INVESTORS' PRESENTATION -- Demerger and Way forward

CG Investor Presentation v17.pptx 1

Draft—for discussion only

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Management presentation DEMERGER AND THE WAY FORWARD

© CG. Confiden+al. All rights reserved 2 �

Disclaimer!

Certain statements in this Investors’ Forum concerning our future growth prospects are forward-‐looking statements,

which involve a number of risks and uncertain+es that could cause actual results to differ materially from those in such

forward-‐looking statements. The risks and uncertain+es rela+ng to these statements include, but are not limited to, global

economic condi+ons, the economic condi+ons of the regions, loca+ons and industries that are major markets for

Crompton Greaves Limited (“CGL”), risks and uncertain+es regarding fluctua+ons in earnings, our ability to manage

growth, intense compe++on in sectors where we operate including those factors which may affect our cost advantage,

wage increases in India and worldwide, trends in raw material prices, market acceptance of new products and services,

changes in governmental regula+ons and costs associated with compliance ac+vi+es, withdrawal of governmental fiscal

incen+ves, poli+cal instability and regional / loca+onal conflicts, legal restric+ons on raising capital or acquiring companies

within and outside India, and unauthorized use of our intellectual property, interest rates, fluctua+ons in currency

exchange rates and general economic condi+ons affec+ng our industry.

CGL may, from +me to +me, make addi+onal wriRen and oral forward-‐looking statements, including statements

contained in the company's filings with the Stock Exchanges and Securi+es and Exchange Board of India and our reports to

shareholders. The company does not intend or undertake to update any forward-‐looking statements that may be made

from +me to +me by or on behalf of the company.

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Agenda

CG at a glance

Rationale and plan for demerger

Way forward

Crompton Greaves Ltd (“CGL”)

Crompton Greaves Consumer Products Ltd (“CGCPL”)

Q&A

3

4

CG today: Two different businesses under the same umbrella

Customer

Regions(1)

Channels

Key success factors

Engineering and infrastructure

•  Technology •  Cost leadership

Domestic electrical appliances

•  Brand •  Products •  Marketing

•  Direct •  Multichannel

EMEA 35%

India 35%

SE Asia 12%

Americas 18%

100%

Two strong businesses

(1): Revenue split by geography for FY14.

4

5

Agenda

CG at a glance


Way forward



Q&A

5

6

Right time for the demerger

Market conditions Why are we ready?

•  Consumer demand revival

•  Increasing preference for brands, faster product cycles, larger premium segment

•  Consumer business has reached the right size to operate independently

•  Crompton is a brand ready to be leveraged for acceleration

Two potential leaders

•  Demand revival for energy efficient and smart grid infrastructure

•  Market moving towards consolidation

•  Integration of acquisitions completed and synergies captured

•  CGL has reached the critical mass to establish global position

CGL

CGCPL

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7

Benefits of the de-merger are substantial

Strong potential to create value

Strategic Operational Financial

•  Agile and focussed strategies

•  Compete with distinct competitors in channels and products

•  Potential to tie up with global partners

•  Specialized board and management

•  Simplified organization structures

•  Customised infrastructure and processes

•  Unlock shareholder value

•  Cost and cash cycle optimization

•  Focused investor opportunities

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8

Two entities going forward

FY 2014 revenue mix

CGL CGCPL

Revenue growth

•  FY 2011 to FY 2014 growth: 9% •  FY 2011 to FY 2014 growth: 12%

Key product segments

Key customer segments

•  Power T&D •  Power conversion – motors,

generators and drives •  Automation solutions

•  Air circulation •  Lighting •  Consumer water products •  Home and kitchen appliances

•  Power and utilities •  Railways •  Oil and gas •  Mines and minerals

•  Households •  Commercial •  Institutions

Services Systems

Products

Appliances

Pumps

Light

Fans

SE Asia

Americas India

EMEA

Focused and agile businesses 8

9

Demerger structure and shareholding

Indicative timing

Brand arrangement

•  Trademark “Crompton Greaves” to be assigned to CGCPL •  CG logo shall continue to be used and developed by CGL

