ACCUMULATE Powering Aheadsmartinvestor.business-standard.com/BSCMS/PDF/crompton greave… · Crompton Greaves Initiating Coverage Powering Ahead Crompton Greaves (CGL), a part of

1January 30, 2008 For Private Circulation Only - Sebi Registration No : INB 010996539June 12, 2009 For Private Circulation Only - Sebi Registration No : INB 010996539 1

Crompton GreavesInitiating Coverage

Powering AheadCrompton Greaves (CGL), a part of the US $3bn Avantha Group, is one of the leadingplayers in the Power Transmission & Distribution (T&D) Equipment business in India.During FY2009-11E, we expect the company to register a Top-line and Bottom-line CAGR of13.6% and 15.6%, respectively. At the current price of Rs293, the stock is quoting at 17.2xand 14.3x FY2010E and FY2011E EPS respectively, which we believe is attractivecompared to its peers ABB and Areva T&D, which are quoting at 27.4x and 27.0x CY2010EEPS, respectively. We assign a Target P/E multiple of 15x and Initiate Coverage on thestock, with an Accumulate recommendation and Target Price of Rs306.

Multiple Revenue Streams: CGL has multiple revenue streams comprising threebusiness segments, viz. Power Systems, Consumer Products and Industrial Systems. Webelieve that such a diversified business presence helps to de-risk the company as thePower Systems business is a high-Value, high-Turnover business with a strong globalfootprint. On the other hand, the Industrial Systems business is largely a domestic one.While the Consumer Products business is the the fastest cash generator for the company.

Acquisitions to bridge Technology Gaps, provide Scale as well: CGL has beenpursuing both organic and inorganic growth to inch closer towards its objective of becominga "full solutions provider". Over the past few years, the company has made several strategicoverseas acquisitions including Pauwels (Belgium), Ganz (Hungary), Microsol (Ireland),Sonomatra (France) and MSE Power Systems (USA). These acquisitions besides pluggingthe technology gaps has provided the necessary scale to its operations.

Power Sector to drive Growth: Currently the Power Systems Segment constitutesaround 85% plus of CGL's standalone Order Book and even more so on the consolidatedbasis. Further, given the massive scale of T&D expansion planned in thecountry along with the grid strengthening and upgradation programme in the developedmarkets, we believe that the Power Systems Segment would continue to propel the company'sgrowth in future as well.

Puneet Bambha

Tel: 022 - 4040 3800 Ext: 347

E-mail: [email protected]

Source: Company, Angel Research

Key Financials (Consolidated)Y/E March (Rs cr) FY2008 FY2009 FY2010E FY2011E

Net Sales 6,832 8,737 9,807 11,272

% chg 21.2 27.9 12.2 14.9

Net Profit 407 560 623 748

% chg 44.4 37.7 11.3 20.1

EBITDA (%) 10.9 11.4 11.0 11.1

EPS (Rs) 11.1 15.3 17.0 20.4

P/E (x) 26.4 19.2 17.2 14.3

P/BV (x) 8.3 5.9 4.6 3.6

RoE (%) 36.3 36.1 29.9 28.0

RoCE (%) 24.0 26.8 25.1 25.3

EV/Sales (x) 1.7 1.3 1.1 0.9

EV/EBITDA (x) 15.2 11.1 10.1 8.3

Shareholding Pattern (%)

