatsa@mail.cgl.co.in Kanjur Marg
(East), Mumbai - 400 042, Maharashtra, India Tel. No.
91-22-25782451 Fax. No.
91-22-25794882 E-Mail. anr@wr.cgl.co.in 65A, Nhava House,
Maharashi Karve Road, Marine Lines, Mumbai - 400 002, Maharashtra, India Tel. No.
91-22-22083234/36/22014905 Fax. No.
91-22-22083244 103-B, Apollo
Trade Centre, 2B, Raigarh Kothi, Mumbai Agra Road, Indore - 452 001, Madhya
Pradesh, India Tel. No.
91-731-2498269/2498271/2498276 Fax. No.
91-731-2495667 E-Mail. sagarm@mail.cgl.co.in Surya Bhavan, 5th
Floor, Fergusson College Road, Pune - 411 005, Maharashtra, India Tel. No.
91-20-5534675-77 Fax. No.
91-20-5534684 E-Mail. siva@mail.cgl.co.in Southern Region Ground Floor,
Lakshmi Mansion, 4/02, 22nd Cross, 8th Main, III Block,
Jayanagar, Bangalore - 560 011, Karnataka, India Tel. No.
91-80-6533926 to 3928/6534170 and 73 Fax. No.
91-80-6534174 E-Mail. bukil@mail.cgl.co.in Satellite office - No. 658/664, Rajalakshmi Plaza, 100ft.
Road, Gandipuram, Coimbatore - 642 012, Tamil Nadu, India Tel. No.
91-422-2526453/2521829 Fax. No.
91-422-2525334 Cherupushpam
Building, 5th Floor, 300-6, Shanmugam Road, Ernakulam, Cochin -
682 031, Kerala, India Tel. No.
91-484-370860/3 Fax. No.
91-484-373738 E-Mail. anand.kumar.n@mail.cgl.co.in 3, Dr. M G R
Salai, (Kodambakkam High Road), Nungambakkam, Chennai - 600034, Tamil Nadu,
India Tel. No.
91-44-28257375 Fax. No.
91-44-28231973/1974 E-Mail. tahilyani.dd@mail.cgl.co.in Satellite office No. 84-B,
Mellakkall Main Road, Kochadai, Madurai - 625016, Tamil Nadu, India Tel. No.
91-452-2382711/382 Fax. No.
91-452-2382640 Minerva House, 4th
Floor, 94, Sarojini Devi Road, Secunderabad - 500 003, Andhra Pradesh, India Tel. No.
91-40-27847270/27847090 Fax. No.
91-40-27842921 E-Mail. bajwa@mail.cgl.co.in (Satellite
office) - G-3, Vijay Apartments, Moghulrajpuram, Near Madhu Kalyana Mandapam,
Vijayawada - 520010, Andhra Pradesh, India Tel. No.
91-866-2476783 Fax. No.
91-866-2473561 |
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Services
Centers : |
Northern Region 6/12, Kirti Nagar
Industrial Area, New Delhi - 110 015, India Tel. No.
91-11-25933524/25464968/25173139 Fax. No.
91-11-25173148 Church Road, PO
Box 173, Jaipur - 302001, Rajasthan, India Tel. No.
91-141-2376919/2376307 Fax. No.
91-141-2365371 E-Mail. opsharma@mail.cgl.co.in Village Khajurla,
Outside Jalandhar Octroi Post, Jalandhar - Phagwara Road, Jalandhar - 144
001, Punjab, India Tel. No.
91-181-2261009/2260387 E-Mail. maniktala@mail.cgl.co.in D-8, Transport
Nagar, Lucknow -226 012, Uttar Pradesh, India Tel. No.
91-522-2433132/2432345 E-Mail. kane@mail.cgl.co.in Eastern Region 21, RN Mukherjee
Road, Kolkata - 700 001, West Bengal, India Tel. No.
91-33-22489160/22488911 Fax. No.
91-33-22489737 E-Mail. akpaul@mail.cgl.co.in Janpath Tower
(Basement), Ashok Nagar, Unit II, Bhubaneswar - 751 009, Orissa, India Tel. No
91-674-2531592 Fax. No.
91-674-2533521 E-Mail. yebbssd@dte.vsnl.net.in Opposite Narmada
Apartment, Exhibition Road, Patna - 800 001, Bihar, India Tel. No.
91-612-2239405 Fax. No.
91-612-2212751 E-Mail. bera@mail.cgl.co.in Western Region Mathurdas Mills
Compound, Near ESIC Bhavan, NM Joshi Marg, Lower Parel, Mumbai - 400 013, Maharashtra,
India Tel. No.
91-22-24922572/24947950 Fax. No.
91-22-24931713 E-Mail. bssawant@wr.cgl.co.in Southern Region 34 Dr. MGR Salai
(Kodambakkam High Road) Nungambakkam High Road, Chennai - 600 034, Tamil
Nadu, India Tel. No.
91-44-28274610 Fax. No.
91-44-28258565 E-Mail. trevor.j.dsouza@mail.cgl.co.in No. 26, 2nd
Main Road, Trustpuram, Chennai - 600024, Tamil Nadu, India Tel. No
91-44-24724096 20, II Main Road,
New Timber Yard Layout, Mysore Road, Bangalore - 560926, Karnataka, India Tel. No.
91-80-6755723 E-Mail. bukil@mail.cgl.co.in No. 9C Jigani
Industrial Area, Jigani Anekal Taluk, Bangalore-560 926, Karnataka, India Tel. No.
91-80-7825203 Fax. No
91-80-7825205 E-Mail. rajpalp@vsnl.com 1st
Floor, 132, Industrial Area, Rasulpura, Secunderabad - 500 003, Andhra
Pradesh, India Tel. No.
91-40-27815938/26269001 E-Mail. bajwa@mail.cgl.co.in 35/772, South
Janata Road, Palarivattom, Cochin - 682 025, Kerala, India Tel. No.
91-484-2338102/2338856 E-Mail. anand.kumar.n@mail.cgl.co.in Sree Rajalakshmi
Plaza, 658, Dr. Rajendra Prasad Road, (100 Feet Road), Gandhipuram,
Coimbatore - 641 037, India Tel. No.
91-422-2496453 Telefax. No.
91-422-2495334 E-Mail. admincbt@mail.cgl.co.in |
DIRECTORS
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Name : |
Mr. Gautam Thapar
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Designation : |
Chairman |
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Name : |
Mr. S. M. Trehan |
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Designation : |
Managing Director
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Name : |
Mr. J. Shaw |
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Designation : |
Director |
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Name : |
Mr. K. Thapar |
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Designation : |
Director |
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Name : |
Mr. S. Crowther |
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Designation : |
Director |
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Name : |
Mr. D. C. Sanghi |
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Designation : |
Director |
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Name : |
Mr. L. M. Thapar |
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Designation : |
Director |
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Name : |
Mr. S Bisht |
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Designation : |
Director |
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Name : |
Mr. P. C. Gupta |
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Designation : |
Director |
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Name : |
Mr. R. Nirula |
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Designation : |
Director |
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Name : |
Mr. S. Labroo |
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Designation : |
Director |
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Name : |
Mr. S Bayman |
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Designation : |
Director |
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Name : |
Mr. Omkar Goswami
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Designation : |
Director |
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Name : |
Mr. Pudumjee |
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Designation : |
Director |
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Name : |
Mr. S P Talwar |
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Designation : |
Director |
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Name : |
Mr. V Von Massow |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. S. M. Trehan |
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Designation : |
Chief Executive
Officer |
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Name : |
Mr. B. R. Raju |
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Designation : |
Chief Financial
Officer |
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Name : |
Mr. W. Henriques |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.12.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of promoters and Promoter Group |
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1. Indian |
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Individuals / Hindu Undivided Family |
220715 |
0.06 |
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Bodies Corporate |
143440675 |
39.28 |
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Sub Total (A)
(1) |
143661390 |
39.34 |
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(B) Public
Shareholding |
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1. Institutions |
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Mutual Funds / UTI |
74842533 |
20.49 |
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Financial Institutions / Banks |
826415 |
0.22 |
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Insurance Companies |
12056089 |
3.30 |
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Foreign Institutional Investors |
59982645 |
16.42 |
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Sub Total (B)
(1) |
147707682 |
40.43 |
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2. Non
Institutions |
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Bodies Corporate |
14979371 |
4.10 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
26249380 |
7.19 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
8208385 |
2.25 |
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Non Residents |
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NRI Rep |
676262 |
0.19 |
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NRI Non – Rept |
489318 |
0.13 |
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OCB |
40350 |
0.01 |
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Foreign Bodies |
23129963 |
6.33 |
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Foreign National |
1550 |
0.004 |
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Sub Total (B)
(2) |
73774579 |
20.20 |
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(B) = (B) (1) +
(B) (2) |
221482261 |
60.63 |
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Total (A) + (B) |
365143651 |
100.00 |
As on 31.03.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
143661390 |
39.19 |
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Indian Institutional Investors |
12405014 |
3.38 |
|
Bodies Corporate |
16471110 |
4.49 |
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Foreign Institutional Investors |
57890107 |
15.79 |
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NRIs, OCBs, GDRs |
25611061 |
6.99 |
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Mutual Funds |
76626261 |
20.90 |
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General Public |
33798609 |
9.23 |
|
Directors |
103040 |
0.03 |
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Total |
366566592 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing and
Marketing of transformers, switchgears, turn-key projects, capacitors,
electric motors - fractional horse power motors, LT motors, alternators, HT
motors, DC machines, rail transportation, fans, luminaries, light sources,
telephone instruments, telecommunication switching, transmission and access
products, EPABX systems and agricultural and domestic pumps, etc. |
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Products : |
The company's
products and services are as under : Power Systems
Transformers : Ř Power Transformers Ř Industrial Transformers Ř Amorphous Core Transformers Ř Dry Type Transformers Ř Freight Loco Transformers Ř Furnace Transformers Ř Rectifier Transformers Ř Reactors HT Switchgear : Ř Bulk Oil, Vacuum and SF6 Circuit Breakers
up to 400 kv Ř Vacuum Interrupters (Bottles) Ř Instrument Transformers up to 400 kv Ř On-load tap Changers Ř Condenser Bushings Ř Lightening Arresters Ř Vacuum Pressure Impregnation Plants Capacitors : Ř LT and HT Capacitors (MPP and APP) Ř APFC Panels Ř MFD Condensers Ř Reactive Power Control Panels (Wind
Generation) Ř Power Quality Solutions Engineering Projects : Ř Systems Engineering Ř Projects on turnkey basis from concept to
commissioning: Power Generation, Transmission and Distribution 400 Volts to
400 kv Ř Industrial Electrification for Process
Industries, Power, Cement, Paper Metallurgy, Steel Petrochemicals, etc Ř Control and Automation Projects for
Substations Ř Railway Traction Substations Ř Railway Overhead Electrification's Industrial Systems
Motors: Ř AC Motors from 7 Watts to 10 Megawatts -
All types including Flame Proof and Increased Safety Ř DC Motors Ř Alternators / AC Generators Ř Stampings and Laminations, Tools Rail Transportation: Ř Traction Motors Ř Signalling Relays Ř Point Machines Ř Axle Counters Ř Solid State Signalling Systems Ř Electric's for Locus, DEMUs, EMUs Consumer Products
Lighting : Ř Fluorescent Tube Lights, Compact
Fluorescent Lamps Ř Incandescent Lamps Ř Reflux Lamps, Reflux Systems Ř High Pressure Mercury/Sodium Vapour Lamps Ř Metal Halide Lamps Ř Mirror Optics Ř Streetlights, Floodlights Ř Luminaries - Domestic, Commercial,
Industrial Ř High Masts Ř Lighting Software Ř Accessories Fans : Ř Fans: Ceiling, Table, Wall Mounting and
Pedestal Ř Kitchen Fresh Air Fans Ř Cooler Kits, Heat Convertors Ř Industrial Fans: Exhaust Fan, Air
Circulator and Mancooler Pumps : Ř Domestic Ř Agriculture Ř Submersible Ř Jet Ř Industrial International : Ř Exports of all Crompton Greaves
manufactured and factored products directly and via global EPCs operating
from India. Digital
Informatics : Ř Software Development and Networking Ř Value added Services and System
Integration Consultancy Services Telecommunication : Ř Public
Switching Products -CDOT - 256 Port Rural Automatic Exchanges
(RAX) -CDOT - Single Base Module (SBM), Rural
Automatic Exchanges -CDOT - Max - L Exchanges up to
10, 000 Lines -Max - XL Exchanges up to 40000
Lines Ř Private
Switching Products Digital EPABX
Systems - CORAL range up to 6000 Ports (ESI Telecom, Israel) Maintenance
support for OKL EPABX systems Ř Transmission
Products -2/8 Mbps OLTE and MUX Equipments, -2/34
Optimum Equipments, -2/140 Optimum Equipments, STM - 1 Equipments, -CDOT: TDMA-PMP Digital Multi Access, Rural Radio (Digital MARR) Equipments Ř Access
Products -CorDECT Wireless Local Loop (WLL)
Equipments, - High Bit Digital Subscriber
Line (HDSL) Equipments Ř Terminal
Products -Electronic Push Button
Telephones, - Fax Machines, - Modems (Data/Voice) Generic Names of Principal
Products/Services of the company are as under :
|
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Exports to : |
v
Japan v
Korea v
USA v
Malaysia v
U.K. v
Vietnam |
PRODUCTION STATUS
As on 31.03.2008
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Transformers,
Reactors and Accessories thereof |
KVA Nos. |
9000000 19687 |
24670000 27000 |
22764760 24581 |
|
Switchgear,
Controls Equipments and Accessories thereof |
Nos. |
322000 |
588600 |
457421 |
|
1.
