Crompton Greaves Consumer Electricals Limited (also known as Crompton) is an Indian

electrical equipment Electric(al) devices are devices that functionally rely on electric energy ( AC or DC) to drive their core parts (electric motors, transformers, lighting, rechargeable batteries, control electronics). They can be contrasted with traditional mech ...

company based in

Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

. The company has lighting and electrical consumer durables including LED lighting, fans, pumps, and household appliances like water heaters, air coolers, and kitchen appliances. As of February 2022, the company is indexed with

S&P Global S&P Global Inc. (prior to April 2016 McGraw Hill Financial, Inc., and prior to 2013 The McGraw–Hill Companies, Inc.) is an American Public company, publicly traded corporation headquartered in Manhattan, New York City. Its primary areas of busi ...

BSE Consumer Durables Index, a list of 10 top listed Indian consumer durables companies.

History

The company was established in 1937 as Crompton Parkinson Works Limited, a wholly-owned subsidiary of

Crompton Parkinson Crompton Parkinson was a British electrical manufacturing company. It was formed in 1927 by the merger of Crompton & Co. with F & A. Parkinson Ltd. The brand is now part of Brook Crompton. History Crompton & Co. was a lamp manufacturer foun ...

. In 1947, it was acquired by

Karam Chand Thapar Karam Chand Thapar (1900–1962) was the founder of the Thapar Group of companies. He was originally from Punjab. He started his career in 1920 as a coal trader in Calcutta, and built up the family fortune through Karam Chand Thapar and Bros. ...

. The company was established in 2016 as an outcome of the demerger of Crompton Greaves Limited which separated the latter's consumer goods business from the power and industrial systems segment. The demerger plan was announced in July 2014 and it was completed in 2016 with the creation of

CG Power and Industrial Solutions CG Power and Industrial Solutions Limited, previously known as Crompton Greaves Limited, is an Indian multinational company engaged in design, manufacturing, and marketing of products related to power generation, transmission, and distributio ...

and Crompton Greaves Consumer Electricals Limited. At the time of demerger,

Gautam Thapar Gautam Thapar (born 7 December 1960) is an Indian businessman who is the chairman of Avantha Group and is part of the Thapar family. Early life Gautam Thapar belongs to the third generation of the business family founded by his grandfathe ...

, the former chairman of combined Crompton Greaves Limited, sold his 34% stake in CGCEL to

Advent International Advent International is a global private equity firm focused on buyouts of companies in Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, growth and strategic restructuring in five core ...

and

Temasek Holdings Temasek Holdings (Private) Limited, or simply Temasek, is a Singaporean state holding company owned by the Government of Singapore. Incorporated on 25 June 1974, Temasek owns and manages a total of US$496.59 billion (S$671 billion) in assets u ...

for ₹2000 crore. Crompton's operation is divided into two segments: one is Electrical consumer durables (ECD) which include fans, appliances, and pumps. The other one is Lightings which includes LED and Non-LEDs products. Under the ECD, the company is considered a market leader in

fans Fan commonly refers to: * Fan (machine), a machine for producing airflow, often used for cooling ** Hand fan, an implement held and waved by hand to move air for cooling * Fan (person), short for fanatic; an enthusiast or supporter, especially wit ...

business with a 26% market share. As of September 2020, the company has manufacturing facilities at

Goa Goa () is a state on the southwestern coast of India within the Konkan region, geographically separated from the Deccan highlands by the Western Ghats. It is located between the Indian states of Maharashtra to the north and Karnataka to the ...

Vadodara Vadodara (), also known as Baroda, is the second largest city in the Indian state of Gujarat. It serves as the administrative headquarters of the Vadodara district and is situated on the banks of the Vishwamitri River, from the state capital ...

Ahmednagar Ahmednagar (), is a city located in the Ahmednagar district in the state of Maharashtra, India, about 120 km northeast of Pune and 114 km from Aurangabad. Ahmednagar takes its name from Ahmad Nizam Shah I, who founded the town in 1494 ...

and

Baddi Baddi is an industrial town and Nagar parishad in the southwestern Solan district of Himachal Pradesh, India. The town lies on the border of Himachal Pradesh and Haryana states in the Shivalik Hills, around 35 kilometres west of Solan town. ...

. And one R&D centre at

Vikhroli Vikhroli (Marathi pronunciation: Help:IPA/Marathi, �ikʰɾoɭiː is a suburb of Mumbai located on the northeastern side of the city. The suburb has a railway station by the name Vikhroli on the Central Railway (India), Central Railway line. ...

, in the suburb of Mumbai.

Controversies

In November 2017,

Reuters Reuters ( ) is a news agency owned by Thomson Reuters Corporation. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide. Reuters is one of the largest news agencies in the world. The agency was estab ...

reported instances of "prescient messages" regarding the performance of 12 Indian companies in

WhatsApp WhatsApp (also called WhatsApp Messenger) is an internationally available freeware, cross-platform, centralized instant messaging (IM) and voice-over-IP (VoIP) service owned by American company Meta Platforms (formerly Facebook). It allows us ...

groups and it included Crompton. The information contained upcoming quarterly results, including specific metrics such as net profits, revenues, and operating margins. At that time, the matter was investigated by India's

Securities and Exchange Board of India The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...

for

insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information ...

by brokers. Later, in 2021, the Securities Appellate Tribunal (SAT) set aside the SEBI's order because the latter was failed to prove insider trading connection among and between the brokers.

References

{{reflist Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange Indian companies established in 1937 Indian companies established in 2016 Electronics companies of India Consumer electronics brands Home appliance manufacturers of India Electronics companies established in 2016 2016 establishments in Maharashtra