Promoters 41.2

MF / Banks / Indian FIs 36.4

FII / NRIs / OCBs 12.7

Indian Public / Others 9.7

BSE Code 500093

NSE Code CROMPGREAV

Reuters Code CROM.BO

Bloomberg Code CRG@IN

BSE Sensex 15,238

Nifty 4,583

Abs. 3 m 1yr 3yr

Sensex (%) 82.6 (0.1) 60.8

Crompton (%) 147.4 17.3 138.0

Stock Info

Sector Capital Goods

Market Cap (Rs cr) 10,725

Beta 1.0

52 Week High / Low 312/100

Avg Daily Volume 290968

Face Value (Rs) 2

ACCUMULATEPrice Rs293

Target Price Rs306

Investment Period 12 months


Crompton Greaves

Capital Goods

Company Background

CGL, a part of the US $3bn Avantha Group, is one of the leading players in the Power T&DEquipment business in India. The company has a well diversified presence and is primarilyengaged in designing, manufacturing and marketing technologically advanced electricalproducts and services related to power generation, T&D, besides executing turnkey projects.The company's business operations comprise 21 manufacturing divisions spread across Gujarat,Maharashtra, Goa, Madhya Pradesh and Karnataka and is supported by a well-knit marketingand services network through 14 branches under the overall management of four regional salesoffices.

Source: C-line, Angel Research

Exhibit 1: Shareholding Pattern (%)


Exhibit 2: Board CompositionName StatusMr Gautam Thapar ChairmanMr Sudhir M. Trehan Managing DirectorMr Scott Bayman Non-Executive, IndependentDr Omkar Goswami Non-Executive, IndependentMr Sanjay Labroo Non-Executive, IndependentMs Meher Pudumjee Non-Executive, IndependentMr Satya Pal Talwar Non-Executive, IndependentDr Valentin Von Massow Non-Executive, Independent

The company's operations are primarily organised into three business segments, viz. PowerSystems, Industrial Systems and Consumer Products. Notably, over the past few years, thecompany has been expanding its geographical reach with several strategic overseasacquisitions including Pauwels (Belgium), Ganz (Hungary), Microsol (Ireland), Sonomatra(France) and MSE Power Systems (USA). CGL's customer base too reflects a wide base as itsincludes State Electricity Boards (SEBs), Utility companies, government and local bodies andseveral large companies both in the private and public sector.

CGL, a part of the US $3bnAvantha Group, is one of theleading players in the PowerT&D Equipment business inIndia


Crompton Greaves

Capital Goods

Investment Arguments

Multiple Revenue Streams

CGL has multiple revenue streams as it operates through three business segments, viz. PowerSystems, Consumer Products and Industrial Systems. The Power Systems Division, thelargest of the three segments, contributes around 47.9% and 49.9% of the company's StandaloneFY2009 Revenues and EBIT, respectively. The Consumer Products and Industrial SystemsDivisions contributes around 28.5% and 22.7% of the company's standalone FY2009 Revenues,respectively. However, on a consolidated basis (including contribution of the overseassubsidiaries and other associate companies), share of the Power Systems Division spikes to70.4% and 62.3% of consolidated FY2009 Revenues and EBIT, respectively. This is due to thefact that all its major overseas subsidiaries, viz. Pauwels, Ganz and Microsol, derive almost alltheir Revenue from power-related businesses.

We believe that such a diversified business presence helps to de-risk the company as thePower Systems business is high-value, high-turnover business with a strong global footprint.Equally, it is a relatively capital intensive business. On the other hand, the Industrial Systemsbusiness is a high-margin business with a relatively fixed asset turnover and is largely adomestic one. While Consumer Products, the company's second largest business, enjoyssecond highest margins and is the fastest cash generator. With a phenomenally high AssetTurnover ratio and a strong brand presence and goodwill in India, the Consumer business throwsup considerable amount of cash for the company.


Exhibit 3: FY2009 Standalone Segment-wise Revenues & EBIT (%)

PowerSystems, 49.9

ConsumerProducts, 20.9

IndustrialSystems, 29.1

Others, 0.1

A diversified businesspresence helps to de-risk thecompany

Operates through threebusiness segments, viz. PowerSystems, Consumer Productsand Industrial Systems

