Crompton Greaves: Debt-laden Loss-making Company to a Successful Global Company
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Case Code: BSTR379 Case Length: 25 Pages Period: 2000-2010 Pub Date: 2010 Teaching Note: Not Available |
Price: Rs.500 Organization: Crompton Greaves Ltd. Industry: Electrical Equipment and Engineering Countries: India; Global Themes: Turnaround, Restructuring, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Running into Losses
Before entering into telecommunications & industrial electronics, turnkey engineering projects, and information technology services in 1987, the company was manufacturing a wide range of transformers, switchgears, control equipment, motors and related products, railway signaling products, and consumer products...
Restructuring at Crompton Greaves
CGL opted for a restructuring. The restructuring strategy involved cost-cutting and selling unrelated businesses. To come out of the losses, CGL constituted a restructuring panel to look into the operational growth and profitability prospects for some of its businesses...
Focus - A Restructuring Concept Conceived by CGL
CGL initiated this concept to bring the company back into profits. This concept included improving productivity, cost reduction, fiscal management, and enhancing its core competence...
Change in Company's Reflection
In line with its changing face, CGL unveiled a new brand identification for the company with the logo 'CG'. To convey its focus on building relationships and relationship enhancing solutions, it reframed its brandline to read 'Smart solutions. Strong relationships.' Before this change, the company carried the tagline' Every Day Solutions'...
Looking Ahead
Analysts felt that the company had achieved a remarkable turnaround by putting in place various restructuring measures across all areas of operations. This was achieved in a very competitive market which included big players such as ABB, Areva, Siemens, and Alstom...
Exhibits
Exhibit I: Crompton Greaves's Corporate Mission, Vision, and Philosophy
Exhibit II: Companies of Avantha Group
Exhibit III: CGL and its Subsidiaries
Exhibit IV: Annual Revenues of CGL from 1994 to 2009
Exhibit V: Revenue Share of Various Business Divisions of CGL as of March 2000
Exhibit VI: Share Price Movements of CGL on National Stock Exchange (NSE)
Exhibit VII: Annual Earnings Per Share (EPS) of CGL from 1994 to 2003
Exhibit VIII: Annual Net Profit of CGL from 1994 to 2009
Exhibit IX: Annual Borrowings by CGL from 1994 to 2005
Exhibit XI: Annual Balance Sheet of CGL from March 2000 to March 2009
Exhibit XII: Annual Debt/Equity Ratio of CGL from 1994 to 2009
Exhibit XIII: Revenue-share of Power Systems Division of CGL from 2002 to 2009
Exhibit XIV: CGL's Annual Standalone and Consolidated Revenues from 2006 to 2009
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