Motors,
Alternators and Pumps |
HP Nos. |
1439250 198835 |
6264900 570436 |
5267321 336437 |
|
2.
Electrical
Steel Stamping and Laminates |
MT |
7500 |
22000 |
15796 |
|
Electric Fans,
Ventilation and Pollution Control Systems |
Nos. |
1000000 |
4030300 |
2292157 |
|
Lighting-Electric
Lamps |
M. Pcs. |
19.46 |
103 |
77 |
|
Communications,
Computer Systems, Software and Accessories |
Lines Terminals |
120000 |
-- -- |
-- -- |
|
Other Items |
Nos |
2400250 |
5050 |
2946 |
GENERAL
INFORMATION
|
Customers : |
Ř Hyundai Engineering, Korea Ř ABB, USA Ř Siemens Limited Ř Power Grid Corporation India Limited Ř State Electricity Board, Mumbai,
Maharashtra, India Ř Lohia Starlinger Limited Ř Kirloskar Bros. Limited Ř Larsen and Toubro Limited Ř Whirlpool India Limited Ř Sulzer Pumps (India) Limited Ř Boving Fouress Limited Ř Indian Railways Ř Municipal Corporation Ř Jindal Steel Ř Tata Companies Ř Bharat Heavy Electricals Limited Ř Alstom Power Ř Mather and Platt (India) Ř Life Insurance Corporation Ř Bharat Sanchar Nigam Limited Ř BSES Limited |
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|
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|
No. of
Employees : |
Around 6058 |
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|
|
|
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|
Bankers : |
v
ABN Amro
Bank NV v
Bank of
Baroda v
Bank of
India v
Bank of
Maharashtra v
Canara Bank v
Corporation
Bank v
ICICI Bank
Limited v
IDBI Bank
Limited v
Standard
Chartered Bank v
State Bank
of India v
Syndicate
Bank v
UCO Bank v
Union Bank
of India v
Vijaya
Bank v
Calyon Bank |
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|
Facilities: |
|
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|
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|
Banking Relations : |
Good |
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|
|
|
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|
Auditors : |
Sharp and Tannan Chartered
Accountants |
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|
|
|
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|
Solicitors : |
Crawford Bayley
and Company |
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|
Subsidiaries : |
·
CG Capital
and Investments Limited ·
CG Energy
Management Private Limited ·
CG-PPI
Adhesive Products Limited ·
CG
International B.V. ·
PT Pauwels
Trafo Asia ·
Pauwels
Americas Inc ·
Pauwels
Trafo Belgium N.V. ·
Pauwels
Canada Inc ·
Pauwels
Transformer Inc ·
Ganz Transelektro
Villamossagi Zrt ·
Microsol
(UK) Limited ·
Malanpur
Captive Power Limited ·
CTR
Manufacturing Industries Limited ·
CG Motors
Private Limited |
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|
|
|
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|
Associates : |
·
CG Newage
Electrical Limited ·
CG Lucy
Switchgear Limited ·
Paxonet
Communications Inc. U.S.A. ·
Hitachi CG
Motor Engineering Private Limited ·
Brook
Crompton Greaves Limited ·
Power
Equipment Limited, Dubai ·
Radiant
Electronics Limited ·
CG Hometech
Limited ·
CG Comnet
Limited ·
CG Global
Limited ·
CG Glass
Limited ·
Ensave
Devices Private Limited ·
CG Igarashi
Motors Limited ·
International
Components India Limited ·
CG
Schlumberger Electricity Management Limited ·
CG Smith
Software Private Limited ·
CG Maersk
Information Technologies Private Limited ·
Karamchand
Thapar (Africa) Limited, Mauritius · CG International B.V. · Pauwels International N.V. · Pauwels Contracting Inc · Pauwels Trafo Ireland Limited · PT Pauwels Trafo Asia · Pauwels France S.A. · Pauwels Americas Inc. · Pauwels Trafo Service N.V. · CG Hungary Kft. · Ganz Transelektro Villamossagi Zrt · Transverticum Kft · Malanpur Captive Power Limited |
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|
Memberships : |
Confederation of
Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
625000000 |
Equity Shares |
Rs. 2/- each |
Rs. 1250.000 millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
366608892 |
Equity Shares |
Rs. 2/- each
|
Rs. 733.220 millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
366566592 |
Equity Shares |
Rs. 2/- each
|
Rs. 733.140 millions |
|
42300 |
Add : - Equity Shares (Forfeited Shares ) |
Rs. 2/- each |
Rs. 0.030
million |
|
|
|
Total |
Rs. 733.170 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
733.170 |
733.170 |
523.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8574.300 |
6009.800 |
4840.070 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9307.470 |
6742.970 |
5363.770 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
623.680 |
2413.470 |
2171.150 |
|
|
2] Unsecured Loans |
251.910 |
286.860 |
326.540 |
|
|
TOTAL BORROWING |
875.590 |
2700.330 |
2497.690 |
|
|
DEFERRED TAX LIABILITIES |
522.500 |
375.800 |
111.000 |
|
|
|
|
|
|
|
|
TOTAL |
10705.560 |
9819.100 |
7972.460 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4927.080 |
3899.990 |
3497.14 |
|
|
Capital work-in-progress |
225.880 |
433.770 |
140.760 |
|
|
|
|
|
|
|
|
INVESTMENT |
1943.290 |
1351.090 |
1021.310 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2629.510
|
2470.100
|
1918.090 |
|
|
Sundry Debtors |
9562.200
|
8038.900
|
6596.410 |
|
|
Cash & Bank Balances |
1576.500
|
1735.770
|
1251.310 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
2794.030
|
2363.680
|
1571.060 |
|
Total
Current Assets |
16562.240
|
14608.450
|
11336.870 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
10411.960
|
8893.830
|
7362.590 |
|
|
Provisions |
2540.970
|
1580.370
|
661.030 |
|
Total
Current Liabilities |
12952.930
|
10474.200
|
8023.620 |
|
|
Net Current Assets |
3609.310
|
4134.250
|
3313.250 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10705.560 |
9819.100 |
7972.460 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
38757.560 |
33676.040 |
25205.930 |
|
|
Other Income |
696.310 |
348.750 |
327.270 |
|
|
Total Income |
39453.870 |
34024.790 |
25533.200 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
4856.520 |
3070.030 |
1947.980 |
|
|
Provision for Taxation |
1717.300 |
1146.300 |
317.500 |
|
|
Profit/(Loss) After Tax |
3139.220 |
1923.730 |
1630.480 |
|
|
|
|
|
|
|
|
Exports |
|
|
|
|
|
Export of goods (on F.O.B. basis) |
7564.470 |
6156.500 |
4744.340 |
|
|
Service Income |
7.310 |
5.660 |
0.000 |
|
|
Others |
0.650 |
0.000 |
0.000 |
|
|
Total |
7572.430 |
6162.160 |
4744.340 |
|
|
|
|
|
|
|
|
Imports |
|
|
|
|
|
Raw Materials |
2834.080 |
2875.660 |
1818.820 |
|
|
Spare Parts |
85.180 |
19.760 |
0.000 |
|
|
Capital Goods |
113.640 |
241.560 |
0.000 |
|
|
Trading Goods |
338.300 |
253.230 |
0.000 |
|
|
Total |
3371.200 |
3390.210 |
1818.820 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
28000.070 |
25284.140 |
18238.430 |
|
|
Administrative Expenses |
3909.720 |
3230.990 |
2966.700 |
|
|
Salaries, Wages, Bonus, etc. |
2009.860 |
1742.570 |
1674.650 |
|
|
Interest |
271.140 |
303.500 |
263.670 |
|
|
Depreciation & Amortization |
406.560 |
393.560 |
441.770 |
|
Total Expenditure |
34597.350 |
30954.760 |
23585.220 |
|
KEY RATIOS
|
Particulars |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.23 |
0.44 |
0.62 |
|
Long Term Debt-Equity Ratio |
0.15 |
0.31 |
0.45 |
|
Current Ratio |
1.22 |
1.26 |
1.29 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.48 |
4.21 |
3.40 |
|
Inventory |
17.05 |
16.64 |
14.96 |
|
Debtors |
4.94 |
4.99 |
4.60 |
|
Interest Cover Ratio |
16.41 |
10.61 |
7.83 |
|
Operating Profit Margin(%) |
12.95 |
10.41 |
9.69 |
|
Profit Before Interest And Tax Margin(%) |
11.89 |
9.28 |
8.09 |
|
Cash Profit Margin(%) |
8.28 |
6.40 |
7.51 |
|
Adjusted Net Profit Margin(%) |
7.22 |
5.27 |
5.91 |
|
Return On Capital Employed(%) |
53.49 |
39.84 |
30.18 |
|
Return On Net Worth(%) |
39.85 |
32.59 |
35.67 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 28th April 1937 at Mumbai in
Maharashtra as a Private Limited Company having Company Registration Number
2641.
Subject was incorporated as a private limited liability company as
Crompton Parkinson (Works), it later changed to Greaves Cotton and Crompton
Parkinson in July, 1937 and subsequently after amalgamation in January, 1966,
changed its name to Crompton Greaves in August, 1966.
Subject was incorporated in the year 1937 as a 100% subsidiary of
Crompton Parkinson Limited, UK (CPL), under the name of Parkinson Works Limited
(PWL). In 1948, the L M Thapar Group company, Greaves Cotton and Company
Limited acquired 26% interest in the company, which was later increased to 50%
in 1950.
In 1966, a joint venture company (between GCCL and CPL), Greaves Cotton
and Crompton Parkinsons Limited, the sales agents of the erstwhile PWL, was
amalgamated with the PWL. The company
was renamed as Crompton Greaves Limited.
The company came out with an IPO in 1967. From a single located company manufacturing ceiling fans and AC
industrial motors, subject has grown into a multinational, multi product
company. Since 1978, CGL entered into
various technical collaboration agreements with renowned companies from USA,
UK, Europe and Japan. While many of these companies are being amalgamated with
the company, it is also divesting stake in many a company for realizing cash.
The company has collaboration with Westinghouse Electric Corporation,
USA, for 400-kv transformers, Emile Haefely, Switzerland, for bushings, Hunt
and Weber, Germany for air-circuit breakers; Mitsubishi, Japan for gas-circuit
breakers; etc. Also, collaboration has been entered into for its telecom
division with Graphite and SDI, USA, for fax mail. The company has ten
full-fledged ultra-modern facilities/laboratories for updating technology,
adapting application and helping production. The company has submitted its bid
to the DoT for provision of cellular services in seven circles in association
with Millicone, Luxembourg. Crompton
Greaves Corporate Finance and Administration has been awarded ISO 9002
certification by KPMG quality registrar, USA.