Revenues EBIT

PowerSystems, 47.9



Others, 0.9


Crompton Greaves

Capital Goods

Power Systems

Power Systems (or CG power) includes the power business of Crompton (India) and thecombined global T&D businesses, and as mentioned earlier, is the largest revenue generator forCGL. This SBU manufactures power transformers, distribution transformers, extra high voltage(EHV) and medium voltage (MV) circuit breakers, gas insulated switchgear (GIS), EHV and MVinstrument transformers, lightning arrestors, isolators, vacuum interrupters and electronicenergy meters. In addition to designing and manufacturing these sub-station equipment CGPower provides end-to-end turnkey solutions for T&D through customised sub-station projects.During FY2005-09, this Segment posted Revenue CAGR of around 62.3%. This, coupled withMargin expansion, led to EBIT CAGR of 75.1% over the mentioned period. Notably, inorganicgrowth led through several overseas acquisitions in the past few years contributed significantlyto the phenomenal growth of this segment. Going ahead during FY2009-11E, we expect thisSegment to register Revenue and EBIT CAGR of 14.1% and 15.9%, respectively.


Exhibit 4: FY2009 Consolidated Segment-wise Revenues & EBIT (%)

PowerSystems, 70.4



Others, 1.4

PowerSystems, 62.3



Others, 1.9


Exhibit 5: Power Systems - Revenues and Margins

Revenues (LHS) EBIT (LHS) EBIT Margin (RHS)

7.56.8

8.2

9.410.1 10.1 10.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010E FY2011E

(%)

(Rs

cr)

Power Systems includes thepower business of Crompton(India) and the combinedglobal T&D businesses

Revenues EBIT


Crompton Greaves

Capital Goods

Consumer Products

CGL's Consumer Products Segment is engaged in the business of fans, pumps, lightingequipment (light sources and luminaires) and a range of electrical household appliances suchas geysers, mixers, grinders, electric irons, toasters and emergency lanterns. Notably, theCGL's Fans Division is the market leader in India with one of the widest distribution network.During FY2005-09, Revenues of this Segment posted a CAGR of around 18.0%. This coupledwith around 230bp Margin expansion led to EBIT CAGR of 24.9% over the period. Going aheadduring FY2009-11E, we expect this Segment to post a Revenue and EBIT CAGR of 13.7% and12.1%, respectively.


Exhibit 6: Consumer Products - Revenues and Margins


8.8

9.7 9.6

10.8 11.1 10.5 10.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800


(%)

(Rs

cr)

Industrial Systems

The company's Industrial Systems SBU is involved in the manufacture and marketing of ElectricMotors covering - Fractional Horse Power Motors, LT Motors, HT Motors, DC Machines,Stampings, Traction Motors & Alternators, Electrical Control Panels for diesel electriclocomotives and Railway Signaling Products. Notably, Industrial Systems enjoys the highestEBIT Margin among all the primary business segments of the company. During FY2005-09,Revenues of this Segment posted a CAGR of around 19.1%. This, coupled with around 510bpMargin expansion, led to EBIT CAGR of 29.1% over the period. Going ahead duringFY2009-11E, we expect the Industrial Segment to continue to witness near-term pressuresresulting in Revenue and EBIT CAGR of 10.0% and 5.3%, respectively.

CGL's Fans Division is themarket leader in India

Industrial Systems enjoys thehighest EBIT Margin amongall the primary businesssegments of the company


Crompton Greaves

Capital Goods


Exhibit 7: Industrial Systems - Revenues and Margins


13.4 13.614.5

20.3

18.517.0 17.0

0.0

5.0

10.0

15.0

20.0

25.0

0

200

400

600

800

1,000

1,200

1,400

1,600


(%)

(Rs

cr)

Acquisitions bridge the Technology Gaps…

CGL has been pursuing both organic and inorganic growth to inch closer towards its objective ofbecoming a "full solutions provider". Over the past few years, the company has made severalstrategic overseas acquisitions, which besides plugging the technology gaps has strengthenedCGL's product portfolio and provided it access to the key European and American markets.Notably, the company has also exhibited its superior execution capabilities in managing theseacquisitions. CGL has not only significantly turned-around Pauwels' performance (the companywas under financial distress and had negative return on Net Worth at the time of acquisition),but also has recently turned-around Ganz at the operational level.

