Crompton Greaves, an Avantha Group company, has divested its entire 50 per cent stake in joint venture firm CG Lucy Switchgear Ltd to UK's W Lucy & Co for Rs 40.26 crore.
CG Lucy Switchgear Ltd is a 50-50 manufacturing joint venture between Crompton Greaves and W Lucy and Co Ltd, UK. The company, a manufacturer for ring main units (RMUs) for the Indian market, has its factories situated in Nashik.
Crompton Greaves will divest its entire investment of 6 lakh equity shares in CG Lucy Switchgear, following execution of consequent definitive agreements, the company said in a statement.
“We believe that W Lucy is the best potential owner for ensuring a long-term future for CG Lucy. Combining the CG Lucy Indian operations and Lucy Electric business will allow CG Lucy to focus on developing products specifically for the Indian market and expand its offering within the MV sector," said Crompton Greaves CEO & Managing Director Laurent Demortier.
Post the. divestment, Crompton Greaves will continue to have distributorship of RMUs in India and will also continue to supply vacuum bottles and other products to CG Lucy. The deal forms part of the company's strategy to focus on its B2B activity in the Power HV sector.