Crompton Greaves Consumer Electricals Eyes Premiumisation and New Categories for Growth

Crompton Greaves Consumer Electricals is expanding its total addressable market significantly. The company aims to nearly double its revenue within the next five years. New product categories like solar rooftops and water purifiers are key growth drivers. Crompton is also focusing on building its Butterfly kitchen appliances brand nationally.

## Expansion Plans The company has expanded its total addressable market size from about Rs 80,000 crore three years ago to around Rs 1.6 lakh crore, following its entry into new segments, including solar rooftops, solar pumps, wires, and water purifiers. Managing Director & CEO Promeet Ghosh said the company expects to enter only one or two new segments going forward, with the focus shifting to deepening its presence in categories it has already entered.

## Financial Performance Crompton Greaves Consumer Electricals reported a 15 per cent rise in consolidated net profit to Rs 142.7 crore and an 11.8 per cent increase in revenue from operations to Rs 2,235 crore for the June quarter. The company has sustained profitability through disciplined cost management, calibrated pricing actions, and continued investments in brand building and innovation.

## Growth Strategy The company's growth strategy is structured around three buckets - core, emerging and future categories. Its core portfolio comprises fans, pumps and lighting, while emerging businesses include kitchen appliances, geysers and air coolers. Future growth avenues include wires, rooftop solar and solar pumps. The company acquired Butterfly Gandhimathi Appliances in 2022 and is now focused on building Butterfly into a national brand over the next three to five years.

## Export Market Besides the domestic market, Crompton Greaves Consumer Electricals is also focusing on the export market. Group CFO & Head of Strategy K Arunachalam said the company is shifting its focus from a traditional export model to building a dedicated international business strategy with ambitions to expand meaningfully in overseas markets over the long term. While exports currently contribute only a low single-digit share of revenue, the company sees substantial growth potential in international markets.

The company has adopted a balanced approach while passing on a part of the cost increase to consumers and absorbing the rest through cost efficiencies to tackle the recent jump in raw material and commodity prices. Inflation remains the biggest challenge to consumption growth, particularly in urban markets, but measures such as income tax relief, GST rationalisation and higher government payouts should gradually support consumer spending and demand recovery.

| Category | Current Revenue | Projected Revenue | | --- | --- | --- | | Core | Rs 8,000 crore | Rs 15,000 crore | | Emerging | Rs 2,235 crore | Not disclosed | | Future | Not disclosed | Not disclosed |

The company is investing over Rs 100 crore annually in its innovation centre to develop smart, connected products. With its refreshed brand identity, Crompton Greaves Consumer Electricals aims to blend its long-standing legacy of trust with the evolving aspirations of younger consumers seeking smart, connected and aesthetically designed products.