Pauwels acquisition in 2005

CGL completed acquisition of the Belgium-based Pauwels on May 13, 2005. Established over60 years ago, the Pauwels Group is a leader in the design and manufacture of three-phasedistribution and power transformers, in the production and retrofitting of sub-stations and inproviding integrated solutions and services for the international T&D market. The group hasmanufacturing facilities in Belgium, Ireland, Canada, USA and Indonesia and a well-spreaddistribution network spread across the globe. Pertinently, in addition to widening CGL's productsuite, the scale associated with this acquisition catapulted the company to figure amongst thetop-ten transformer manufacturers in the world.

Ganz acquisition in 2006

CGL also successfully acquired the Hungarian-based Ganz on October 17, 2006 with anenterprise value of Euro 35mn. The company has over 125 years of experience in the productionof high voltage switchgear, power transformers, and in the turnkey implementation of variouspower T&D projects including sub-stations. The company also has considerable experience inretrofitting and maintenance of power plants, sub-stations and electrical systems. In addition, itdesigns and manufactures asynchronous and traction motors, which complemented Crompton'sHigh Tension (HT) motors business.

Pursuing both organic andinorganic growth to inchcloser towards its objective ofbecoming a "full solutionsprovider"


Crompton Greaves

Capital Goods

Microsol acquisition in 2007

The company also successfully acquired Ireland-based Microsol Holdings on May 28, 2007with an enterprise value of Euro10.5mn. Microsol has a technological edge in the sub-stationautomation business. Over the years, it has expanded into a full-line developer and supplier ofautomation equipment and solutions, as well as network enabled products. The acquisitionreinforces CGL's ability to design, build and service world-class sub-stations, with state-of-the-art automation and high-end engineering.

Sonomatra acquisition in 2008

CGL concluded an arrangement for the acquisition of Societe Nouvelle de Maintenance deTransformateurs (Sonomatra) of France in June 2008 for an enterprise value of Euro1.30mn.Sonomatra provides on-site maintenance and repair of power transformers and on-load tapchangers, oil analysis, oil treatment and retro filling. This acquisition will enhance CGL'scapabilities in the services segment of its T&D business.

MSE acquisition in 2008

Crompton has also concluded an arrangement for the acquisition of USA based MSE PowerSystems Inc and its group companies in September 2008 for an enterprise value of $16mn. Thegroup is engaged in Engineering, Procurement and Construction (EPC) of high voltage electricpower systems. The group is also well-equipped to carry out conceptual engineering, systemstudies and complete EPC engineering, spanning Relay/Control, SCADA and sub-stationautomation. We believe this acquisition will increase CGL's strength as a Systems Integrator inthe EPC International business arena, particularly in the Renewable Energy (Wind) Segment.

Remaining Gaps: However, it is pertinent to note here that existing gaps in the company'sportfolio remains in the area of MV switch gear, HVDC Segment and in industrial drives andautomation. Hence, CGL is actively scouting for acquisitions to bridge in the same and developitself into a "full solutions provider".

…& provide Scale as well

Besides bridging in the technology gaps overseas acquisitions are widening the company'sgeographical reach and providing the necessary scale to its operations. It is pertinent to notehere that the Pauwels acquisition proved to be a significant landmark in the company’s historyhelping CGL to almost double its revenues. Besides, over the years, the company’s overseassubsidiaries have been gradually increasing their contribution and now account for nearly 47.2%of its consolidated Net Sales and 30.3% of its total EBIT.