During 1996-97, Indocom Industries and Lumino Lamps were amalgamated
with the company and GDR were issued for US $ 50 millions, which was fully
subscribed at Rs. 265/- per GDR. The Kersons Manufacturing Company of India and
Goa Electrical and Fans were also amalgamated with the company during the
year1997-98, during 1999-2000 CG Polycrete and Punjab Power Generation Machines
were amalgamated with the company and they ceased to be the company's
subsidiaries.
In September, 2000 the company disinvested its shareholding in Skycell
Communications for Rs. 1240 millions and recently, it completed the transaction
for sale of its low tension control gear unit in Nasik for a consideration of
Rs.760 millions to a French multinational, Schneider Electric, thereby making a
profit of Rs. 300 millions. The company has disinvested its shareholding in CG
Glass Limited, CG Elin Power Systems Limited.
During the year 2002 Ensave Devices Private Limited and LEC India
Software Centre Private Limited have been amalgamated with CG Maersk
Information Technology Private Limited. The company has suspended its
Capacitors Division at Pune, Informatics Division at Bangalore and Industrial
Electronics Division at Nasik.
Biodata
The company is a BM Thapar Group Company, incorporated in Apr.'37 as a
private limited company as Crompton Parkinson (Works), it later changed to
Greaves Cotton and Crompton Parkinson in Jun.'37 and subsequently after
amalgamation in Jan.'66, changed its name to Crompton Greaves in Aug.'66.
It is mainly concentrating in Power Systems, Industrial Systems and Consumer
Products and Digital business. The company is mainly engaged in the
manufacture, distribution and sale of electrical and electronic equipment/
systems. The company's products include Transformers, Switchgears, Motors,
Alternators, Fans, Lighting, Pumps, Electrical Steel Stamping and Laminates,
Telecom Business Solutions and Computer Systems and Software etc.
It is the market leader in number of products in the Electrical Engineering
Sector. The company is the market leader in the Transformers Business with a
market share of 18%. The company's Stampings Division and Fan Business is a
market leader with 23% market share and 21% market shares respectively. The
company enjoys market leadership for AC Motors and the second position in AC
Generators and DC Motors.
Its manufacturing base covers in 22 locations across five states (Goa, Gujarat,
Karnataka, Maharashtra and Madhya Pradesh) in India. The Company is also having
Engineering Project Division in Chennai and this was relocated to Gurgaon
during 2004-05. The subsidiaries of CGL are CG Capital and Investments Limited,
CG-PPi Adhesive Products Limited and CG Motors Private Limited it exports its
products to 60 countries worldwide.
The company designs and manufactures the widest range of Power and Distribution
Transformers and Reactors from 160 kVA to 415 kVA, 500kV Class to fulfill the
specific demands of the Power and Industrial Sector and the Railways. Further
the division has capability to manufacture transformers from 400 kVA to 900000
kVA (in a bank) 3.3 kVA to 500 KVA class. The company's LT Motors division is
the first in India to develop 110-to 160 kVA aluminum body Alternators. Further
the company has developed Motors and Alternators for the modern 4000 HP Broad
Gauge Diesel Electric Locomotives and also commercialized 630 frames.
The Company is having Joint Venture agreement with Brook Crompton Greaves
Limited, CG Lucy Switchgear Limited and Hitachi CG Motor Engineering Private
Limited During Sep'04, the company has acquired the entire holding of 816000
shares of Rs.10 each in Hitachi CG Motor Engineering Private Limited (HCME)
which was earlier held by Hitachi Limited and consequently HCME become the
subsidiary of Crompton Greaves Limited
The company has collaboration with Westinghouse Electric Corporation, US, for
400-kv transformers; Emile Haefely, Switzerland, for bushings; Hundt and Weber,
Germany for air-circuit breakers; Mitsubishi, Japan, for gas-circuit breakers;
etc. Also, collaborations have been entered into for its telecom division with
Graphnet and SDI, US, for fax mail.
Indocom Industries and Lumino Lamps were amalgamated with the company during
1996-97. The Kersons Manufacturing Company of India and Goa Electrical and Fans
were also amalgamated with the company during the year 1997-98. During 99-00,
CG Polycrete and Punjab Power Generation Machines were amalgamated with the
company and they ceased to be the company's subsidiaries. During 2002 Ensave
Devices Private Limited and LEC India Software Centre Private Limited has been
amalgamated with CG Maersk Information Technology Private Limited
During May 2005 the company has completed the acquisition of the Belgium-based
Pauwels Group which is having its manufacturing facilities in Belgium, Ireland,
Canada, USA and Indonesia. Pauwels transformer range is upto 500 Kv as against
400 kV for the company. This acquisition was done under the name of a company
CG International BV that was incorporated in April 2005, in Amsterdam,
Netherlands.
In Sep. 2000, the company disinvested its shareholding in Skycell
Communications for a consideration of Rs 760 millions to a French
multinational, Schneider Electric, thereby making a profit of Rs 300 millions
The Company has disinvested its shareholding in CG Glass Limited, CG Elin Power
Systems Limited During 2002 the company has suspended its Capacitors Division
at Pune, Informatics Division at Bangalore and Industrial Electronics Division
at Nasik.
During 2004-05, CG Capital and Investments Limited, which is a 100% subsidiary
of the Company, divested its 82.06% shareholding consisting of 228098 equity
shares of Rs.100/- each in one its subsidiaries, CTR Manufacturing Industries
Limited Consequently, CG-PPI Adhesive Products Limited is the only subsidiary
of CG Capital and Investments Limited
During 2004-05 the company's LT Motors Division has commissioned an EOU
facility to manufacture AC Motors from frame 62 to 300, which will increase
capacity by a further 60000 Motors per annum. Further the Stampings Divisions
has taken a major step in capacity expansion, cost reduction and better
competitiveness by setting up an independent, 5000 MT per annum unit at
Ahmednagar. The Fans Divisions has taken steps to set up an additional facility
for manufactures of fans at Baddi in Himachal Pradesh.
MANAGEMENT DISCUSSION
AND ANALYSIS
2006-07 was a year in which Crompton Greaves Limited (`Crompton Greaves' or `the Company') took major strides in its journey of consolidation, integration and eminence as a world-class player in all its businesses.
As Mentioned In last year's Annual Report, on 13 May 2005, subject acquired the
Belgium-based Pauwels Group, a company internationally known for its
transformer manufacturing and service capabilities. Pauwels has manufacturing
facilities in Belgium, Ireland, Canada, USA and Indonesia with a global sales
and marketing network. Its power and distribution transformer products complement
those of Crompton Greaves; and together, the two entities effectively cover all
key global geographies.
Within a very short time of the acquisition, several teams from Crompton
Greaves and Pauwels have jointly worked on many initiatives to best utilise
their technologies, manufacturing skills and marketing capabilities to drive
more business, achieve greater efficiencies and earn higher profits as an
integrated Power Solutions entity.
In its quest for becoming an end-to-end full solutions provider in the power
transmission and distribution business, The company has been continuously
scanning the market for technologies and manufacturing capabilities that can
add to the width and depth of its offerings. This is what led to the
acquisition of Ganz Transelektro Villamossagi Zrt. and its associate company,
Transverticum Kft. in Hungary in 2006-07 for an enterprise value of
approximately Euro 35 million.
Ganz Transelektro (or `Ganz') has 125 years of experience in the production of
high voltage switchgear, power transformers, and in the turnkey implementation
of various power transmission and distribution projects including substations.
The company also has considerable experience in retrofitting and maintenance of
power plants, substations and electrical systems. In addition, it designs and
manufactures asynchronous and traction motors - which complement Crompton
Greaves' High Tension (HT) motors business. Naturally, Ganz was a very good fit
with Crompton Greaves and Pauwels. Accordingly, the acquisition was formalised
on 17 October 2006.
This acquisition, and the process of creating an integrated `CG Power' group -
comprising the transformer, switchgear and engineering projects businesses of
Crompton Greaves (India), and the power product and solution portfolios of
Pauwels and Ganz - has not only widened the Company's suite of products and
services but also improved its competitiveness and speed of response to global
opportunities. The unified presence of `CG Power' as an integrated customer servicing
entity offering products, systems, automation and services has become a
powerful and recognised force in the global transmission and distribution (T
and D) arena. This business now caters to all global markets as a `single point
of reference' for its diversified portfolio of products and solutions - and
thus leverages many synergies to generate deeper customer interface, and
greater shareholder value.
In the end of May 2007, subject concluded an agreement to purchase the shares
of Microsol Holdings Limited (`Microsol' or `MHL') for an enterprise value of
Euro 10.5 million. Headquartered in Ireland, Microsol is engaged in providing
automated solutions for medium voltage and high voltage substations - for new
units as well as for retrofitting existing substations. MHL has a significant
business presence in the UK and the USA; and its acquisition will reinforce CG
Power's ability to design, build and service world-class substations with
state-of-the-art automation. It is yet another example of the Company acquiring
to go up the value chain and become an end-to-end full solutions provider in
power transmission and distribution. The financial and operational benefits of
the Microsol acquisition will come into play in 2007-08.
The acquisition of Pauwels and Ganz has attracted considerable attention from
investors, analysts and the financial press. No doubt, there have been many
positive developments on the CG Power front. Equally, the Company has performed
extremely well in its other areas of business. Both the Industrial Systems and
Consumer Products businesses of the company have not only successfully set up
new capacities and introduced novel products, but also significantly grown
revenues and profits.
Last year's Annual Report discussed the three phases of subject'
transformational journey since 2000-01. These were: (i) turning around the
Company's fortunes through operational excellence, (ii) leveraging the gains
from operational excellence to generate significantly greater all-round growth
in revenues and profits, and (iii) building on International acquisitions to
achieve global leadership.
Today, the company is clearly in its third phase. It involves getting the best
value out of all its assets across the world, creating a global leadership platform
in each of its businesses, and searching for acquisitions that strengthen and
enlarge the Company's product, services and solutions portfolio.
To appreciate how Crompton Greaves has moved on to the third phase, it is
useful to look at its consolidated financial performance in 2006-07.
The Company's goal remains the same as last year: to be a global leader in the
power transmission and distribution business; to lead across most of
Asia-Pacific in motors and drives; and to be the South-Asian leader in consumer
electrical products and appliances.
Consolidated
Financial Highlights for 2006-07
Gross Sales and Income from Services grew over 36% to Rs. 59340.000 millions in 2006-07, or US$ 1.37 billion. This translates to a compounded annual growth rate (CAGR) of over 65% over the last three years.
CG Power i.e. the transformer, switchgear and engineering projects businesses
of Crompton Greaves (India), Pauwels and Ganz, has contributed Rs. 40313.000
millions in 2006-07 or US$ 927 million - growing revenues by more than 43% over
the previous year.
Gross Revenue from the Industrial Systems Business grew by 31% in 2006-07 to Rs.8971 million, or US$ 206 million.
Gross Revenue from the Consumer Products Business increased by over 22% in
2006-07 to Rs.9940 million, or US$ 229 million.
Operating EBIDTA (operating earnings before interest, depreciation, taxation
and amortisation) for Crompton Greaves grew by almost 49% to over Rs.4827
million, or US$ 111 million. Including non-operating income, EBIDTA increased
by 51% to over Rs.5880 million, or US$ 135 million.
Profit Before Tax (PBT) grew by almost 57% to Rs. 4360.000 millions in 2006-07,
or US$ 100 million.
Profit After Tax (PAT) net of minority interests and share of associate
companies stood at Rs. 2817.000 millions, or US$ 65 million.
ROCE the consolidated return on capital employed at the end of the year was
25.9% in 2006-07.
RONW Consolidated return on net worth was 34.6%.
CONSOLIDATED EARNINGS PER SHARE
(EPS) on fully diluted basis rose from Rs. 6.400 millions in 2005-06 to Rs. 7.700 millions in 2006-07. Cash EPS increased from Rs. 8.800 millions to Rs. 11.200 millions over the same period.
Power Systems includes the transformer, switchgear and engineering projects businesses of Crompton Greaves in India, all of Pauwels and the power business of Ganz. It involves the manufacture of power and distribution transformers, switchgear, lightning arrestors, circuit breakers, substation equipment, and design, servicing, power solutions and execution of turnkey T and D and substation projects. Its facilities are located in different parts of India, Belgium, Ireland, Canada, the USA, Indonesia and Hungary.
