Promoted by Pheroze B Karanjia in 1942 for the manufacture of various elements of mechanical power transmission equipment, C P E C (formerly The Communication and Power Equipment Company) has its manufacturing facility at Bombay, Thane and Taloja. In 1963, the company obtained technical knowhow from the erstwhile Crofts (Engineers), UK, for its products. Crofts is now a part of Renold, UK, which is one of the largest complex in the field of mechanical power transmission equipment manufacture. Renold, UK, holds a 26% stake in the company.
In 1983, the company undertook a new project at Taloja to manufacture additional products thereby expanding its product range. Till 1989, Voltas was the sole distributor for the company's products. Voltas and its associate held 26% stake in the company, which was divested in 1988-89, after which Voltas ceased to be a distributor.
In the later part of the eighties, the company became sick and it came under the purview of the BIFR. However, it turned around and earned a net profit in 1990-91. Consequently, it came out of the BIFR purview.
In 1994-95, the manufacturing facilities at Thane was transferred to Taloja and Lalbaug, for better productivity and cost reduction.
During the year 1998-99, the Company sold the Thane Plant for Rs. 87,50,000resulting in the Capital Profit of Rs. 64,41,790.