Overseas acquisitions widenthe company's geographicalreach and provide thenecessary scale to itsoperations


Crompton Greaves

Capital Goods


Exhibit 8: Subsidiaries account for nearly 47% of CGL's Net Sales

Net Sales - Standalone Net Sales - Subsidiaries

38.940.3

43.3

47.2

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY2006 FY2007 FY2008 FY2009

(%)

(Rs

cr)


Exhibit 9: Subsidiaries account for nearly 30% of CGL's EBIT

EBIT - Standalone EBIT - Subsidiaries

25.4

29.5

24.9

30.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

0

200

400

600

800

1,000

1,200

FY2006 FY2007 FY2008 FY2009

(%)

(Rs

cr)

Power Systems to drive Growth

The Power Systems Segment has been a key growth driver for the company recording a robustCAGR of 62.3% during FY2005-09 on the back of the phenomenal growth opportunities in theIndian T&D Sector coupled with strategic overseas acquisitions done by CGL. Pertinently,currently the Power Systems Segment constitutes around 85% plus of CGL's standalone OrderBook and even more so on the consolidated basis. Given the massive scale of T&D expansionplanned in the country along with the grid strengthening and upgradation programme in thedeveloped markets, we believe that the Power Systems Segment would continue to propel thecompany's growth in the future as well.

Exhibit 10: Eleventh Plan - Total Fund requirement (Rs cr)Particulars State Centre Private TotalGeneration 123,792 202,067 85,037 410,896Transmission 65,000 75,000 - 140,000Distribution including rural electrification 287,000 - - 287,000Total 475,792 277,067 85,037 837,896

Source: CEA, Angel Research

Massive scale of T&Dexpansion planned in thecountry along with the gridstrengthening in thedeveloped markets to drivegrowth


Crompton Greaves

Capital Goods

Transmission

Globally, for every Rupee invested in Generation, an equivalent amount is invested in T&D. InIndia, this ratio has been hovering at around 0.5, implying for every Rupee invested inGeneration, only 50 paise is invested in T&D. This has resulted in excess loading of thetransmission lines and the government is incrementally trying to boost the correspondinginvestment in the T&D space.

National Grid Capacity Expansion Plan

Some regions of the country do not have adequate natural resources for setting up power plantsto meet their future requirements whereas others have abundant natural resources. Due to thisuneven distribution of the natural resources in the country, the government has envisagedexpansion of the national grid capacity from around 17,000MW to 37,150MW during theEleventh Plan period.

Source: Crisil, Angel Research

Exhibit 11: Inter-Regional Capacity

2,300 MW

1,700 MW

5,850 MW

1,250 MW

3,600 MW

1,850 MW

Northem Grid North Eastern Grid

Eastern Grid

Southern Grid

Western Grid

Source: Crisil, Angel Research

Exhibit 12: Expected Inter-regional Capacity by 2011-12

7,600 MW

2,700 MW

2,450 MW6,500 MW3,000 MW

11,300 MW

Northern Grid North Eastern Grid

Eastern GridWestern Grid

Southern Grid3,600 MW

Expansion of the national gridcapacity from around17,000MW to 37,150MWenvisaged during the EleventhPlan period


Crompton Greaves

Capital Goods

Focus on High Voltage Segments

The national grid capacity expansion plan increasingly focuses on higher voltage segments.Notably, the share of 765kV capacities is expected to increase from a meagre 6.7% in 2007 to24.8% by 2012. In fact, Power Grid Corporation of India (PGCIL) also plans to scale up thevoltage level of the transmission network in the country to 1200kV by 2012. This becomescritical as the higher voltage segment entail complex technology weeding out smaller playersfrom the race. This tends to benefit bigger players such as CGL, ABB, Areva T&D and Siemens,etc. who have access to the latest high-end technology. In fact, CGL has recently also won anorder for 14 number of 765kV transformers from PGCIL. Of these, 11 are planned to bemanufactured at the company's overseas Ganz facility, while the remaining 3 would bemanufactured in India.

Source: CEA, Angel Research

Exhibit 13: Increasing share of High-Voltage Segment

765kV 400kV HVDC bi-pole HVDC b-b HVDC mono-pole 220kV

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2002 2005 2007 2010 2012

(MW

)

Distribution

One of the major reasons for the power deficit in the country is the exceptionally high T&Dlosses of around 30%. Though several initiatives taken by the government have led to slightreduction in the same, it is still way above the world-wide average of only around 15%. Thesystem inefficiencies including unplanned extension of the distribution lines, overloading of thesystem elements like transformers and conductors, etc. are the key reasons for the same. Inaddition, the non-metering, non-billing or pilferage of power has also substantially compoundedthe problem.

