Crompton Greaves’ Mergers and Acquisitions: Evidence from Indian Manufacturing Company
Incorporated in the year 1937, Crompton Greaves is engaged in designing, manufacturing and marketing high technology, electrical products and services related to power generation, transmission, distribution and execution of turnkey projects. Crompton Greaves focus on three business groups, namely, Power Systems, Industrial Systems and Consumer Products. The company manufactures a wide range of products such as power & industrial transformers, HT circuit breakers, LT & HT motors, DC motors, traction motors, alternators/generators, railway signaling equipment, lighting products, fans, pumps and public switching, transmission and access products. In addition, the company also undertakes turnkey projects from concept to commissioning. With manufacturing plants across Gujarat, Maharashtra, Goa, Madhya Pradesh and Karnataka, Crompton Greaves and a strong presence in the domestic market it has also spread its business in the Southeast Asian and Latin American markets. It has joint ventures and technological tie-ups with W. Lucy & Co. of the UK and the Danish company Brook Hansen. It comes under the ownership of Avantha Group whose focus is on strategic acquisitions and financial structuring. Currently, Mr. Gautam Thapar is the Chairman of the company.1
Crompton Greaves’ Mergers & Acquisitions (M&As)
Crompton Greaves made several M&As since 1990 till date. Crompton Greaves carried out seven merger deals and eleven acquisition deals. It adopted an inorganic growth strategy for survival and success. Exhibit I shows the various M&As done by Crompton Greaves....................
1 Crompton Greaves, Anon., http://www.msepower.com/frontend/ProductList.aspx?cnl2=HPy+Z1dmHJY=&lang=en_us&output=json, 2012 (accessed date: November 16th 2012)