•  October 2014 – August 2015: requisite filings approval from stock exchanges, shareholders, creditors and high court

•  Q4 CY2015 – proposed listing of CGCPL

43% 32%

25% plus one share

57% 43%

Industrial Power Systems

Public Promoters Public

CGL CGCPL

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Agenda

CG at a glance


Way forward



Q&A

10



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CGL has been on a transformational journey

Increased revenue

Improved presence in key markets

•  Indian Play •  International expansion with distributed field force

•  Regional focus with Strong focus on EMEA

Widened product portfolio

and improved technology

•  Largely electrical products (EHV range)

•  Expanded electrical range to UHV (765kV)

•  Introduced range of motors and traction electronics

•  Best in class electrical and electronic range, expanded to 1200 kV

•  Introduced drives and automation

•  Strong systems offering and growing services business on large installed base

Increased customer access

•  Largely India based utilities •  Started making inroads in select industries

•  Approved in several global utility and industrial players

2011 2014 Acquisition Consolidation Build

3.2 8.0 10.5

2005

<500 <2K >5K

Source: CGL internal data. Revenue – INR '000Cr # of customers

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13

We have invested in moving up to high-end plays

Electrical Products – Key segments and CGL presence Acquisitions

(1) Investments from 2005–2014 on acquisitions – Exchange rate assumption – INR 65 / Euro. (2) Investments from 2011–2015.

2,500 Cr(1)

Manufacturing

Technology

1,000 Cr(2)

•  T&D: UHV research center (1600 KV)

•  Power conversion: BCC manufacturing in India, LRM plant in Bhopal

•  Automation: Smart Grid lab (Spain), plant in Bangalore

•  1200KV PT, IT, LA

•  245KV GIS, SLIM® / BIO SLIM®

•  IE2 / IE3 motors, IP21 drives, Global design center

•  AMI (Smart Meter), DAS, SAS

400 Cr(2)

No.

of c

ompe

titor

s

Low

CGL in 2011

Only Niche LVRM play in this segment

CGL in 2014

High

Large ticket size

Low ticket size

High-end •  Ultra high voltage •  Large ratings •  Value-added solutions •  Turnkey play

Mid-end •  Mid to High Voltage •  Medium ratings •  Product Play

Low-end •  Low Voltage •  Non-Industrial

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Today, we are a significant player across segments

Power – T&D

Technology

Geography

•  100th UHV transformer to PGCIL in 2014

•  First Indian indigenous maker of 800 kV circuit breakers

•  Focus on EMEA and India •  50% of Europe’s offshore

wind farms use CG transformers

Power Conversion

•  State-of-the-art large motor manufacturing facility

•  Executed 10 MW (4-pole) large motor

•  Focus on EMEA and India where we are large OEMs and leading end-users

Automation Solutions

•  >20 AMI projects / pilots globally

•  First Smart Grid facility in India

•  Among top six esteemed suppliers for Linky, France

•  Extensive presence in Europe and India

Offering •  ~100,000 MVA power

transformer capacity globally (majorly in BCC)

•  No.1 rotating machines player in India

•  Full range of IE2 motors, IE3 launch by FY 2015

•  1.5 Mn p.a. smart meters capacity

•  Transmission and distribution solutions

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These investments have helped grow the business we have in the more attractive market segments

5,739 5,675 6,131

1,678 1,054

1,599 2,442 3,304

INR Cr.

FY 13-14

10,294

860

FY 12-13

9,171

FY 11-12

9,015

~7%

CGL Revenue & drivers – (March 2012 – March 2014)

•  22% growth in high-end UHV play •  28% growth in high margin India exports3 •  ~690 Cr automation segment created •  97% growth in high margin services •  31% growth in profitable EMEA systems •  18% growth in Railways vertical

•  >50% de-growth in low margins 400kV segment

•  10% reduction in share of low profitable US & India Systems1

Source: CG internal data; Annual reports. 1. Change from FY 12-13 to FY 13-14. 2. From the board presentation (may include IDT). 3. Only includes Power BU exports.