APDRP

Such high level of losses prompted the government to launch the Accelerated PowerDevelopment & Reform Programme (APDRP) in 2001 with the objective of strengthening thesub - T&D Network and lower the AT&C losses to below 15% levels. The original scheme had anoutlay of Rs40,000cr, bifurcated equally between the Investment and Incentive component.However, failure of the scheme with far slower-than-expected reduction in losses impelled thegovernment to restructure the APDRP. The new scheme has been launched with a plannedoutlay of Rs51,577cr and target to reduce losses to 15% levels by the end of the Eleventh Plan.

Higher voltage segment entailcomplex technology weedingout smaller players from therace


Crompton Greaves

Capital Goods

Notably, the new scheme has an increased focus on the actual and demonstrable performancein terms of sustained loss reduction.

Overseas Power Business - Transmission a Saviour

Even out of the global Power business, around 50% comes from the Transmission Segment,nearly 33% comes from Distribution Segment while the remaining 17% comes from Contractingand Services. Management maintains that there is no slowdown on the Power Transformersside (which is directly linked to transmission) primarily due to the grid strengthening and upgradation programme in the developed markets. On the other hand, the Distribution Transformerbusiness has definitely been facing challenging times due to the housing slowdown, particularlyin the US and Ireland. However, effects of same have been mitigated to great extent by windenergy and renewal distribution transformers. Thus, loss of housing may not have beencompletely compensated, but definitely alleviated enough by the increase in renewable energy.


Exhibit 14: Overseas Power Business

Transmission,50Distribution, 33

Contracts /Services, 17

Industrial Segment to however remain under pressure

In the past few quarters, several headwinds emerging due to the unfavourable macro-economicenvironment have been taking its toll on the entire Capital Goods Sector including CGL. Post astrong GDP growth of more than 9% recorded by India for three consecutive years, the countryhas shifted to a relatively lower growth trajectory. Notably, the growth estimates for the year2008-09 have already been pegged around 6.7% followed by another year of a muted growth forthe economy. Similarly, the Index of Industrial Production (IIP) has also cooled off with growthfalling from highs of 8.5% in FY2008 to meagre 2.6% in FY2009.

Against the backdrop of the challenging macro environment, we believe that CGL is likely towitness near-term growth pressures both in the Consumer Products and even more so in theIndustrial Systems business. In the recent conference call, even management admitted to thefact that Industry segment has seen a substantial slowdown on the standalone business in thethird and fourth quarter of FY2009. In-fact the Order inflow was negative by 3% and theunexecuted Order Book was also negative by about 8%. Further, management expects thepressure to continue during 1HFY2010 as well.

Transmission Sector,contributing around 50% ofthe global power business tobe a key saviour

Likely to witness near-termgrowth pressures in theIndustrial Systems business


Crompton Greaves

Capital Goods

Source: Bloomberg, Angel Research

Exhibit 15: Weak IIP & CG Index Component Growth

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Ja

n-0

1

Ju

l-0

1

Ja

n-0

2

Ju

l-0

2

Ja

n-0

3

Ju

l-0

3

Ja

n-0

4

Ju

l-0

4

Ja

n-0

5

Ju

l-0

5

Ja

n-0

6

Ju

l-0

6

Ja

n-0

7

Ju

l-0

7

Ja

n-0

8

Ju

l-0

8

Ja

n-0

9

(%)

IIP Index Growth 3 per. Mov. Avg. (IIP Index Growth)Cap Goods Index Growth 3 per. Mov. Avg. (Cap Goods Index Growth)

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Ja

n-0

1

Ju

l-0

1

Ja

n-0

2

Ju

l-0

2

Ja

n-0

3

Ju

l-0

3

Ja

n-0

4

Ju

l-0

4

Ja

n-0

5

Ju

l-0

5

Ja

n-0

6

Ju

l-0

6

Ja

n-0

7

Ju

l-0

7

Ja

n-0

8

Ju

l-0

8

Ja

n-0

9

(%)