Industrial
Systems consists of HT and LT motors, alternators, drives, stampings, railway
transportation and signalling equipment. The facilities are spread across India
and Hungary.
Consumer
Products is in the business of fans, light sources and luminaires, pumps and
household electrical appliances such as geysers, mixers, grinders, toasters and
lanterns, with plants based in different locations in India. Chart A gives the
break-up of the three major businesses on a consolidated basis.
Performance Of The
Indian Power Systems Business
CG Power's Indian facilities are located at Kanjur Marg (Mumbai), Malanpur and Mandideep (both in Madhya Pradesh), Nasik and Aurangabad (both in Maharashtra). In addition, there is the Engineering Projects Division at Gurgaon (Haryana). The Company's Power Systems business operating out of India has performed extremely well.
Its
return on year-end capital employed stood at 44.2%, which is possibly higher
than any other T and D operation in the world. And its UEOB has grown by 42% to
Rs.17388.000 millions.
There
have been several key developments in the Power Systems business in India - all
of which position it for even better performance in the future.
Widening
The Product Portfolio
At its facility in Kanjur Marg, Crompton Greaves designed,
developed and manufactured the first 500 kV auto transformer in India, which
was shipped to Malaysia. This signalled the Company's entry into a niche,
technologically sophisticated, high value added market. It also developed a 765
kV transformer at Mandideep. Using Pauwels technology, a prototype of the first
990 kVA transformer was successfully tested, and delivered to a major client -
who has subsequently placed repeat orders. The Company's Switchgear Division at
Ambad (Nasik, Maharashtra) developed India's first 420kV Inductive Voltage
Transformer (IVT). With this, Crompton Greaves now has the complete range of
IVTs. It has also developed a new range of 420 kV Current Transformers (CT) up
to 3000 amperes. The division is also testing resin impregnated paper for
bushings, which will improve efficiencies and reduce overall product costs.
These product innovations have not only helped Crompton Greaves to bag
significantly large orders both in India and overseas, but will also play a
role in deepening and broadening its global market penetration over the next
few years.
Awards
The Company's switchgear complex at Ambad won the Frost and Sullivan India Manufacturing Excellence (IMEA) Gold Award for 2006, after having won the Silver in 2005. And the division at Aurangabad, after having achieved 16 consecutive quarters of growth and the highest number of patents and design registrations within Crompton Greaves, again won the Frost and Sullivan Gold Award in 2006 - as it did in 2005.
Since
Pauwels was acquired on 13 May 2005 and the FY 2006 numbers are based on the
performance of 10.5 months, the growth rates of gross sales and PBIT have been
calculated by annualising the numbers for 2005-06. The growth in capital
employed in FY 2007 is largely on account of the Ganz acquisition.
The
growth in capital employed in FY 2007 is largely on account of the Ganz
acquisition. Growing at over 27% in 2006-07, the Pauwels and Ganz operations
have added Rs. 23322.000 millions to the top-line of Crompton Greaves as a
consolidated entity. And with almost 56% increase in UEOB, there are significant
growth prospects for the future.
There
is improvement in profits. PBIT has grown by over 58% to Rs. 1493.000 millions
in 2006-07. With the integration of these operations proceeding on schedule,
the Company expects significant increases in revenues, PBIT, profitability and
return on operating capital in the years ahead.
Industrial
Systems
Crompton Greaves' Industrial Systems business consists of motors (low tension, LT, and high tension, HT), alternators and drives, railway transportation and signalling equipment, stampings and fractional horse power (FHP) motors. Its facilities are located at Mandideep and Pithampur (both in Madhya Pradesh), Kanjur Marg and Ahmednagar (both in Maharashtra), Tivim and Kundaim (both in Goa) and, most recently, at Tapioszele (near Budapest, Hungary).
With UEOB increasing by 42% to over Rs. 34050.000 millions, the Industrial Systems business is poised for a period of attractive double-digit growth.
In 2006-07, the HT motors division succeeded in extending the 11 kV range of HT
motors to 1,750 kW. It also obtained and executed several new orders for
refineries and cement plants. The division's facility at Mandideep was
significantly enhanced by a new machine shop with computerised equipment, and
additions to the testing bays, which can now test up to 5 MW HT machines.
A new 450 mm frame has been developed for industrial duty DC motors, especially
for steel mills and the sugar industry. A new traction motor, C1001 TM, was
developed for diesel electric locomotives. The division also received an order
for traction electrics from Indian Railways for its Diesel Electrical Multiple
Units (DEMU).
The low tension (LT) motors division successfully focused on obtaining
project orders from large steel and cement plants. Four new models were
introduced during the year including the 400 frame, SPDP bar-wound slip-ring
motor and the new FLP motor in the 160/180/200 frame. The division also
introduced AC drives during the year. Ranging from 0.25 kW to 630 kW, these
drives address a wide range of industry applications, and should be a future
growth engine for this business.
Thanks to volume growth of higher value added products, the stampings division
at Kanjur Marg also showed impressive growth in its top-line and PBIT. The
second stampings plant set up at Ahmednagar with a capacity of 10,000 MTPA, is
now on-stream, and is further contributing to the growth of this division. The
stampings business has also developed a number of new products - both for
in-house consumption as well as for new applications in the wind and
hydroelectric power areas.
Consumer
Products
Crompton Greaves' Consumer Products SBU is in the business of fans, lighting (light sources and luminaires), household electrical appliances and pumps, and sells its products largely within India. With facilities at Bethora and Kundaim (Goa), Baddi (Himachal Pradesh), Kanjur Marg and Ahmednagar (Maharashtra) and Baroda (Gujarat), it is the second largest business unit of the Company - accounting for almost 27% of standalone revenues of 2006-07, and 17% of consolidated global revenues.
Gross sales of the Consumer Products division grew by almost 22% to Rs. 9940.000 millions in 2006-07. This is a significantly higher growth rate than that of the consumer electrical industry in India. Profits have done just as well. PBIT increased by almost 23% to Rs. 955 million. At 9.6% in 2006-07, the business' PBIT to sales ratio is not only higher than what it was in the previous year, but also the best among the organised industry in India. Moreover, it is the Company's leading cash generator. With a very lean capital base, it earns an excellent return on operating capital: 123% in 2006-07, despite a sizeable increase in capital employed.
The Company's sales of fans and appliances continued to grow faster than the
market. During 2006-07, the company introduced 24 new designs in fans and 14
new products in appliances. Its plant at Baddi now operates at almost full
capacity, and contributes a large share of the SBU's fans and appliances
business. Given the demand for Crompton fans, the capacity at Baddi will be
significantly increased in 2007-08. Sales of Crompton Greaves' mixers, grinders
and electric irons have shown excellent volume growth, and, in the course of
the year, the Company introduced different models under three new product
categories: wet grinders, toasters and emergency lanterns.
The Fans division won the Frost and Sullivan (India) Manufacturing Excellence
Gold award for 2006 - after having won the Silver a year earlier.
Crompton Greaves' pumps enjoy strong brand equity in the domestic market.
This,
in addition to improvements in plant-level efficiency, has enabled pumps to
grow the business at 21% over last year's sales. The Company continues to be
the market leader for domestic pumps within the organised sector.
The Company's Lighting division manufactures light sources (bulbs, fluorescent
tube lights or FTL, sodium vapour lamps, compact fluorescent lamps or CFL) and
sells luminaires (fittings for the light sources). In 2006-07, with a sales
growth of 22%, the division increased its market share. It also made concerted
efforts at growing the export market, especially to Sri Lanka, through a tie-up
with one of Sri Lanka's leading brands of light sources.
In order to cater to increasing demand, Crompton Greaves has set up a captive
glass shell manufacturing unit and a new line for FTL at Baroda.
This
new line is automated, and is expected to significantly improve productivity.
The glass plant has started to operate at over 80% capacity utilisation within
three months of production.
Corporate Social
Responsibility
Corporate Social Responsibility (CSR) initiatives define responsible and evolved business organisations. Subject believes that in addition to maximising long term shareholder value, the Company must consistently make a positive impact not only on the lives of its employees and immediate stakeholders, but also over a wider social sphere.
Towards the end of last year, the Company defined and circulated its `Statement
of Intent' for CSR, which expresses its intention to achieve commercial success
in a socially responsible and balanced manner - honouring ethical values and
improving the quality of life of its employees, their families and the communities
in which it operates, as well as the environment.
The Statement of Intent has three dimensions:
In The Workplace
The Company has a declared Health and Safety Policy based on which it conducts its business, as elaborated in the paragraph on `Environment, Health and Safety' in the Directors' Report. To further this cause, all factories and premises of Crompton Greaves have been declared as `No Smoking Zones'. The Company also encourages medical consultations for diagnosis of socially unacceptable ailments such as sexually transmitted diseases and HIV/AIDS, whilst ensuring total confidentiality together with employment protection.
In The Community
The Company strives to being a good corporate citizen by focusing on the communities that surround its facilities at various locations, and doing so by adopting need-based plans to improve the environment and quality of life. It supports projects by sponsoring identified community initiatives and providing them with necessary resources. Employees are actively encouraged to participate in these programmes.
In The Environment
International certifications such as ISO 14001 and OHSAS 18001 are actively pursued as a base threshold. All Units of Crompton Greaves have been so certified. Thus, the stage has been set to attain even higher environmental standards. Continuous energy savings, waste reduction, promoting reuse/recycling, minimising pollution and planting of trees are key pillars in this area.
2006-07 started with a three-fold focus: SIGMA, HIV/AIDS workplace programmes
and Unit-specific projects. A fourth area - support to the cause of affirmative
action - was added during the year. Given below are some details.
Sigma and Building Human
Capacities
SIGMA stands for Stimulating, Inspiration, Guidance and Mentorship Association - a pioneering movement to increase the academia-industry interface. It presently covers four colleges, through which it aims to alter the existing pedagogy of the country's higher education by bringing in active industry collaboration.
In doing so, senior executives of Crompton Greaves double up as guest lecturers
in these colleges; the Company's training facilities and corporate training
programmes are extended to the college faculty; students are given internships
to have an exposure to industry; and they make factory visits and attend the
Company's annual general meeting.
During the year, over 250 students visited the Company's plants to understand
the workings of manufacturing units; 60-odd students and faculty attended
various training programmes at Crompton Greaves' Management Development Centre
at Mulshi; the Company held various seminars and workshops at the participating
colleges; and over 100 students attended the last annual general meeting. In
the process, Crompton Greaves has touched the lives of some 1400 students and
75 faculty during 2006-07.
In addition to SIGMA, the Company's expertise in electrical engineering is
regularly shared and showcased to students and faculty of many other
institutes/colleges through structured plant visits. Many of the engineers and
managers serve as guest lecturers at different engineering and management
institutes. Moreover, at many of the Units, computer labs have been set up to
encourage families of employees to become computer literate.
At
Kanjur Marg, this initiative has been extended to the village of Kanjur Marg,
with the computer training lab being made available to the children of the
village.
Unit-Level
Csr Projects
To identify projects that would create a lasting impact on
the community, Needs Surveys were conducted at several locations. Based on
their findings, specific projects have been undertaken - where only a minimal
amount is contributed by the community with predominant support from Crompton
Greaves. Given below are some such projects.
The Switchgear Complex (Ambad) has adopted the village of Nandurvaidhya at
Igatpuri. Based on the findings of a Needs Survey, the reservoir that supplied
water to the village was reinforced and renewed, together with water pumping
facilities; and the immediate surrounding area was developed into a garden.
Health programmes including HIV/AIDS awareness are regularly conducted for the
villagers, in addition to self employment capability enhancement programmes.
Several village youth have been sponsored for a six-month electricians' course
at the ITI Nasik to strengthen their employability.
Director’s
Report
Management
Discussion and Analysis
In India
Kanjur Marg (Mumbai), Malanpur and Mandideep (Madhya
Pradesh)
Power and Distribution transformers.