+44%

(28%)

6.8%

CAGR

Base business Unattractive segments Attractive segments

H1 FY 15 ~ INR 5,363 Cr2

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Slowdown phase

Up- tick

Market has been challenging but is in a phase of transition

Markets declined but expected to revive… Margin(4) dip tough but stabilizing

Margins(4) Global Power T&D Capex ($ bn)(1)

Global Nominal GFI $ '000 bn(3)

Margin pressure easing out, uptick continues in H1 FY 2014–2015

India and EMEA to account for 45%–50% of T&D capex in

future(2)

India and EMEA to account for

30%–35% of GFI(3)

205 262 234 284

369

2005 2008 2011 2014 2018

10 13 15 17

22

2005 2008 2011 2014 2018

+6.8% +1.4% +8.5%

+7.0% +4.1% +11.3%

-10

0

10

20

TBEA

ABB(5)

Hyosung

CG

Siemens(7)

Alstom(6)

FY 13–14

FY 11–12

FY 09–10

FY 07–08

Source: Economist Intelligence Unit, CG Update Nomura Analyst report (Dec'13), Analyst Reports / Declaration, World Energy Investment Outlook 2014, GBI Research 2012 (1) GBI Research 2012; (2) World energy outlook 2014. (3) GFI – Total business spending on fixed assets, such as factories, machinery, equipment, dwellings, and inventories of raw materials. (4) Margins – OI + D&A 5. ABB Power Products & Power Systems margins considered. (6) Alstom Grid data available only for last 4 years; Segment created only then. (7) Siemens Power Transmission EBIT considered (Nomura Analyst Report).

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6.2

2.2

2.3

3.6

4.9

0

5

10

EBITDA (%)

-2.9

Ongoing Improv ements (BTP)1

Recurrent benefits from one-time costs

1.9

Ongoing Improv ements (BTP)1

EBITDA FY 11-12

Mkt. Pricing Pressure

One-time costs

EBITDA FY 13-14

EBITDA FY 12-13

Mkt. Pricing Pressure

-3.0

-3.5

•  1.2% in restructuring & COPQ cost4

•  1.8% market access cost2

•  0.8% by reduction in employee costs •  0.3% improvement due to increased India

exports, UHV play & Automation •  1.2% reduction in process cost3

Consolidated EBITDA bridge (March '12 – March '14)

Source: CGL internal data; Annual Reports; Internal pricing estimates. 1. Improvements after adjusting for price decline & includes material cost reduction due to market scenario. Also netted off for process cost increase in FY 13. 2. Market access cost is the increase in employee cost due to front-end and back-end investments. 3. Process Cost improvement significant in international operations; 4. Additional 120 Cr below the line.

Recurrent benefit due to one-time costs

Part of the FY 12-13 EBITDA decline due to one-time costs, improvements visible in FY 13-14

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Key themes – Power / Industrials

Recovery in international

markets

India capex spends

improving

Robust industrial demand

•  Revival in domestic industrial capex cycle with new government initiatives •  Stricter regulations for energy efficiency to drive robust growth in demand for

energy efficient motors •  Product offering to railways expected to witness better demand going forward

with pending deliveries being cleared

•  India recovery delayed but expected to deliver strong growth in T&D and Power Conversion in the longer term

•  Conducive macroeconomic environment and policies to drive further power capacity addition in the country

•  Increased spends expected in the high end T&D space to meet the higher demand requirements

•  Automation / smart grid solutions are becoming increasing relevant

•  India and EMEA to account for 45%–50% of T&D capex in future(1)

•  Automation orders driven by increasing investments in smart grids •  Margin recovery from higher margin automation orders as compared to

power transformers •  Complete and customized offerings including EPC to create strong

competitive advantage

(1) World energy outlook 2014.

