INTRODUCTION OF CROMTON GREVES

Col. R.E.B. Crompton founded R.E.B. Crompton & Company in 1878. The company was
merged with F.A Parkinson in 1927 to form Crompton Parkinson Ltd. Greaves Cotton
and Company, established by James Greaves in 1859, was appointed as their
concessionaire in India.
In 1937, Crompton Parkinson established Crompton Parkinson Works Ltd. in Bombay as
a wholly-owned Indian subsidiary. In collaboration with Greaves Cotton, it also
established a sales organization, Greaves Cotton & Crompton Parkinson Ltd.Over the
years, the company has evolved into one of India's largest private sector enterprises.
After the acquisition of the Belgium-based Pauwels Trafo/Pauwels Group in May 2005,
Crompton Greaves was ranked amongst the world's top ten electrical transformer
manufacturers. The company subsequently acquired a host of companies outside India.
These include Ganz (Hungary), Microsol (Ireland), Sonomatra (France) and MSE Power
Systems (USA).
Crompton Greaves is a part of the US$ 3bn Avantha Group, and is headquartered in a
self-owned landmark building at Worli, Mumbai.
Crompton Greaves Ltd.

Type Public company BSE: 500093 NSE: CROMPGREAV

Industry Electrical
Founded 1878
Headquarters Mumbai, India
Key people Gautam Thapar, Chairman and CEO [1]
Products Transformers, HT & LT Motors, DC Motors, Railway Signaling
Revenue 5,352.74 crore (US$1.16 billion) [2]
Parent Avantha Group
Website www.cgglobal.com
STRATEGIC BUSINESS AREAS
CG has three strategic business areas

Power Systems : It includes Transformers, Switchgear, Circuit Breakers, Vacuum

Interrupters, Network Protection & Control Gear, as well as Design, Execution and
Servicing of Turnkey T&D as well as Sub-Station Projects and Solutions including
complete end to end Renewable projects. This is the largest business of CG, which is now
well and firmly established throughout the world. It is a high value, high turnover
business with a strong global footprint, and contributes to approx 70 per cent of CG‟s
consolidated revenue. Its facilities are located in different parts of Belgium, Canada,
Hungary, India, Indonesia, Ireland, France, UK and USA.

Industrial Systems : It is engaged in the business of providing solutions through the

supply of power conversion equipments of a wide spectrum of High and Low Tension
rotating machines (motors and alternators), inverters & converters, stampings, as well
as railway transportation and signaling equipments. Industrial Systems has a very strong
market presence and market leadership position in most segments in India. It also caters
to overseas markets through its facilities in Hungary and exports from India. Its product
portfolio includes motors ranging from 20W to 25MW and generators ranging from
1KVA to 70MVA; and CG is the largest manufacturer of Low Tension motors in India
offering a range of motors in various standard and customized configurations to respond
to the exacting demands of the industry
CONSUMER PRODUCTS:-One of CG‟s fastest growing businesses; CG manufactures
and markets a wide spectrum of products ranging from fans, light sources and luminaires,
pumps and household appliances, such as geysers, mixer grinders, toasters, irons and
electric lanterns. This business is the second largest SBU of CG.. It also enjoys a
substantial brand presence and goodwill in India.

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SEGMENTATION :-With an impressive global footprint Crompton

Greaves is part of the US $3 billion Avantha Group. The company has a head quarter in
Mumbai, India. Crompton Greaves is India's largest private sector enterprise in the
business of electrical engineering with a turnover in excess of Rs.1700 crores. The
Consumer Products Business Group is engaged in the business of Fans, Light Sources,
water heaters, Luminaries and Pumps. South Africa is a potential market where in
Crompton can establish itself successfully.
Market segmentation will help Crompton to know the group of customers who share a
similar set of needs and wants. Its Four main regions of commerce are Western Cape
(Cape Town), Eastern Cape(Port Elizabeth and East London), KwaZulu-Natal (Durban
and Pietermaritzburg) and Gauteng (Pretoria, the Witwatersrand, i.e. Johannesburg and
the areas to the east and west of it, and Vereeniging). The population growth rate for
South Africa is -0.501% (2008 est.) (World growth rate at 2006 is 1.14%.Crompton will
offer its most innovative and premium products to the higher income people while it may
offer its standard products to middle income group. Crompton can effectively market its
product when it understands the buying decision making process.

TARGET:-The primary target market of Crompton would be the middle

income and higher income people .The secondary market of Crompton would be the high
income industrial sector in these four main regions. Operating within these four regions
of commerce Crompton will be able to serve a huge customer base . Crompton will use
positioning as their communication tool. Crompton can reach the target customers easily
only when their brand name reaches the target customers mind.

positioning:-Crompton initially focus on maximizing their market share. This

can be done by charging a low price to the market this is also known as market
penetration pricing. Since people will evaluate Crompton products & will decide to buy it
before they go to a store therefore the pull strategy is appropriate for this company.
Crompton sell its product through one level channel containing one retailer or through a
two level channel which will contain two intermediaries.
Crompton’s advertising content emphasise on the creation of a memorable brand image
in South Africa with the help of effective product positioning. It will advertise through
two main sources radio and television.