Nashik
and Aurangabad
(Maharashtra), Bangalore (Karnataka) EHV and MV circuit breakers, EHV and MV
instrument transformers, vacuum interrupters, isolators, lightning arrestors, power quality products and solutions and electronic
energy meters.
Gurgaon (Haryana) Engineering Projects
Division (EPD).
Overseas
Mechelen (Belgium) The biggest plant of Pauwels. It manufactures large distribution
transformers, custom-made medium and large power transformers, mobile
substations and is engaged in contracting.
Cavan (Ireland) Smaller
single-phase and three-phase distribution transformers and micro-substations.
Charleroi (Belgium) The services division of Pauwels.
Washington (Missouri, USA) Threephase and pad-mounted transformers, unitized substations and
small power transformers.
Winnipeg (Canada) Medium and large power transformers up to 575 MVA, mobile
substations and high voltage direct current (HVDC) converter transformers.
Bogor (Indonesia) Power transformers from 10 MVA to 260 MVA.
Tapioszele (Hungary) The Ganz plant manufactures transformers, GIS and engages in
contracting and services. It also manufactures traction motors (see section on
Industrial Systems).
Dublin (Ireland), Jarrow (UK), Seymour (Connecticut, Usa)
and Eagle (Idaho, USA) These
Microsol facilities focus on the manufacture of substation and distribution automation products and systems; and
project delivery and sales
management for Europe, the Middle East and the US markets.
Consolidated
Financial Highlights for 2007-08
Gross Sales and Income from
services grew by 21% to Rs. 71814.000 millions in 2007-08 (US$ 1.79 billion).
This translates to a three year compounded annual growth rate (CAGR) of 29%.
CG Power (i.e. the transformer, switchgear
and engineering projects business of Crompton Greaves) grew by 21% to Rs.
48243.000 millions (US$ 1.20 billion) in 2007-08.
Industrial Systems increased
its revenues by 23% to Rs.11044.000 millions (US$ 275 million).
Consumer Products grew by 17%
to Rs. 11668.000 millions (US$ 291 million).
Operating Ebidta (operating
earnings before interest, depreciation, taxation and amortisation) for the
Company increased by 54% to Rs. 7439.000 millions (US$ 185 million) in 2007-08.
Including non-operating income, the EBIDTA was Rs. 8116.000 millions (US$ 202
million).
PBT (Profit before tax) increased by
41% to Rs. 6152.000 millions (US$ 153 million) in 2007-08.
PAT (Profit after tax) net of minority
interests and share of associate companies, grew by over 44% from Rs. 2817.000
millions in 2006-07 to Rs. 4067.000 millions (US$ 101 million) in 2007-08.
Consolidated Roce (Return on
capital employed) based on year-end capital rose from 26% in 2006-07 to 32% in
2007-08.
Consolidated Ronw (return on
net worth) increased from 31% in 2006-07 to 33% in 2007-08.
Consolidated Eps (earnings
per share) on fully diluted basis rose from Rs. 7.690 millions in 2006-07 to
Rs. 11.100 millions in 2007-08. Cash EPS increased from Rs. 11.200 millions to
Rs. 14.600 millions over the same period.
The key performance indicators of
CG Power are detailed in Table 1 above. This includes the performance of CG
Power’s Indian operations, as well as that of the international divisions:
Pauwels, Ganz (excluding motors)
and Microsol. Global statistics suggest an enormous growth
potential for the CG Power
business. Here is some data:
The International Energy Agency
estimates that between now and 2030, world demand for primary energy will rise
from 11.4 billion to about 17.7 billion tonnes of oil equivalent, and 74% of
this increase would be accounted for by India and China.
The current per capita electricity
consumption in India is at 625 kWh, versus 12,200 kWh in the US and 2,150 kWh
in China. Moreover, peak shortage of power in India has increased from 12% in 2003
to over 16% in 2007-08. Thus there is considerable head room for growth in the
power sector — and with it, the demand for transmission and distribution
equipment and solutions.
Given the synergies of size, global
reach, operational excellence and technical expertise within CG Power, this SBU
of Crompton Greaves is well poised to exploit these opportunities and continue
with its double-digit growth in the coming years.
Financial Performance:
The Indian Power Systems Business
The performance of the standalone
Indian Power Systems operations for 2006-07 and 2007-08.
CG Power’s Indian
operations showed a topline growth of 13% over last year to reach Rs.19633.000
millions. This translates to a 3-year CAGR of 27%. Year-on-year PBIT grew by
40% to Rs. 2577.000 millions.
CG Power’s Indian operations showed a topline growth of 13%
over last year to reach Rs.19633.000 millions. This translates to a 3-year CAGR
of 27%
Return on year-end capital employed (ROCE) was at 63% — a quantum jump over last year’s figure of 43%
02 PERFORMANCE OF THE INDIAN POWER SYSTEMS BUSINESS
Return on year-end capital employed
(ROCE) was at 63% — a quantum jump over last year’s figure of 43%. This
improvement in ROCE bears testimony to the eff orts that CG Power has putin
place during 2007-08 in reducing its working capital needs and creating better
operational efficiencies across all its product lines. It needs to be noted
that a 40% growth in PBIT has been achieved with a 4% reduction in capital
employed.
The unexecuted order book (UEOB) is
at Rs.17086.000 millions, which translates to over 10 months’ of current sales.
13%
Financial
Performance: Overseas Power Systems Business
Established over 60
years ago in Belgium, the Pauwels Group (‘Pauwels’) is a leader in the design
and manufacture of three-phase distribution and power transformers, in the
production and retrofi tting of substations and in providing integrated
solutions and services for the international transmission and distribution
market.
Ganz has a history of
125 years of being a quality supplier to the Hungarian heavy electrical
industry. It is in the business of contracting and sub-contracting turnkey
solutions in power transmission and distribution (including servicing and
retrofitting power plants), substations and industrial electrical systems. It
also manufactures power
transformers, GIS up to
245 KV, high-voltage asynchronous and traction motors at its plant in
Tapioszele, Hungary. Ganz is also engaged in substation contracting services.
Microsol was established
in 1986 and has a technological edge in the substation automation business.
Over the years, it has expanded into a full line developer and supplier of
automation equipment and solutions, as well the Overseas Power systems business
has shown 28% topline growth over 2006-07 to reach Rs. 29597.000 millions in
2007-08 (US$738 million).
As network enabled products.
Microsol’s customers are a mixture of major utilities, government and military
agencies as well as global OEMs. It also has complete hardware development
capabilities to produce customised interface boards. As mentioned earlier,
Crompton Greaves acquired Microsol on 28 May 2007.
The overall performance of the
overseas Power Systems business is detailed in Table 3.The overseas Power
Systems business has shown 28% topline growth over 2006-07 to reach Rs.
29597.000 millions in 2007-08 (US$ 738 million). Better realisation, greater
capacity utilisation and rationalisation of material costs have resulted in a
25% year-on-year growth of PBIT to Rs. 1795.000 millions in 2007-08 (US$ 45
million). Simultaneously, orders have increased: the UEOB has increased by
nearly 25% to Rs. 29449.000 millions (US$ 734 million), representing nearly 12
months of current sales.
Key Developments IN CG
Power
2007-08 saw several signifi cant
developments in CG Power. Given below are a few:
Product
Development: Cg Power In India CG Power’s
Kanjur Marg plant built and
supplied 220 / 220 KV, 200 MVA unit ratio transformers for National Aluminium Company Limited (NALCO) and 230 / 220 KV, 250
MVA for TNB, the state
electricity board of Malaysia. International
acceptance of this new product bodes
well for its future prospects. Additionally,the plant manufactured and supplied
to Bokaro Steel Plant its
largest furnace transformer at 33 KV
/ 46 MVA. CG Power’s Mandideep plant built for the fi rst time in India a 765 KV / 260 MVA single phase generating transformer —
which was supplied to the
National Thermal Power Corporation
(NTPC) for its plant at Sipat, in Chhattisgarh.
The distribution transformer
division at Malanpur and Mandideep, developed foil wound transformers based on
Pauwels technology, which reduce material quantity and costs while enhancing
effi ciency levels. It is an example of cross-border absorption of
best-in-class manufacturing practices and technologies. For the first time, the
division developed a 132 KV / 23 MVA class low power transformer, as well as a
5 MVA single phase locomotive transformer.
]
CG Power’s Nashik and Aurangabad
plants have developed a 67 KV and a 138 KV ANSI bushing, which are both being
tested for the US markets. These products have high global acceptability and
strong export prospects.
The switchgear division has been
developing several products for export markets: a 170 KV, 40 KA SF6 circuit breaker
for South East Asia and a 245 KV, 40 KA, 60HZ SF6 circuit breaker for Brazil.
It also produced a 36-245 KV disconnecter, which was supplied to Australia,
Peru and Ecuador.
Product
Development: Pauwels, Ganz and Microsol CG
Power, Through Pauwels, is involved in the development of Unipowe a
common software enabled companywide global platform for the design of
power transformers. The idea behind this project is to facilitate
quicker and more optimal designs; spread these lessons across various
facilities; and substantially reduce response time to customers.
There has been good progress in the Unipower project throughout 2007-08.
There is also a common global design platform for distribution
transformers called DesDT.
There were several new products /
services off ered by Pauwels during the year, such as transformers fi lled with
FR3 cooling liquid (natural ester); the prototype of a 5.5 MVA converter
transformer for RATP, the French metro; and the prototype of a 6.2 MVA bioSLIMR
transformer for an off shore wind park.
Pauwels comfortably retains its
No.1 position as the manufacturer of SLIMR transformers for wind power and wind
park installations. It is also considered a global market leader in the design
and sales of mobile substations up to 220 kV. Ganz’s tank shop in Szolnok
(Hungary) is being developed as a resource centre for the production of tanks
used for transformers for Europe, Middle East and Africa (the EMEA region).
Plans are being executed so that the Szolnok facility becomes a strategic enabler
for the EMEA business.
During 2007-08, Microsol has had
several wins, two of which are highlighted here. First, it introduced a
submersible control box (RCAM–E) for underground distribution switches. This
not only helped it to secure orders
from NSTAR, the Boston based
utility, but has also made it the automation solution of choice for all NSTAR
underground switch applications.
Second, Microsol has successfully
become the remote telemetry unit (RTU) automation of choice for the entire
Amtrak electrifi ed corridor from Washington DC to Boston. Microsol has also
developed an IEC 61850 interface for its XCell product range. This opens the
new IEC 61850 based substation market to the Company and provides an upgrade
path for existing customers to the new IEC 61850 standard. Consequently,
Microsol has started participating in some pilot projects based on IEC 61850
and are in some substantial tenders based on that standard.
Capacity
Enhancement And Vendor Development: India And Abroad For CG Power, 2007-08 saw
major developments in two areas: increase in capacity of its Indian operations
and strategic vendor development.
The SBU has taken a conscious
decision to identify areas that can be outsourced to strategic vendors, who
will work in manufacturing important components according to Crompton Greaves’
performance and quality standards and controls.
Simultaneously, ‘brownfi eld’
expansions at existing units have helped the SBU to grow capacity in order to
address the growing demands of the global market. The Kanjur Marg plant
commissioned a new Vapour Phase Drying Oven. Two new vendors were identifi ed
for transformer tank construction and development according to international
standards. Thanks to these measures, manufacturing capacity went up by almost 15%,
and resulted in a 20% growth in production volumes.
The Mandideep plant has also
developed a strategic vendor for the manufacture of the winding and core coil
assembly. This is expected to increase manufacturing capacity and reduce costs.
Signifi cant expansions have taken place at the Malanpur plant. This division,
which has shown the highest sales growth among the CG Power
plants in India, has increased
manufacturing capacity by 38%, including adding three vertical winding machines
and a foil winding machine. It has also developed two strategic vendors: one
for high quality corrugated fi n-wall tanks (the first time such a vendor has
been developed in India) and another for the built-core of the transformer.
The switchgear division reaped
benefits from capacity enhancements made in 2006-07, and has developed
strategic vendors for its 300 KV CT/IVT products. Product outsourcing and
alternate vendor development have helped the division enhance productivity and
reduce costs.
Production of circuit breakers was
enhanced by over 40%, in large part due to the addition of nine assembly and
test pads in the plant.