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3 scenarios exist for CGL's future direction

•  Global sales focus

•  New segment entry using partnerships

•  Acquisitions for technology & customer access

"Expansive Play" Partner to enter new

segments

•  Continue to play across regions – India, EMEA, SEAP & NAM

•  Supply from local factories

•  Technology adds relevant to region

"Multi-local" In-country supply

chain

•  Build front end sales focus in EMEA and India

•  Add footprint in BCC to serve these markets

•  Continue to invest in technology

"Focus: EMEA+ India" Optimized sales & mfg

footprint

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"Focus: EMEA+ India" is best suited for CGL at this point

• Short term growth with high long term unpredictability

Sustain- ability

"Expansive Play" Partner to enter new

segments

"Multi-local" In-country supply

chain

"Focus: EMEA+ India" Optimized sales & mfg

footprint

Economics

Risks

• Moderate margins with continued investment

• Loss of cost competitiveness

• Sustainable position in key growth markets (EMEA, India)

•  Investments required to continue to move up the value chain

• Market recovery & investments

• Competitive response

• Broad based presence with sustained investment

• Partner will share in the value created over the next few years

• Finding the right partner

•  Integration of the key technologies

?

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Offering Footprint Manufacturing and Cost Excellence

•  Acquire technology for High-end products in T&D and power conversion

•  Value-added automation solutions

•  Systems play in Europe and SEA

•  Services play $10bn installed base

•  Geographical focus (EMEA, India)

•  Vertical specialization (power, railway, oil and gas) and key account management

•  India Hub for manufacturing

•  Best cost country sourcing

•  Lean operating model

•  Vendor Rationalization and Centralized Procurement

1 2 3

"Focus: EMEA+ India" is based on three pillars

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CGL has developed a strong offering of high-end and competitive products with different routes to market

Automation(1) T&D Power Conversion

•  Strong INR 700 Cr.(2) revenue

•  Good ~8%–10% EBITDA(3)

•  Market growing at a strong rate of 15%

UHV revenue (INR Cr.) LVRM – IE2 / IE3 motors introduced •  4%–6% margin benefits

LRM – Entered > 3 MW •  Success in 6MW bid

Exports Systems Service

•  Exports share in India production increased to 26% in H1 FY 2015

•  ~INR 110 Cr. negative working capital

•  ~INR 30–35 Cr. cash inflow from operations

•  Growing strongly in services driven by installed base

•  $10bn installed base in EMEA

•  Automation Solutions

•  UHV transformers •  High voltage SG

and motors

High-end products

Enhancing route to market

•  Business models •  Margin

improvements

EMEA UEOB (€ Mn) Service Revenue – INR Cr.(2) Export Revenue(3) (INR Cr.)

289 430

FY 11–12

FY 13–14

22%

115 153

FY 11–12

FY 13–14

15%

44 171

FY 11–12

FY 13–14

97% 496 808

FY 11–12

FY 13–14

28%

Source: CG internal data. (1) ZIV acquisition made in FY 11–12. (2) Figures for FY 13–14; Last 3 years average. (3) Only Power BU exports considered.

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Focus on EMEA + India will translate to a different footprint over the next few years

FY 2004–2005

Supply model towards cost

competitive Asia

Diversified customer base with focus on

EMEA and India

FY 2013–2014 Target

10.0

90.0

21.0

79.0

50.0 50.0

90.0

10.0

35.0

12.0 35.0

18.0 35.0

15.0

40.0

10.0

Exports

Asia In-country

Exports

Asia In-country Exports

Asia In-country

EMEA

India SEA

NAM

EMEA

India India

NAM

SEA

EMEA

%

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In summary: Our strategy combines capabilities of BCC and front end acceptance in European markets

European players CG strategy Low cost country players

•  Best in class technology and quality

•  Wide geo-footprint

•  Strong service focus and installed base

•  Leverage technology and installed base from EU acquisitions

•  Front-end focus in EMEA and India with on ground presence

•  Relatively behind on technology

•  Low service focus and low installed base as entry in last 10 years

•  Poor quality perception

•  Relatively high cost supply base

•  Cost competitive supply base in India

•  Invested in building R&D capabilities in India

•  Low cost manufacturing units

•  Low cost and flexible R&D setups

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5 key segments for CGL to focus on ...

Power

Industrials

Annual Report Segments

Power Products T&D

Power Systems & Services

Automation & Smart Grid solutions

Power Conversion

Transport & Defence

Key segments

Transformer & switchgears offerings

Full T&D system implementation and service of installed base Value added solutions for substation & distribution automation

Motors & drive offerings for power conversion to industrial business

Dedicated vertical focused offerings including products above as others e.g. Rail Signalling

Brief Description

1. Excluding Electric Transportation revenue Note: Doesn't includes Jalgaon

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We have a very senior management team with significant relevant experience

•  CEO-MD since Jun-2011 •  Over 25 years of

experience and has worked with Alstom, Honeywell, etc.

