CROMPTON GREAVES LIMITED, a company lead by the AVANTHA GROUP is a pioneering leader in the management and application of electrical energy, with the presence in over 10 countries. CG is active in the global power transmission and distribution (T&D) arena and is amongst the world’s top ten transformer manufacturers.

The company is organized into three business groups, viz., power systems, industrial systems, and consumer products. CG had acquired Himachal Pradesh-based Karma Industries’ compact fluorescent lamp (CFL) manufacturing business for 145 million.

Crompton Greaves had acquired Himachal Pradesh-based Karma Industries’ compact fluorescent lamp manufacturing business

In the consumer products segment the company has been accredited with the Superbrand Status for fans and lighting brands. It has the largest number of 5-Star energy efficient rated products in this segment in India, certified by Bureau of Energy Efficiency, a Government of India agency. It is the largest manufacturer of fans in India, with offerings for all sections of the market and various applications – domestic or industrial. Although predominantly India-centric, CG is a leading fan exporter to countries like the US, Italy, South Africa, Ghana, Fiji, Singapore, Bahrain, UAE, Sri Lanka, UK, France, Oman, Sudan, to mention a few . The Boston Consulting Group has, for the third time, included CG in its list of 100 New Global Challengers, which are the rising stars from rapidly developing economies and are reshaping global industries. CG was also awarded ‘Annual Intellectual Property Award 2010-11’ for securing the highest number of design registrations during the last five years. The annual survey of India’s Most Valuable Brands by Brand Finance, in partnership with The Economic Times, placed CG as the 34th Most Valued Corporate Brand in India, with a brand value calculated at US$541 million.


Founded in 1992, Karma Industries is engaged in manufacturing lighting products such as spiral compact fluorescent lamps, two-tube and three-tube compact fluorescent lamps. The manufacturing facility of the company is located at the Baddi in the Himachal Pradesh.


A compact fluorescent lamp (CFL), also called energy-saving light, is a fluorescent lamp designed to replace an incandescent lamp.

Compared to general-service incandescent lamps giving the same amount of visible light, CFLs use one-fifth to one-third the electric power, and last eight to fifteen times longer. A CFL has a higher purchase price than an incandescent lamp but can save over five times its purchase price in electricity costs over the lamp’s lifetime. Like all fluorescent lamps, CFLs contain mercury, which complicates their disposal.

The advantages of the CFL over the incandescent lamp are much higher, so the consumer is moving towards the CFL.  And the growth of the market is the estimated to be 12%.


  1.   Double the capacity in fast-growing CFL lighting market.
  2.   They can manufacture 2 million lamps per month, not only providing them with immediate capacities but also    allowing them to offer a complete range of CFL lamps.
  3.   The state-of-the-art facility.
  4.   Manufacturing plant spread across 4500 square meter and employees around 50 people.

The above addition will help the company to serve better  their customers and channel partners with high-quality products.


In this space, Halonix acquired International Lamps Holding Co. SA, Luxembourg for an undisclosed amount. Halonix is counted amongst the most preferred manufacturers and suppliers of compact fluorescent lamps for general lighting and halogen lamps for automotive. Varroc Engineering acquired US-based Visteon Corporation’s lighting business for $72Mn in cash and also acquired 80% stake in Italy-based two-wheeler headlights and tail lights maker Triom SPA.

Through this deal, the company has added the immediate state of the art production capacity which will enable the company to serve better its customers. And the payback period from the estimated figure appear to be 1year, considering the installed capacity is fully utilized, and cash operating profit is the same of as the consumer product segment.


The consumer product is the second largest segment of the Crompton greaves. The net sale contribution by this segment is much lower in comparison to the first segment, but the contribution to EBITDA by this segment is much higher. The Net asset for the segment is much low with compare to other segments and the consumer product segment has a good return on its assets employed.  


The acquisition will also help the company, to utilize the other benefit of the plant set up in the Himachal Pradesh, in word tax incentives and other formalities. This addition will further help the company to demonstrate the vision —We put all our energy into saving yours” and also move towards the top position in energy-saving light source products. Since the growth rate of consumer goods segment looks to be attractive, the CG can stand for CONSUMER GOODS in the case of Crompton greaves.