Mandideep plant built
for the fi rst time in India a 765 KV / 260 MVA single phase generating
transformer — which was supplied to the National Thermal Power Corporation
(NTPC) for its plant at Sipat, in Chhattisgarh
ASSEMBLY OF A 420 KV
SF6 CIRCUIT BREAKER AT
THE NASHIK SWITCHGEAR DIVISION
In Pauwels, too, there have been
several capacity increasing initiatives in 2007-08. Investments were made in the
Indonesian plant to raise capacities. This involved setting up a floating core
coil assembly platform; installing a second drying oven; and a heavy duty
vacuum pump. The distribution transformer facility at Cavan (Ireland) increased
efficiency by 5% at little or no cost, and also added additional shifts in the
bottleneck areas to increase output. The distribution transformer facility in
the US is in the midst of an expansion programme which will facilitate
manufacture of 10MVA through 60 MVA medium power transformers up to 138 KV, 650
KV BIL.
Developing
New Markets and Customers The SBU’s
power transformer division
achieved 32% growth over last year in
its international orders. Export orders were obtained from eight new countries, including Greece, Trinidad, Qatar, Jordan and
Ecuador. The division also
supplied a new product: 2 X 250
MVA 230/220 KV transformers for the Singapore
and Malaysian power grids. Oman and
Guatemala were countries where the division
supplied equipment for the first time. Pauwels
continued enjoying successes in the wind
power industry, especially in Southern Europe,
mainly Spain, where several new customers
signed on to the SLIMR or bio SLIMR solution
throughout 2007-08. In addition, there was
a breakthrough in selling of wind power
transformers in the Americas, when the first 38 units of 2300 kVA SLIMR transformers were sold to Enercon for the Ripley Wind Farm
in Canada. Ganz’s transformers
have also been getting new orders in Europe — in Spain, Belgium, Ireland and
the UK.
Ganz is executing one of its
largest single GIS orders for the Steel Authority of India Limited’s Bhilai
steel plant for 10 bays of 220 KV GIS and 16 bays of 132 KV GIS. It also
obtained an order for Power Grid Corporation of India Limited for the supply of
three bays of 132 KV GIS. In addition, the division became an approved vendor
for customers such as Delhi Metro Rail Corporation, Reliance Energy, Torrent
Power and the Nuclear Power Corporation of India. International marketing of
switchgear also received a boost with new orders from Italy, Malaysia, Chile,
Spain, Canada, Myanmar and Vietnam.
Industrial Systems
The Company’s Industrial Systems
SBU manufactures the following categories of products:
v
High tension (HT) motors
v
Railway transportation equipment
v
Low tension (LT) motors
v
Direct current (DC) motors
v
Railway signalling equipment
v
Fractional horse power (FHP) motors
v
Alternators
v
Stampings
Its facilities are located at
following locations:
MADHYA PRADESH Mandideep
(HT motors and rail transportation equipment) and Pithampur (railway signalling
equipment).
MAHARASHTRA Kanjur Marg
(stampings) and Ahmednagar (LT motors, alternators and stampings).
Goa Bardez
(LT motors) and Kundaim (FHP motors).
Hungary Tapioszele
(rotating machines). the financial performance of the Industrial Systems Group.
In spite of growing the operations
by over 23%, the division’s year-end capital employed decreased by 17% to Rs.
1618.000 millions. This has resulted in a signifi cant growth in ROCE: 121% in
2007-08, versus 67% in the previous year. The division’s UEOB increased by 26%
to Rs. 4247.000 millions which translates to over 4 months’
current sales.
During the year, the HT and LT
motors divisions created additional capacity which helped in growing
production. The cement sector has been the prime customer for the Company’s
slip ring induction motors, with Crompton Greaves’ products having very high
acceptance among the end users. The division is now concentrating
Year Ended 31 March, in Rs. Million FY 2007 FY 2008 Growth
|
Year Ended 31st March in Rs.
Million |
FY 2007 |
FY 2008 |
Growth |
|
Gross Sales |
8971.000 |
11044.000 |
23% |
|
PBIT |
1302.000 |
1956.000 |
50% |
|
Capital Employed |
1954.000 |
1618.000 |
17% |
|
Unexecuted Order Book |
3367.000 |
4247.000 |
26% |
Research and
Development (R and D)
R and D is an important business
enabler for the Company. The Crompton Greaves Global R and D Centre, which has
over 30 years of work to its credit, is manned by 130 people — of whom 16 hold
doctorates and 77 more are qualified technical personnel. Recognised by Department
of Scientifi c and Industrial Research, Government of India (DSIR), both for
electronics and electrical R and D work, the department has 18 technical areas
of expertise.
R and D VISION
The Company’s R and D vision for
2015 is as follows:
25% of the Company’s revenue shall
be generated through new product developments.
Five breakthrough platform
technologies shall be developed for the Company.
Product Development Cycle time (PDC
time) shall be comparable to best-in-class.
1,000 Intellectual Property Rights
(IPR) are to be filed by 2015.
R and D shall focus the shift
towards intelligent products and solutions.
To achieve all of this, the Company
envisions scaling up its R and D budget gradually to reach 4% of sales.
Intellectual Propoerty Rights (IPRs)
IPRs have, over the past few years,
been a focus area for the Global R and D Centre at the Company. Starting with
18 IPRs fi led in 2004-05, the current year saw a quantum increase in IPRs
filed by the Company. In 2007 -08, Crompton Greaves’ Global R&D Centre fi
led a total of 212 IPRs: 63 for patents, 144 for design IPRs and 5 for
trademarks.
Sustainability
The Global R and D Centre also
believes in sustainability and the future of renewable energy sources. While
identifying wind energy as an area of focus for technology development, the
Global R and D Centre installed two windmills at Kanjur Marg, which can produce
up to 270 kWh per month — enough to light the streetlights of the facility.
Competency
Enhancement and Technical Training
Recognising the need
for competency enhancement, the Global R and D Centre inaugurated the CG
Technical Training School in January 2008 to enhance the competency of Crompton
Greaves’ engineers in a very structured way. 250 people from the Company’s
operations across the globe will be enhancing their product technology
expertise in the next five years. The first two batches of the first course
have already been conducted.
Awards and
Recognition
During the year,
Crompton Greaves’ Global R and D Centre was certified for ISO 27001. It is the
only Information Security Management System (ISMS) certified engineering R and
D centre in India. It bagged the National Award in 2007 for the best R and D
efforts. At ‘Elecrama 2008’, the Company won the category ‘Best Product Competition
(Indian Exhibitors)’ for its ‘Dream Transformer’. It also won the ‘Golden
Peacock Innovation Award’ for its web-based real time condition monitoring
system.
The Crompton Greaves Global R and D Centre, Which Has Over 30 Years of Work to Its Credit, Is Manned By 130 People — Of Whom 16 Hold Doctorates And 77 More are QualifiedTechnical Personnel
Crompton Greaves’ Global R and D Centre Fi Led A Total Of 212 Iprs: 63 For Patents, 144 For Design Iprs and 5 For Trademarks
Information
Technology
Infrastructure and Disaster Recovery
Crompton Greaves has a
robust IT infrastructure and network across all its manufacturing and marketing
locations. The SAP platform is ably supported by hardware using the latest
Multi- Protocol Label Switch, enabling the IT networks to deliver a wide
variety of advanced, value added services over a single infrastructure with
efficient connectivity and ease of maintenance and diagnosis.
The Company’s principal
data centre houses all the servers that run critical applications, such as SAP,
Business Warehouse, Dealer Portal, After- Sales Service Portal, CGHR4U and Six
Sigma. The Company has a well-defi ned disaster recovery plan for accessing
critical application from its secondary site at Chennai. On trials, data has
been re-accessed in
less than 30 minutes, and the system can ‘go live’ in less than two hours from
a system breakdown situation.
Financial
Performance
They first highlight
Crompton Greaves’ standalone results, after which they discuss the financial
performance of Pauwels, Ganz and Microsol and, finally, the consolidated
financials for the Company as a whole.
Standalone Performance
The standalone
performance of Crompton Greaves for the year ended 31 March 2008
(profitability, assets efficiency and leverage ratios) of the standalone entity
for 2006-07 and 2007-08.
Gross Sales grew by more than 15% over the previous
year to reach Rs. 42226.000 millions. Net sales increased by 15% to Rs.
38758.000 millions.
Material and Operating Costs Despite the pressure of rising input
costs, a combination of better supply chain efficiencies, intelligent
procurement management and vendor development has meant that material costs
have grown by 10.4% (compared to a 39.2% increase in material costs during the
previous year). Consequently, materials, manufacturing and operating expenses
as a percentage to net sales have dropped from 75.1% in 2006-07 to 72.2% in
2007-08, resulting a net return of 2.9% on net sales.
Operating EBIDTA Operating earnings before interest,
taxes, depreciation and amortisation (operating EBIDTA) grew by 42% over the
previous year to Rs.4838.000 millions. Thanks to a 15% topline growth and
significant operating efficiencies, operating EBIDTA to net sales margin
increased by 230 basis points: from 10.2% in 2006-07 to 12.5% in 2007-08.
NOI Non-operating income for 2007-08 almost doubled to Rs.696 million.
Hence, EBIDTA including NOI as a percentage to net sales grew 310 basis points
from 11.2% in 2006-07 to 14.3% in 2007-08.
Operating Profit Before Taxes (operating PBT) witnessed 53% growth
over last year to reach Rs. 4160.000 millions. PBT including NOI increased by
58% to reach Rs. 4857.000 millions.
Tax Liabilities grew by 50% over last year to Rs.
1717.000 millions (2006-07: Rs. 1146.000 millions).
Profit After Tax Despite the increase in tax liabilities, profit
after tax (PAT) grew 63% to Rs. 3139.000 millions.
Roce Notwithstanding
increase in fixed assets, return on capital employed showed a sharp improvement
from 34.4% in 2006-07 to 47.9% in 2007-08. This has been brought about by two
factors. First, a control on debtors and inventory, which shows up in the
improved asset turns (the number of times net working capital has turned during
the year) — and has improved from 8.1 times in 2006-07 to 10.7 times in 2007-
08. Second, an increase in profi tability, which can be seen from the PBT to
net sales ratio, which improved from 9.1% in 2006-07 to 12.5% in 2007-08.
Leverage Ratios also showed improved substantially during 2007-08.
Debt-equity ratio dropped from 0.4 to 0.1, while the interest coverage ratio
(indicating the standalone entity’s capability to service debt) increased from
12.4 to 20.4. Interest costs, in absolute terms, have actually reduced in
2007-08, in spite of its growth in operations, thus underscoring the standalone
entity’s ability to optimally utilise its working capital and fi xed assets.
Pauwels, Ganz and Microsol
Performance ( Cg International Bv: Consolidated)
The consolidated fi nancial
performance of the Pauwels group of companies,
Gross Sales of the Company reached Rs. 30062.000 millions (US$
749.3 million) in 2007-08, representing a 29% growth over the previous year.
Operating Ebidta at Rs. 2251.000 millions (US$ 56.1 million) refl
ects a 64% rise over last year’s figures.
Operating Pbt for 2007-08 was at Rs. 1050.000 millions (US$ 26.1
million). In rupee terms, it represented an almost 88% rise over 2006-07. In US
dollars terms, the growth was 206% over the previous year. Including
non-operating income, PBT for 2007-08 grew by 4% to Rs.1275 million (2006-07:
Rs. 1,229 million).
PAT Profit
after taxes has grown 6% during 2007-08 to reach Rs. 952.300 millions. In US
dollars, PAT for 2007-08 was US$ 23.7 million.
Operations
The manufacturing sector has been averaging 9% growth during 2004 -
2007. India's manufacturing base, which is the fourth-largest amongst emerging
economies, is among the fastest growing, and has witnessed greater investments
as a proportion of Gross Domestic Product than any country, except China.
Indian manufacturers, with the tremendous expertise gained in the domestic
market, are progressively spreading their wings to reach out to Global markets.
Indian Corporates have been actively taking aggressive steps through both
Acquisitions and Greenfield investments abroad. All these initiatives are
boosting 'Brand India' in the Global arena.
During the first half of 2007-08, the cumulative expansion of industrial output
was approx. 9.70%. Manufacturing output expanded by 10.40% during the same
period and the rate of expansion of electricity generation was at 7.20%.