•  Leads Global Finance (incl. M&A)

•  A part of Avantha Group for last 12 years

•  Over three decades of global experience

•  Deep management experience in design and marketing projects

•  Ex-CEO and President of ZIV (which he founded 20 years ago)

•  27+ years of experience working with Essar steel, Vedanta Resources, JP Industries, etc.

•  19+ years of R&D experience

•  Worked with ABB, Bombardier, etc. and is a owner of 15 patents and multiple publications

•  34 years of experience in the industry

•  Actively involved in CII, IEEMA, ERDA

•  Extensive experience in HR best practices globally

•  Previously Tata Motors CV Business HR Head

Laurent Demortier

CEO and MD

Madhav Acharya CFO & CIO

J. G. Kulkarni President, Power BU

Ravi Rajagopal EVP Legal,

Secretariat & Risk

Anil Raina President,

Industrial BU

Noberto Santiago President,

Automation

Sanjay Singh Global Head - HR

Srinivas Ponnaluri

CTO

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Top 3 domestic small consumer durables player in India

FY14 revenue of ~INR 2,900 Cr with EBITDA of 12.3%

Highest growth in revenues & highest ROCE compared to peers

16% 195%

14% 51%

13% 82%

Revenue Growth FY 12–14 (%) ROCE FY 14 (%)

Crompton

Crompton has the highest ROCE due to market leadership in air circulation and residential pumps

and a tight, largely outsourced model (~60% sourced through vendors)

Source: CG internal data, Analyst reports (Ambit report dated September 2014).

+16 %

Revenue & EBITDA Margin (%) INR Cr.

Revenues (Cr) EBITDA (%)

2,134

2,593 2,847

1,604

12.70% 11.10%

12.30% 12.34%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

1800%

2000%

0

500

1000

1500

2000

2500

3000

EBIT in FY'15 H1

FY’12 FY’15 H1 FY’14 FY’13

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We have a strong brand with the promise of quality and reliability reflecting in each of our product offering

Source: CG internal data

Quality Reliability

Durability Trustworthy "Crompton products are good, sturdy"

"Good brand with trusted quality" "Crompton is an old and trusted brand"

"Crompton delivers what it promises..." "Crompton is like a father figure - stable, reliable and responsible"

"Crompton taught everyone how to make good fans" "Quality of Crompton's LED is good, and price is better than Philips, so good positioned"

Crompton

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Home & Kitchen appliances

Our brand resonates well among consumers for each of our product segments

Our core brand promise

Quality

Why consumers purchase Crompton products?

High speed air circulation & trouble-free

Air circulation Lighting Consumer Water

Products

Recommended by a trusted source

High brightness, low power

consumption, good technology

Retailer recommendation

Good after-sales service

Low replacement cycle

Durability

Reliability

Trustworthy

Long Life

Higher star rating in water heaters

BIS mark Multi-purpose use

High warranty

Peer recommendation

Low maintenance Low maintenance Good after-sales

service

Crompton brand equity

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Strong performance across all product segments

Source: CG internal data, Analyst reports (Ambit report dated Sep'14).

Revenue (FY 12–14) (INR Cr.)

Market position and

market share (%)

Our positioning vs. closest competitor

•  No.1 position with

26% market share, very strong hold in ceiling fans

•  CGCPL: Wide product portfolio

•  Closest competitor: Leadership only in premium segment

•  Top 3 position; 14%

market share in conventional lighting; strong position in LED

•  CGCPL: Value offering with mid-range pricing

•  Closest competitor: Strong brand and awareness

•  No.1 position in

domestic pumps, top 4 in water heaters, 10% market share

•  CGCPL: Superior

domestic portfolio with excellent service

•  Closest competitor: Distant No.2 in domestic

•  Relatively newer entrant

in kitchen appliances; new segments to be launched

•  CGCPL: Value offering

across price segments

•  Closest competitor: Strong presence in kitchen and home

20% 13%

552 665

10%

60 63

2%

Air circulation Lighting Consumer water products

Home and kitchen appliances

685 879 837 1,201

FY 14 FY 12 FY 14 FY 12 FY 14 FY 12 FY 14 FY 12

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Indian consumer spend is set to increase rapidly in core categories

