Electrical appliances major, Crompton Greaves Consumer Electricals Ltd (CGCEL) today said it was aiming for a double digit growth in the current FY17′ fiscal. “There will be some impact due to demonetisation in Q4 (March 2017) quarter and may be spill-over to Q1 of next fiscal of FY18′ also,” company CEO Mathew Job said. “There is a lag for the impact to be felt by company. Till, April-December 2017, the growth had been 12 per cent. But, despite demonetisation impact our overall growth for the year will be double digit,” he said. In 2015-16, the company had achieved a turnover of Rs 3588 crore.
The company under the new management had decided to invest 2-3 per cent of the revenue for the next 3-5 years in brand building for a better reach out to the young generation. “In the past company did not invested in brand. Brand recall among young generation is low,” Job said.
Crompton was also preparing a five-year blueprint for it’s long term vision. “We are preparing a five year plan and the same had been delayed due to GST. Now, we are working on it and it will take some time before we can know about capex roadmap,” Job said.
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Crompton has four categories of business, with leadership in fans, it contribute 40 per cent of the revenue. While, lighting generate 30 per cent followed by pumps with 20-25 per cent of total sales. “Small appliances contribute 10 per cent of our revenue. But, we are a small player in the industry but in the next 3-4 year we want 10 per cent market share,” Job said.
Asked whether, the company was in a lookout for acquisition, Job said we are open to it but currently, there is nothing on cards.