Since August 2007, the World financial markets and US as well as European
lenders have been adversely affected as the sub-prime mortgage phenomenon
unraveled. Considerable pressure continues on the prices of oil, food and other
raw materials, which indicates that inflation management in 2008-09 will be a
greater challenge. The variations in related Global prices, which exhibit
volatility based on changes in the exchange rate, are an important force which
has, and will continue to impinge on the competitiveness of Indian
manufacturing and its future profitability.
In anticipation, the Company has already intensified its marketing efforts to
address this potential economic slowdown. The efforts center around building
greater customer contact, strengthening of networks, new products
commercialisation and improved value propositions from existing products.
The Company has also shortened several dimensions of its
marketing processes through introduction of an order allocation process between
different geographies, direct order placement and greater e-enablement of
processes for dealer business. The Company has also forged necessary alliances
to strengthen its entry into new market segments.
The various market centric initiatives undertaken, coupled with focus on a
Product-Solutions domain has enabled the Company to achieve a turnover of Rs.
42225.980 millions, during the year under review, as compared with Rs.
36599.760 millions during the previous year 2006-07, a rise of 15%.
The synergy generated through the Pauwels, Ganz and Microsol acquisitions,
resulted in the consolidated turnover of the Company increasing from Rs.
59340.390 millions to Rs. 71813.780 millions, an increase of 21%.
The rising crude oil, steel, copper and aluminum prices exerted considerable
pressure on profitability. However, by expansion of its dedicated vendor base
and strategic purchase contracts, the Company has been able to retain its edge
in terms of costs. E-sourcing has helped the Company to develop and implement
an effective Company-wide, collaborative purchasing process, thus significantly
lowering costs by co-ordinating and leveraging common purchases across the
Company. Further, better capacity utilisation, value engineering, improved
execution, better order selection and control over operating expenses, off set
the adverse impact of material cost increases to a large extent.
With CG's progressive Global footprint, the need to strive for 'One World
Quality' is becoming increasingly imminent, and, this will require changing the
attitudes to a much higher quality mind-set, to consistently deliver Quality as
expected by the Global customers. The efforts in this direction will realise
its results through adoption of best-in-class standards at all locations
worldwide. Better design platforms are being initiated in all the major
business areas to facilitate faster designs, with greater operational and
energy efficiency and, which also consume reduced material content.
This will yield the twin objectives of satisfying customer expectations, whilst at the same time improving the Company's profitability.
The thrust on Six Sigma and the Crompton Greaves Productivity System (CGPS),
continues with increased vigour, in driving the Company's initiatives towards
Quality, as perceived by the Customer and further increasing productivity from
all its plants worldwide.
All these above efforts resulted in the Company recording a noteworthy profit
before tax of Rs. 4856.520 millions, an increase of 58% as compared with last
year. The consolidated profit before tax increased from Rs. 4359.560 millions
to Rs. 6152.390 millions.
Promoter Group
During the year, Mr. Gautam Thapar created a separate brand identity for the
companies under his ownership and christened it as 'Avantha' Group. The Avantha
Group includes some companies of the BM Thapar Group, since vested with Mr.
Gautam Thapar and the erstwhile LM Thapar Group companies bequeathed to Mr.
Gautam Thapar. The BM Thapar Group and LM Thapar Group were recognised by the
Securities and Exchange Board of India by its Order dated 8 October 2001 (as
modified from time to time).
Therefore, Crompton Greaves Limited, along with the following entities,
constitutes a Group as defined under the Monopolies and Restrictive Trade
Practices Act, 1969:
v Ballarpur Industries Limited
v Bilt Graphic Paper Products Limited
v Ballarpur International Holdings B.V
v Ballarpur Paper Holdings B.V
v Ballarpur Graphic Paper Holdings B.V
v Ballarpur International Paper Holdings B.V
v Ballarpur International Graphic Paper Holdings B.V. (under incorporation)
v Sabah Forest Industries Sdn. Bhd
v Bilt Tree Tech Limited
v NewQuest Corporation Limited
v Bilt Paper Holdings Limited
v KCT Papers Limited
v KCT Chemicals and Electricals Limited
v APR Sacks Limited
v The Paperbase Company Limited
v Janpath Investments and Holdings Limited
v Bilt Industrial Packaging Company Limited
v Biltech Building Elements Limited
v UHL Power Limited
v Asia Aviation Limited
v Toscana Lasts Limited
v Toscana Footwear Components Limited
v NQC Global (Mauritius) Limited
v NQC International (Mauritius) Limited
v NewQuest Services Private Limited
v Avantha Technologies Limited
v New Quest Insurance Broking Services Limited
v Avantha Power and Infrastructure Limited
v Global Green Company Limited
v Global Green USA Limited
v GG International N.V
v Intergarden N.V
v Intergarden (India) Private Limited
v Dunakiliti Kanzervuzem Kft
v Greenhouse Agraar Kft
v Floragarden Tarim Gida Sanay ve Ticaret A.S
v Solaris Holdings Limited
v Solaris Chemtech Limited
v Solaris Chemtech Industries Limited
v Solaris Industrial Chemicals Limited
v Salient Business Solutions Limited
v Salient Knowledge Solutions Limited
v Salient Financial Solutions Limited
v Salient Business Solutions USA, Inc
v CG Energy Management Private Limited [formerly, CG Motors Private Limited]
v CG Capital and Investments Limited
v CG-PPI Adhesive Products Limited
v Malanpur Captive Power Limited
v Brook Crompton Greaves Limited
v CG Actaris Electricity Management Limited
v CG Lucy Switchgear Limited
v International Components India Limited
v CG International B.V.
v Pauwels International N.V
v Pauwels Americas Inc
v PT Pauwels Trafo Asia
v Pauwels Trafo Gent N.V
v Pauwels Canada Inc
v Pauwels Transformers Inc
v Pauwels Trafo Ireland Limited
v Pauwels France SA
v Pauwels Trafo Belgium N.V
v Pauwels Trafo Service N.V
v Pauwels Middle East Trading and Contracting Limited
v Crompton Greaves Hungary Kft
v Transverticum Kft
v Ganz Transelektro Villamossagi Zrt.
v Microsol Holdings Limited
v Microsol Limited, Viserge Limited
v Microsol (UK) Limited
v Tricon Controls Limited
v Microsol Inc.
Subsidiary Companies
The Company has four Indian subsidiaries viz CG Energy Management Private
Limited [formerly, CG Motors Private Limited] (CEM), CG Capital and Investments
Limited (CG Capital), CG-PPI Adhesive Products Limited (CG PPI) and Malanpur
Captive Power Limited (MCPL). CEM, CG Capital and MCPL are subsidiaries of the
Company, and CG PPI, being a subsidiary of CG Capital, in terms of the
provisions of the Companies Act, 1956, is also the Company's subsidiary.
The Netherlands-based CG International B.V. a 100% subsidiary of the Company, is the ultimate holding company of the Pauwels, Ganz and the Microsol Group, comprising 19 downstream subsidiaries, as under:
v Pauwels International N.V.
v
Pauwels Americas Inc
v
PT Pauwels Trafo Asia
v
Pauwels Trafo Gent N.V.
v
Pauwels Canada Inc
v
Pauwels Transformers Inc
v
Pauwels Trafo Ireland Limited
v
Pauwels France SA
v
Pauwels Trafo Belgium N.V.
v
Pauwels Trafo Service N.V.
v
Crompton Greaves Hungary Kft
v
Transverticum Kft
v
Ganz Transelektro
Villamossagi Zrt.
v
Microsol Holdings Limited
v
Microsol Limited
v
Viserge Limited
v
Microsol (UK) Limited
v
Tricon Controls Limited
v
Microsol Inc
In totality, the Company has 24 subsidiaries, 4 Indian and 20
foreign.
The Company has obtained an exemption under Section 212 of the Companies Act,
1956, from annexing to this Report, the Annual Reports of the abovementioned 4
Indian subsidiaries and 20 foreign subsidiaries, for the year ended 31 March
2008. However, if any Member of the Company or its subsidiaries so desires, the
Company will make available, the Annual Accounts of the subsidiaries to them,
on request. The same will also be available for inspection at the Registered
Office of the Company and of its subsidiaries, during working hours up to the
date of the Annual General Meeting.
The details of each subsidiary with respect to capital, reserves, total assets,
total liabilities, details of investment(except in case of investment in
subsidiaries), turnover, profit before taxation, provision for taxation, profit
after taxation and proposed dividend are detailed at Page 99 of the Annual
Report.
Director’s Profile
Mr Gautam Thapar and Mr Satya Pal
Talwar retire by rotation at the forthcoming Annual General Meeting and are
eligible for re-appointment.
Mr Gautam
Thapar is the Chairman and CEO of one of
India’s foremost diversified Groups- Avantha. The Group’s revenues are in
excess of USD 3 billion and it operates in eight countries, employing over
20,000 people.
The Avantha Group encompasses
companies in diversifi ed sectors like power transmission and distribution
equipments, pulp and paper, horticulture and food processing, farm forestry,
chemicals, infrastructure and information technology.
Crompton Greaves Limited and
Ballarpur Industries Limited, India’s largest paper manufacturer, are the
listed companies amongst the Group companies.
Mr Thapar is presently the Chairman
of Ballarpur Industries Limited. He is also the Chairman of the Board of
Directors of Crompton Greaves Limited, Member of its Audit and Remuneration
Committees and Chairman of its
Shareholders/Investors’ Grievance
Committee.
An alumnus of the prestigious Doon
School, Mr Thapar completed his Chemical Engineering from Pratt Institute, USA
and has over 2 decades of industrial experience.
Mr Thapar currently serves on the
Boards of various Industry Associations and Professional Organisations.
Directorships
v
Ballarpur Industries Limited
v
Salient Business Solutions Limited
v
Solaris Holdings Limited
v
NewQuest Corporation Limited
v
Bilt Paper Holdings Limited
v
Asahi India Glass Limited
v
Global Green Company Limited
v
Solaris Chemtech Limited
v
KCT Papers Limited
v
Lavasa Corporation Limited
v
Janpath Investments and Holdings
Limited
v
Karam Chand Thapar and Bros Limited
v
CG Capital and Investments Limited
v
Sohna Stud Farm Private Limited
v
Osian’s Connoisseurs of Art Private
Limited
v
Vani Agencies Private Limited
Directorships In Foreign Companies
Compass Limited (Holding Company of
Bata International Limited)
Committee Positions
v
Ballarpur Industries Limited (1)
v
Bilt Paper Holdings Limited (1)
v
Asahi India Glass Limited (1)
v
CG Capital and Investments Limited
(1)
Mr Thapar is a great believer in
Corporate Social Responsibility, which he advocates and makes a priority in all
the companies that he leads. He is an active member of the Pratham India
Education Initiative and President of the Thapar University, one of India’s top
twenty technical schools.
Mr Thapar currently holds 220715
shares in the Company in his individual capacity.
Mr Satya
Pal Talwar is a law graduate and also holds a
professional qualifi cation as Certifi ed Associate of the Indian Institute of
Bankers. He has more than 40 years of operational and policy formation
experience in Commercial and Central Banking. He was the Deputy Governor of the
Reserve Bank of India, Chairman - Indian Banks Association; Chairman and
Managing Director of three Nationalised Banks, and had also served on the
Boards of the Securities and Exchange Board of India, Banks, Insurance
Companies and Financial Corporations in India. Mr Talwar is an Independent
Director on the Board and Chairman of the Audit Committee of Crompton Greaves
Limited.
DIRECTORSHIPS
v
Reliance Life Insurance Company
Limited
v
Reliance General Insurance Company
Limited
v
Videocon Industries Limited
v
Reliance Communications Limited
v
Housing Development Infrastructure
Limited
v
Reliance Communication
Infrastructure Limited
v
Reliance Telecom Infrastructure
Limited
v
Ambience Projects and
Infrastructure Limited
v
SPS Steel and Power Limited
v
Reliance Asset Reconstruction
Company Limited
Committee Positions
v
Reliance Life Insurance Company
Limited (1)
v
Reliance General Insurance Company
Limited (1)
v
Videocon Industries Limited (1)
v
Reliance Communications Limited (2)
v
Housing Development Infrastructure
Limited (1)
v
Reliance Communication
Infrastructure Limited (1)
v
Reliance Telecom Infrastructure
Limited (2)
In the opinion of
the management, the business segment comprises the following:
(a) Power Systems :
Transformer, Switchgear, Turnkey Projects
(b) Consumer
Products : Fans, Luminaire, Light Sources and Pumps
(c) Industrial
Systems : Electric Motors and Alternators, Drives
25 Disclosures
as required by Accounting Standard (AS) 18 Related Party Disclosures
i) List of
related parties over which control exists:
|
Sr.
