Outcome of board meeting of Crompton Greaves

Held on 16 October 2014

Crompton Greaves announced that the Board of Directors of the Company at its meeting held on 16 October 2014, has transacted the following:

1. Scheme of demerger of Consumer BU:

The Scheme of demerger of the Consumer Products Business Unit of the Company into CG's wholly owned subsidiary Crompton Consumer Products Limited was approved by the Board. The Scheme will come into effect from the Appointed Date 01 April 2015, subject to receipt of all Regulatory approvals.

2. Enhancement of FII/FPI limits

The Board approved an increase in the Investment limit for Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) upto 100% of the paid-up equity share capital of the Company pursuant to the provisions of Foreign Exchange Management Act, 1999, and the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000.

The FII shareholding in CG is approx 15.93% of paid-up capital as on September 30, 2014; the enabling approval will create space for additional FII/FPI investment, enhancing price discovery and liquidity of the Company's stock.

The Company would be seeking consent of the shareholders for the aforesaid matter by Postal Ballot in terms of the applicable provisions of the Companies Act and Rules made thereunder.

3. Sale of land

As part of its continuous asset optimisation initiatives, the Board of Directors of the Company has approved entering into a definitive agreement for sale of a portion of its land parcel at Kanjurmarg, admeasuring approx 8 acres to Evie Real Estate for an aggregate sum of Rs. 302.26 crore.

4. VRS - Stampings Division

As a continuous improvement measure, critical Stamping operations of the Kanjur Marg, Mumbai Stampings Division are being transferred to our state-of-the-art Stampings facility at Ahmednagar. The transition will positively impact the production of motors and generators for the Company as the Ahmednagar factory is fully equipped to handle enhanced operations. The transition will be operationally effective from 31 October 2014. In this connection, the Company has implemented a voluntary retirement scheme for all unionized employees of Stampings Division based at Kanjur Marg, Mumbai.

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