CG's power systems business had been a laggard in 1999-2000 accounting for almost 70 per cent of the losses during the period. Plans are also afoot to extend CG's Internet and intranet activities (falling under the digital business group) to areas like finance, banking and insurance.

CG's managing director, SM Trehan, told The Financial Express that internal cost-cutting measures and concentration of production at the more cost-effective plants are among the measures under implementation. "The Mumbai-based plants are the oldest and consequently the employee age and wages are higher. Compared with the other units, older plants like these are high cost ones. We would like to make these high-cost islands cost-effective by pruning manpower and other costs. However, if after such efforts, the management still fails to make them productive, we will examine other options, but only if the need arises," he said.

Trehan said that the company has already initiated steps to reduce material cost by 5 per cent to 6 per cent, check finance costs and enhance employee productivity by 2 per cent to 3 per cent. "We have faced payment problems with some our customers like the state electricity boards (SEBs). We are now looking at servicing only those orders that come from customers who are in good financial health". Other measures include a renewed focus on the export markets of the Far East, which are now on the recovery path.

He also said the criteria for determining whether or not to retain/divest a business would broadly depend on whether it is "core and increases the value proposition" for CG. On whether CG would review loss-making joint ventures like CG Elin Power Systems (with a loss of Rs 1.61 crore in 1998-99), CG Brook Hansen Electric Motors (loss of Rs 2.32 crore), CG Schlumberger Electricity Management (loss of Rs 3.43 crore), he said, "Losses are not the only criteria for divesting a business. But few of them may be up for review based on the criteria set".

Crompton Greaves, which has deferred plans to trifurcate the company, has set up a five-member committee to review its operation, while a consulting firm will assist with the revamp exercise.

Meanwhile, Trehan expects turnover from the company's digital business to grow to Rs 300 crore in 2000-2001 (from Rs 200 crore currently), with new businesses accounting for sales of Rs 50 crore. While CG has implemented an order to set up a national Internet backbone, new products to be added include optic fibre transmission systems and copper HSDL products.

Firm to spin off portal
Crompton Greaves plans to spin off its portal, indiawomanpower.com, into a separate, 100 per cent-owned entity. The portal is currently styled as a division of the company. CG's chief (indiawomanpower project) Asis Dasgupta said that once a separate entity is set up, the company may examine the option of roping in a partner. The new entity is expected to have a distinct board as well. The portal also plans to sign up with an American software company to offer e-health record tools free of cost to its customers.

Indiawomanpower.com, which recently touched the magic figure of one million hits, already has over 3,000 registered users. The portal offers a host of services like online education, part-time jobs etc., aimed at empowering the Indian woman.