No. |
Name
of the related party |
Relationship |
|
1. |
CG Capital and
Investments Limited |
Wholly owned
Subsidiary |
|
2. |
CG Energy
Management Private Limited (formerly CG Motors Private Limited) |
Wholly owned
Subsidiary |
|
3. |
CG PPI Adhesive
Products Limited |
Subsidiary of CG
Capital and Investments
Limited |
|
4. |
Malanpur Captive Power Limited |
Subsidiary of Crompton Greaves Limited |
|
5. |
CG International B.V. |
Wholly owned Subsidiary |
|
6. |
Pauwels International N.V. |
Wholly owned subsidiary of CG International B.V. |
|
7. |
Pauwels Trafo Belgium N.V. |
Subsidiary of Pauwels International N.V. |
|
8. |
Pauwels Trafo Gent N.V. |
Subsidiary of Pauwels International N.V. |
|
9. |
Pauwels Trafo Ireland Limited |
Wholly owned subsidiary of Pauwels International N.V. |
|
10. |
Pauwels France S.A. |
Subsidiary of Pauwels International N.V. |
|
11. |
Pauwels Transformer Inc |
Wholly owned subsidiary of Pauwels International N.V. |
|
12. |
Pauwels Americas Inc |
Wholly owned subsidiary of Pauwels International N.V. |
|
13. |
Pauwels Canada Inc |
Wholly owned subsidiary of Pauwels International N.V. |
|
14. |
Pauwels Trafo Service N.V. |
Subsidiary of CG International B.V. |
|
15. |
PT Pauwels Trafo Asia |
Wholly owned subsidiary of Pauwels International N.V. |
|
16. |
CG Hungary Kft |
Wholly owned subsidiary of CG International B.V. |
|
17. |
Ganz Transelektro Villamossagi Zrt |
Wholly owned subsidiary of CG Hungary Kft |
|
18. |
Transverticum Kft |
Wholly owned subsidiary of Ganz Transelektro Villamossagi Zrt. |
|
19. |
Microsol Holdings Limited |
Wholly owned subsidiary of CG International B.V. |
|
20. |
Microsol Limited |
Wholly owned subsidiary of Microsol Holdings Limited |
|
21. |
Microsol (UK) Limited |
Wholly owned subsidiary of Microsol Holdings Limited |
|
22. |
Viserge Limited |
Subsidiary of Microsol Holdings Limited |
|
23. |
Microsol Inc |
Wholly owned subsidiary of Microsol Holdings Limited |
|
24. |
Tricon Controls Limited |
Wholly owned subsidiary of Microsol (UK) Limited |
.
During the year, the companies which have been acquired and liquidated are as under:
v Microsol Europe Limited
v
Microsol (Utility Solutions) Inc
Key Management Personnel and their Relatives:
G. Thapar -
Chairman and Promoter Director
S.M. Trehan -
Managing Director
Other Related Parties in which a director is
interested:
v
Ballarpur
Industries Limited
v
Solaris
Chemtech Limited
v
Bilt Graphic
Paper Products Limited
v
Bilt Power
Limited
v
Asia Aviation
Limited
The company also has Joint Ventures with
different companies listed here under:
Ř
CG Glass
Limited
Ř
CG
Programmable Solutions Private Limited
Ř
CG Igarashi
Motors Limited
Ř
International
Components India Limited
Ř
CG PPI
Adhesive Products Limited
Ř
CG Schlumberger
Electricity Management Limited
Ř
CG Lucy
Switchgear Limited
Ř
CG Smith
Software Limited
Ř
Coreel
Microsystems Inc., USA
Ř
CG Maersk
Information Technologies Limited
Ř
Hitachi CG
Motor Engineering Limited
Ř
CG Elin Power
Systems Limited
Ř
CG Brook
Hansen Electric Motors Limited
Ř
Power
Equipment Limited, Dubai
Ř
Brook Crompton
Greaves Limited
Ř
CG Newage
Electrical Limited
Ř
Paxonet
Communications Inc, U.S.A.
Trade Terms
Ř
Advance
Diecast
Ř
Glostar
Electricals Private Limited
Ř
Ashapura
Enterprises
Ř
Aqua Flow
Ř
Bestlite
Electricals Private Limited
Ř
Govik
Electricals
Ř
National Wire
and Metal Limited
Ř
Navnath
Fabricators
Ř
Desai and
Brothers
Ř
Amit
Industries
Ř
Anant
Engineering Works
Ř
Gee Cee Oswal
Enterprises
Ř
Rushabh
Enterprises
Ř
RK Lighting
Private Limited
Ř
Paras
Enterprise
Ř
Paras Pump
Private Limited
Ř
Sundara
Industries (India)
Ř
United
Industrial Components
Ř
Vishgral
Industries
Ř
J S
Engineering Works
Ř
Suraj
Foundries Limited
Ř
Jayanti
Castings Private Limited
Ř
Shakti
Enterprises
Ř
Hindustan
Forging and Steel
Ř
Govik
Electricals Private Limited
Ř
Shailesh
Engineering Company
Ř
Kelin
Electricals Private Limited
Ř
Letter
Emporium
Ř
Mitsubishi
Electric Corporation, Japan
Ř
Allied Signal
Technologies Inc, USA
Ř
Hyundai Heavy
Industries Company Limited, Korea
The company has
been accredited with ISO 9001 and ISO 14001 Certifications.
The company also
received approvals from the CESI, CSA, BASEEFA and CE for some of its products.
The company has technical collaboration with
the following :
Ř VNIIIS, Russia
Ř Hitachi Limited, Japan
Ř Eurogen, Italy
Ř Siemens Limited, Germany
Ř Mitsubishi Electric Corporation, Japan
FIXED ASSETS
v Freehold Land
v Buildings
v Plant and Equipments
v Railway Sidings
v Furniture and Fixtures
v Vehicles
v Leasehold Land
v Computer Software
v Technical Know - how
Contingent
Liabilities
|
Particulars |
31.03.2007 (Rs.
in millions) |
|
Claims against
the Company not acknowledged as debts |
94.800 |
|
Sales Tax liability that may arise in
respect of matters in appeal |
23.600 |
|
Excise duty/Service tax liability that may
arise in respect of matters in appeal preferred by the Company |
150.400 |
|
Excise
duty/Service tax liability that may arise in respect of matters disputed by
the Department |
33.900 |
|
Income tax liability that may arise in
respect of matters in appeal preferred
by the Company |
42.400 |
|
Guarantees given
on behalf of subsidiary Companies |
5094.400 |
|
Guarantees given
on behalf of Associate Company |
47.340 |
|
Bills discounted |
981.500 |
Press Release
Crompton
Greaves wins India Manufacturing Excellence Awards
Crompton
Greaves wins three India Manufacturing Excellence Awards instituted by Frost
and Sullivan. The study benchmarks CG's manufacturing processes at its various
units.
Based
on the findings of the assessment, Frost and Sullivan awarded the Gold award to
the S6 and Power Quality Business, Aurangabad unit while the Fans and
Appliances Division, Bethora and the Switchgear Complex, Nashik, were chosen for
the silver Award in the Engineering Category.
The
awards ceremony was held on the same day and Mr. AN Ravichandran,
Vice-President, Fans, Mr. JG Kulkarni, Vice-President Switchgear and Dr. R
Venkatesh, General Manager S6 and Power Quality Business received the awards on
behalf of their respective Divisions.
From Crompton Greaves, 7 (seven) Best Practices were
identified by Frost and Sullivan, and a presentation on Implementation and
Benefit of MOST/CGPS in improving productivity was done by Mr. N Krishnan,
General Manager Engineering (Transformers) on 9th December 2005.
Crompton
Greaves one of 21 Indian Firms to take on the world.
A
joint study by CII and Boston Consulting Group, an internationally reputed consulting
firm reveals that some of the most feared global challengers to be growing in
India.
A
dozen rapidly developing economies (RDEs)-including India, China, Russia,
Brazil, Hungary and Turkey-are home to about 100 companies that are tearing
down old business bastions, says the study. The study hints that the 100, with
21 Indian and 44 Chinese firms, are only the vanguard.
The
study mentions that Crompton Greaves (Thapar Group) has made a dramatic
turnaround under Gautam Thapar's leadership. Crompton Greaves has gone through
a dramatic overhaul and was now preparing to compete globally with peers like
ABB and Siemens.
The study clubs Crompton Greaves with L and T as the
emerging global challengers in the Engineering segment and with the Bharat
Forge in assuming global category leadership in specific narrow product areas.
Crompton Greaves acquires French firm
Mumbai, June 2: Electrical equipment manufacturer Crompton Greaves on Monday
said it has completed the acquisition of French firm Societe Nouvelle de
Maintenance Transformateurs (Sonomatra) for about Euro 1.30 million.
This acquisition would enhance the firm's capabilities in the services segment
of its transmission and distribution business, Crompton Greaves said in a
filing to the Bombay Stock Exchange.
Sonomatra provides services like on-site maintenance and repair of power
transformers and on-load tap changers, oil analysis, oil treatment and
retro-filling.
Earlier, the company had acquired Belgium-based Pauwels May 13, 2005, Hungarian
based Ganz (GTV) and Transverticum Kft (TV), on October 17, 2006, and Microsol
Holdings (MHL) and its associate Companies in May 2007, as per information
available on the company website.
Shares of the company closed at Rs 235.60, UP 2.04 per cent on BSE.
Crompton Greaves acquires French firm
MUMBAI: In its fourth global acquisition, electrical equipment major Crompton
Greaves Limited has bought French power transformers repairing leader Societe
Nouvelle de Maintenance Transformateurs (Sonomatra) for 1.30 million euros
(Rs.85 million or $2.01 million).
Crompton Greaves in a regulatory filing said the acquisition would help its
capabilities in the services segment of its transmission and distribution
business.
Sonomatra is engaged in providing on-site maintenance, repair of power
transformers, on-load tap changers, oil analysis, oil treatment and
retrofilling.
Though Crompton Greaves has been focusing on three segments - power systems,
industrial systems and consumer products - in the Indian market, it is mainly
identified with its fans and lighting business.
This is the fourth acquisition for the firm in the international arena.
It acquired Belgium-based transformer manufacturer Pauwels three years ago,
gaining entry not just into Belgium but also Ireland, Canada, the US and
Indonesia where Pauwels had manufacturing facilities.
Thereafter, it acquired Hungary-based Ganz, a leading manufacturer of extra
high voltage transformers, gas insulated switchgear and other related
components.
Last year, it acquired Ireland-based transmission-and distribution-focussed
Microsol Holdings Limited and its associate companies.
Crompton buys Sonomatra for 1.3 mn euros
Electrical equipment manufacturer Crompton Greaves today said it has completed
the acquisition of French firm Societe Nouvelle de Maintenance Transformateurs
(Sonomatra) for about Euro 1.30 million.
This acquisition would enhance the firm's capabilities in the services segment
of its transmission and distribution business, Crompton Greaves said in a
filing to the Bombay Stock Exchange.
Sonomatra provides services like on-site maintenance and repair of power transformers
and on-load tap changers, oil analysis, oil treatment and retro-filling.
Earlier, the company had acquired Belgium-based Pauwels May 13, 2005, Hungarian
based Ganz (GTV) and Transverticum Kft (TV), on October 17, 2006, and Microsol
Holdings (MHL) and its associate companies in May 2007, as per information
available on the company website. Shares of the company closed at Rs 235.60, UP
2.04 per cent on BSE.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The
Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 42.71 |
|
UK Pound |
1 |
Rs. 85.51 |
|
Euro |
1 |
Rs. 68.02 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market
trend (10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|