Investment in Avantha Power - an overhang

In a major development on March 24, 2009, CGL decided to invest Rs227cr and have an equityshare holding of 41% in group company, Avantha Power and Infrastructure (APIL). APIL is in thebusiness of generation and T&D of electricity. The company operates four captive power plantswith an aggregate capacity of 95MW, which it is expanding to 165MW. In addition, the companyis also in the process of establishing two new independent power producer plants with acapacity of 600MW each at its Korba project in Chhattisgarh and Jhabua project in MadhyaPradesh.

CGL's current investment in the company will be majorly utilised to fund the Korba power plant.However, as this funding alone will not be sufficient, APIL is looking at alternative sources tofinance the residual. Notably, post dilution CGL’s stake would come down from 41%, but itintends to maintain a minimum of 26% in APIL. It is pertinent to note here that though theinvestment by CGL was made at a book value, it has raised investor concerns as theshareholders approval was not taken for the same. Nevertheless, post CGL's investment, theKorba project has made good progress and APIL also recently placed a BTG order with BHEL.Thus, going ahead, we believe that developments on the Avantha Power front would be closelyobserved by the investor community.

Developments on the AvanthaPower front would be closelyobserved


Crompton Greaves

Capital Goods

Financial Overview

Moderate Top-line growth

During FY2005-09, CGL posted a phenomenal consolidated Top-line CAGR of 44.8% withRevenues surging on the back of its overseas acquisitions coupled with the strong growthwitnessed in the standalone businesses. Notably, the major spike came in during FY2006, withRevenues almost doubling post the acquisition of Pauwels. The standalone Power, Consumerand Industrial Segments too contributed recording Revenue CAGR of 26.0%, 18.5% and 16.6%respectively, during the mentioned period. Going ahead however, we expect CGL to postmoderate Top-line growth despite the prevailing challenging macro environment aided by thecomparative resilience in the Power Sector. We estimate CGL to register consolidated RevenueCAGR of 13.6% over FY2009-11E on the back of a healthy order book along with pick up in theeconomy in FY2011.


Exhibit 16: Moderate Revenue Growth

Net Sales (LHS) Growth (RHS)

14.4

107.5

36.7

21.227.9

12.2 14.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

0

2,000

4,000

6,000

8,000

10,000

12,000


(

%)

(Rs

cr)

Operating Margins to contract

During FY2005-09, CGL recorded an expansion in EBITDA Margins by 305bp to 11.4% owing tothe increase in Gross Margins. The Raw Material cost to Sales ratio declined by 912bp from72.0% to 62.9% on the back of the various initiatives taken by the company including valueengineering, integrated raw material procurement and strategic vendor development, amongothers.

However, going ahead during FY2009-11E, we expect the company to post a lower CAGR of12.3% in Operating Profits owing to margin contraction. EBITDA Margin is expected to dip by30bp to 11.1% over the period on the back of intensifying competitive pressures both from thedomestic and overseas players, which was evident few months back when 49 numbers of 765kV transformer orders were awarded by PGCIL. Then, though CGL managed to bag orders for14 transformers, the remaining major chunk of 35 transformers went to the Korean company,Hyosung, whose bid was about 27% lower than that of CGL. In the recent post resultconference call, management too admitted that competition is intensifying from both theChinese as well as the Korean players who have about 11% price differential. On the Industrial

We expect CGL to postconsolidated Revenue CAGRof 13.6% over FY2009-11E


Crompton Greaves

Capital Goods

business front too, the company has been clear with its strategy of compromising margins topursue volume growth.

Going ahead, Net Profit Margins are however expected to improve slightly by 23bp to around6.6% primarily due to the lower interest obligation. Consequently, we estimate consolidated NetProfit to post CAGR of 15.6% over FY2009-11E as against 47.0% CAGR clocked in FY2005-09.


