Crompton Greaves - Targets Pan-India Leadership In Kitchen Appliances: Systematix
Crompton Greaves Consumer - Targets Pan-India Leadership In Kitchen Appliances: Systematix
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Systematix Research Report
Strong distribution reach and a lean cost structure are reasons why Crompton Greaves Consumer Electricals Ltd. has gained market share in key categories (fans, pumps, lighting, geysers, etc.) and maintained a superior margin profile.
By acquiring South India-based company Butterfly Gandhimathi Appliances Ltd., Crompton Greaves is targeting pan-India leadership as a kitchen appliance brand through a 15-20% share in the Rs 100 billion addressable market (holds the top three position in mixer grinders, pressure cookers and gas stoves).
Our estimate of 25%/26%/15% compound annual growth rate in revenue/Ebitda/profit after tax over FY22-24E (7%/10%/16% over FY18-22, respectively), with 14.4% Ebitda margin and ~24% return on equity, is largely driven by the Butterfly acquisition.
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