Crompton Greaves gains on signing MoU with Government of Gujarat

Crompton Greaves made the announcement after market hours on Monday, 14 January 2013.

Meanwhile, the BSE Sensex was up 30.24 points or 0.15% to 19,936.65

On BSE, 55,603 shares were traded in the counter as against average daily volume of 3.61 lakh shares in the past one quarter.

The stock hit a high of Rs 121.35 and low of Rs 120.30 so far during the day. The stock hit a 52-week low of Rs 102.40 on 28 May 2012. The stock had hit a 52-week high of Rs 167 on 17 February 2012.

The stock outperformed the market over the past one month till 14 January 2013, rising 7.74% compared with the Sensex's 3.05% rise. The scrip had, however, underperformed the market in past one quarter, falling 12.57% as against Sensex's 6.59% rise.

The mid-cap company has equity capital of Rs 128.30 crore. Face value per share is Rs 2.

Crompton Greaves said after market hours on Monday, 14 January 2013 it has inked a Memorandum of Understanding (MoU) with the Government of Gujarat to set up a state-of- the- art Power Transformer manufacturing unit at Gujarat. The plant will manufacture power transformers and reactors upto 1200 kilovolt (kV) for both domestic and international markets.

The MoU was signed between Chief Executive Officer & Managing Director, CG, Mr. Laurent Demortier and Mr.GI Desai, Jt. Industries Commissioner, Govt. of Gujarat. This will be CG's second manufacturing facility in Gujarat the first one being its modern lighting factory, operational since 16 August 1994.

Our 550 kV, 765 kV and 1200 kV technology products will enable high level of efficiency in transmission and help bridge the vast demand-supply gap in the country's power sector. Our venture in Gujarat further strengthens our leadership position in the T&D segment to develop & deploy cost efficient products & solutions for our clients in India, SEA, Middle East, Africa, Europe, North and South America regions.

Mr Jayant Kulkarni Executive Vice President & President, Power Business said "As a global enterprise, Crompton Greaves actively supports initiatives that encourage global power generation, transmission & distribution in the electric grid systems. Furthermore we distinguish Gujarat for its conducive, stable & sustainable business enabling climate for robust industrial growth".

During trading hours on Friday, 11 January 2013, Crompton Greaves said it has entered into a definitive agreement with Himachal Pradesh-based Karma Industries to buy the latter's compact fluorescent lamp (CFL) manufacturing business. The operations, located in Baddi, Himachal Pradesh, are dedicated to manufacturing CFL products.

The approximate value of acquisition is Rs 14.5 crore. The acquisition will double the company's capacity in the fast-growing CFL lighting segment and reinforce its presence in the rapidly growing Indian consumer market, Crompton Greaves said.

Crompton Greaves' consolidated net profit fell 64% to Rs 42.05 crore on 8.1% growth in net sales to Rs 2924.17 crore in Q2 September 2012 over Q2 September 2011.

Crompton Greaves is an engineering conglomerate with diverse portfolio of products, solutions and services ranging from high-end power and industrial equipments and solutions, to consumer products and home appliances.

Crompton Greaves is a global pioneering leader in the management and application of electrical energy. With more than 15,000 employees across its operations in around 85 countries, the company provides electrical products, systems and services for utilities, power generation, industries, and consumers. The company is organized into four business groups: Power, Automation, Industrial, and Consumer.

Powered by Capital Market - Live News