Crompton Greaves - Targets Pan-India Leadership In Kitchen Appliances: Systematix

Crompton Greaves Consumer - Targets Pan-India Leadership In Kitchen Appliances: Systematix

<div class="paragraphs"><p>Hobs by Crompton Greaves Consumer Elelctricals Ltd. (Source: Company website)</p></div>
Hobs by Crompton Greaves Consumer Elelctricals Ltd. (Source: Company website)

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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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Systematix Crompton Greaves Consumer - Company Update.pdf


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