Crompton Greaves Consumer Electricals Ltd, a leading fast-moving electrical goods and consumer appliances company, is targeting to build its solar pumps and rooftop solar solutions business into a ₹2,000-crore vertical over the next three to four years while accelerating the pan-India expansion of Butterfly kitchen appliances.
The company entered the solar rooftop and residential wires segments in the fourth quarter. Its wires business has initially been launched in southern States and will be expanded nationally in phases by leveraging Crompton’s dealer network and distribution reach.
Solar rooftop order book grows
Managing Director & CEO Promeet Ghosh said during analysts call that rooftop solar systems have already been installed in more than 5,000 homes, including 2,500 homes in Andhra Pradesh and several installations in Telangana.
“We have an order book to the magnitude of about ₹500 crore for solar rooftops. Solar pumps have grown by leaps and bound from ₹20 crore to ₹200 crore,” he said.
Butterfly expansion gathers pace
The company, which acquired Butterfly Gandhimathi Appliances Ltd in 2022, reported strong double-digit growth in revenue and profits.
“Kitchen has been a key area of focus for Crompton. We spent a lot of time and effort in turning around the Butterfly business, bringing it to an even keel and now it’s been taking off in the last several quarters,” Ghosh said.
He added that Butterfly is now cash positive with about ₹170 crore and continues to report robust growth, profitability and cash flows.
Focus on pan-India rollout
According to him, the write-down in Butterfly valuation has no impact on any future merger plans between the two companies.
Crompton said the next phase of growth would focus on expanding Butterfly’s presence across North, East and West India by leveraging Crompton’s service and distribution network.
The company also reported nearly 30% growth in small domestic appliances, while large domestic appliances registered double-digit growth in water heaters along with market share gains in water heaters and air coolers.
Margins remain under pressure
Despite inflationary pressures, the company said it remains focused on protecting profitability through calibrated price hikes, premiumisation, cost optimisation initiatives and operating leverage benefits.