Overall Indian consumer spend ($bn) to grow by 3.6x... ... leading to market expansion in all our core categories

Market size (INR Cr.) Housing and consumer durable spend to increase 4x •  From $186bn in 2010 to $752bn in 2020

Driven by growth in all key indicators:

Note: All spends in nominal dollars. Years represented as calendar year. (1) Nielsen Global Consumer Confidence Survey, Q2 2014. Source: Euromonitor, NSSO; BCG Indian Consumer Survey December 2010, N=6278.

Income growth ~3 times increase in average household income

Consumer confidence

Urbanization

Nuclearization

Growing work force

40% population will live in urban cities in 2020 (31% in 2010)

180 m nuclear households growing at 4% vs. 2% population growth

137 m people will be added to the workforce by 2020 (total :752 m)

India ranks No.1 in Global Consumer Confidence survey(1)

CAGR (%)

10%

12%

12%

10,325 11,580 12,990 14,580

6,222 6,915

7,724 8,661 5,963

6,481

7,128

7,866

4,558

5,188

5,864

6,576

FY 2015 FY 2016 FY 2017 FY 2018

Lighting

Air circulation

Water products

Home and kitchen appliances

13%

37,683

27,068

30,164

33,706

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Key themes – India consumer

Consumer expenditure story intact

“Rural” the new focus

Changing consumer

preferences

Brand and distribution –

Drivers for value creation

•  Huge untapped opportunity with rural having large share of many categories •  Most of the consumption is still un-branded / local brands •  Power quality and brand consciousness continuously improving

•  Macroeconomic recovery in urban discretionary demand in India •  Rural household electrification to drive further growth in domestic

electrical products

•  Shift from unorganized to organized and unbranded to branded •  Premiumization trend to accelerate, especially in the metros / Tier I cities

•  Brand and distribution penetration key drivers for sustainable competitive advantage

•  Advertising critical for driving customer aspiration and brand positioning •  Distributor loyalty for on-the-ground push

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Demerger opens new avenues for Crompton

Follow the market "As-is"

Lead the market "Transform"

Enter new markets "Full consumer play"

•  Retain share in strong market

•  Mid-market positioning; limited portfolio expansion

•  Build a strong brand with focus on NPD

•  Enter adjacent markets by leveraging sourcing partners

•  Play in a wide range of attractive consumer markets

•  Enter into partnerships, JV, M&A to access product and reach

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Transform scenario best suited for Crompton

Follow the market "As-is"

Lead the market "Transform"

Enter new markets �"Full consumer play" �

•  Short term growth along with market but with long term unpredictability�

•  Sustainable higher growth than market �

•  Multifold growth due to capturing the entire consumer growth�

•  Maintain current margins �

•  Industry leading RoCE �

•  Industry leading margins from pricing and premium portfolio �

•  Moderate RoCE due to investments �

•  Low margins on account of split with partner �

•  Low RoCE from high investments �

•  Potential loss of share to new entrants as market shifts

•  Multi/sub-brand architecture needs to succeed

•  Finding the right partner

Sustainability

Risks

Economics

?

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Our core segments are first to enter a customer's home...�

Air �Circulation �

Small �kitchen

appliances �

Decorative lights�

Air circulation �

CGCPL's early consumer connect will be leveraged to enter successfully in new segments

Consumer �Water �

Products�

...we will leverage this early consumer connect to succeed in new segments �

Rooftop solar lighting solutions �

Personal care �

Large kitchen �appliances �

(hoods and hobs) �

Street light �automation�

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Our four dimensional strategy to transform CGCPL

Further, the organization and processes are being re-designed to support this transformation

Brand equity

Offering

Reach

Cost & SCM optimization

1

2

3

4

(1): Refers to Advertising and Sales Promotion spend.

