Electrical appliances major Crompton Greaves Consumer Electricals Ltd is hoping to close the fiscal with double-digit topline growth, even as it aims to boost brand recall amongst the younger generation.

Crompton Greaves Consumer Electricals products are now branded as ‘Crompton’.

Till April-December 2016 (the first nine months of this fiscal), the topline growth had been 12 per cent. The company reported a turnover of ₹2,900 crore and a profit after tax of ₹204 crore during this period.

According to Matthew Job, CEO, the company is expecting some impact of demonetisation in the ongoing January- March quarter (Q4 on this fiscal) and a “probable spill-over” in Q1 (April to May) of FY18. “We feel that despite demonetisation, our overall growth this fiscal is likely to be in double digits,” he said here on Monday adding that the company was targeting to grow faster than the market.

Crompton Greaves Consumer Electricals operates primarily in four verticals that include fans – where it has a leadership with 25 per cent market share; lighting; pumps (it has another 25 per cent market share in residential pumps category and a 7-8 per cent in agricultural pumps); and small appliances. Fans contribute close to 40 per cent of its turnover and lighting forms another 30 per cent. Pumps and small appliances account for 20 per cent and 10 per cent, respectively.

Targeting youngsters

According to Job, the new management has decided to invest around 2-3 per cent of the turnover towards brand building and is looking to reach out to the younger generation.

The company, he maintained, had high recall value amongst the older generation compared to the youth. Hence, a conscious decision has been taken on the branding front.

“In the past, the company did not invest in the brand. Now we are targeting nearly 2-3 per cent of our turnover towards marketing spends and in building the brand,” he said adding that Crompton was also in the process of getting a five-year blueprint ready.”

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