Product details

Crompton Graves Limited (CGL) is an Indian multinational company that is focused on providing state-of-the-art electrical engineering and infrastructure solutions for its B2B clients and world - class consumer appliances for the B2C market. The case highlights how Crompton Greaves Limited, demerged its consumer electrical segment into a separate entity (Crompton Greaves Consumer Electrical Limited) to unlock higher value for its shareholders. This also simplified the organizational structure and gives the investor more opportunities to invest in the company based on his risk appetite. The domestic demand in the Indian economy has seen a substantial growth in the consumer segment making it beneficial to operate independently as a separate entity through spin off.