Crompton Greaves gains on cost cutting measurers

Crompton Greaves is trading higher by 2% to Rs 124 after the company said it has been progressively evaluating opportunities for improving operational viability of the various businesses of CC.

“The company proposes to reduce the employee strength of its Belgium operations. Approximately 260 employees are contemplated to be covered under the right-sizing exercise, out of a total of approximately 730 employees,” the Crompton Greaves said in a filing.

The transformer market in Western Europe was facing over capacity and pricing pressure. For competitive and sustainable operations, it has decided to optimise its Belgium operations, the company said.

Meanwhile, electrical solutions provider has commenced operations of its switchgear manufacturing facility in Brazil and is eyeing a revenues of $50 million (over Rs 280 crore) in the first year of operations, the PTI report suggests.

The stock opened at Rs 122 and hit high of Rs 125 on the Bombay Stock Exchange. A combined around 150,000 shares have changed hands on the counter so far on both the exchanges.