FY 2014

•  Single brand across segments

•  Low youth awareness •  Low advertising spend(1)

•  Value offering with mid-range pricing

•  Limited portfolio expansion

•  156,000 retailers

•  Urban middle class customers

•  Material costs: 74% of sales

Target

•  Multi / sub-brand positioning •  High brand awareness •  Double advertising spend(1)

•  Premium offerings in air circulation, consumer water products and kitchen appliances

•  New product offering in adjacent segments

•  270,000 retailers

•  Urban elite, urban and small town middle class customers

•  Material costs: 71% of sales

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Brand Crompton (FY 2014) Brand Crompton (Target)

•  Single brand for all segments

•  Brand equity strongest in air circulation, lighting and consumer water products

•  Strong brand connect with consumers aged 40–65 years

•  Low awareness among younger consumers

•  Advertising and promotion spend of 1.7%

•  Multi/sub-brand strategy focusing on premium, mid-market and rural offering

•  Clear and differentiated brand strategy for each segment

•  Strong brand connect with consumers aged 25–39 and 40–65 years

•  High awareness among younger consumers

•  Advertising and promotions spend to double and to be in line with best in class

•  Improved in-store experience

Brand equity

Target consumer

Brand awareness

Crompton will build on this connect and invest in the brand

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Air Circulation Lighting Consumer Water Products

Home & Kitchen appliances

Current portfolio

New products

in existing range

New designs in premium ceiling fans, air circulators, TPW &

personal fans

Stainless steel pumps, premium range of water heaters

Premium range of small kitchen appliances

Home and street light automation and pole lighting

New product segments

Source: CG internal data

We have already begun development process in many of these categories

Full product range to support brand positioning and consumer connect

We have already begun development process in many of these categories 39

40 We have already begun development process in many of these

categories

Transformation strategy: Expand our customer base

•  Buy aesthetic premium products •  Brand conscious

Small town middle class Urban elite Urban middle class

•  Core segment which historically drove growth

•  Demand reliability & performance

•  High aspirations •  Access / availability is a

challenge

Leverage existing connect to cross-sell through wider product portfolio (86 mn households2 )

Drive premium offering &

target using new channels

Drive reach & nurture loyalty

Current focus (42 mn households1 )

1. Number of Households in 2015. 2. Number of Households in 2020.

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We have a very senior management team with significant relevant experience

•  Previously President and CEO at Honeywell India

•  Prior to this, he has spent 19 years with GE in various roles

•  16 years of Finance experience

•  Previously Finance Controller for Pernod Ricard India and Finance Manager for Pepsico India

•  16 years of experience •  Previously worked with

companies such as Aditya Birla Retail, Dabur, Reckitt Benckiser and Heinz

•  32 years of experience of which 23 years are with Crompton Greaves Ltd.

•  Previously worked as All India Marketing Manager – Fans and Marketing Manager – West Region

•  35 years of experience with Crompton Greaves Ltd.

•  Started his career with Pumps division of Crompton Greaves Ltd. as General Manager Accounts in 1979

•  21 years of experience. •  Previously worked with

ABB Ltd. as Vice President. Joined Crompton Greaves Ltd. in 2012 as General Manager – Strategy

•  20 years of experience across E-tail, Retail, Automobiles and Petroleum

•  Previously worked with HomeShop18, Reliance, Tata and Videocon

•  30 years of experience. •  Joined Crompton

Greaves Ltd. in 1990 •  Through the years has

moved across roles as AGM, AIMM, Unit Head and PL Head – Lighting

Ash Gupta President

Amit Ganguly

Finance Head Dhruva Chandrie

PL Head

Uday Mahajani

PL Head - Fans

Kunal Dhawan CMO & PL

Head - Lighting

Premanand Bhat PL Head - Pumps

Ramesh Kumar Global Sales &

Service

Sundar Iyer Strategy &

Business Planning Head

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Agenda

CG at a glance


Market environment

Way forward



Q&A

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INVESTORS' PRESENTATION -- Demerger and Way forward

Documents

Transcript of INVESTORS' PRESENTATION -- Demerger and Way forward