Exhibit 17: Profitability Trend

EBITDA (LHS) Net Profit (LHS) EBITDA% (RHS) PAT% (RHS)

8.37.9

8.6

10.911.4

11.0 11.1

6.05.6

5.0

6.06.4 6.4 6.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0

200

400

600

800

1,000

1,200

1,400


(

%)

(Rs

cr)

Return Ratios

During FY2005-09, the company's Return on Equity (RoE) increased from 32.6% to around36.1% primarily driven by an around 38bp expansion in Net Profit Margins (NPM) and rise in itsAsset Turnover ratio. Notably, CGL's Asset Turnover ratio increased from 2.9x to 3.7x during theperiod. Going ahead, though we expect NPM to improve slightly, RoEs are expected to fall to28.0% in FY2011 on the back of the reducing leverage and a marginal reduction in the AssetTurnover Ratio.


Exhibit 18: Return Ratios

ROE ROCE

32.6

39.7

32.7

36.3 36.1

29.9 28.0

20.3

28.6

23.6 24.026.8

25.1 25.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0


(

%)

We estimate consolidated NetProfit CAGR of 15.6% overFY2009-11E


Crompton Greaves

Capital Goods


Exhibit 19: DuPont AnalysisFY2005 FY2006 FY2007 FY2008 FY2009 FY2010E FY2011E

Net Profit / Sales (%) 6.0 5.6 5.0 6.0 6.4 6.4 6.6Sales / Avg Assets 2.9 4.3 3.6 3.4 3.7 3.6 3.5Avg Assets / Avg Equity 1.9 1.6 1.8 1.8 1.5 1.3 1.2RoE (%) 32.6 39.7 32.7 36.3 36.1 29.9 28.0

Key Downside Risks

Slower Economic Recovery

The current macro-environment has taken its toll on the entire Capital Goods Sector includingCGL. Though the domestic Power business has been comparatively resilient, the fortune ofIndustrial and Consumer Segment are highly linked to the state of the economy. Thus, if theeconomic revival is slower than expected with substantial slowdown in demand, it would pose adownside risk to our estimates.

Slowdown in the International Business

The company has significant exposure to the European (around 34% of Revenues) and USmarkets. Currently, the global meltdown is taking a heavy toll on the demand (especially for thedistribution transformers) in these key markets. Thus, if the slowdown in demand in thesemarkets is worse than expected, it could adversely affect the revenues and profitability of thecompany.

Sharp increase in Commodity Prices

Copper, Steel and Aluminum constitute the key inputs for the company. Though CGL has apolicy of hedging its exposure with back-to-back contracts, if the commodity prices witness asharp spike it could still adversely impact overall Margins of the company.

Increasing Competition

Opportunities in the domestic Power Sector have resulted in increasing competition both fromthe domestic and overseas players. Thus, if the company loses market share rapidly or theoverseas players (especially Chinese and Korean) undercut prices sharply, it could pose adownside risk to our estimates.


Crompton Greaves

Capital Goods

Outlook and Valuation

Traditionally, CGL has been trading at a very wide forward P/E band range of 3-32x. Theacquisition of Pauwels in May 2005, besides widening its product suite and geographical reachprovided the necessary scale and catapulted the company to figure among the top-tentransformer manufacturers in the world. This, coupled with favourable macro factors includinghigh GDP growth, Power Sector reforms and buoyant Capital Markets, etc. saw the companycommanding better valuations on the bourses.

During FY2009-11E, we expect the company to register a Top-line and Bottom-line CAGR of13.6% and 15.6% respectively. At the current price of Rs293, the stock is quoting at 17.2x and14.3x FY2010E and FY2011E EPS respectively, which we believe is attractive compared to itspeers ABB and Areva T&D which are quoting at 27.4x and 27.0x CY2010E EPS, respectively.

It is pertinent to note here that during April 2005 - June 2009, CGL traded at an average discountof about 48% to the forward rolling P/E of ABB primarily due to the technological gaps andsuperior growth for ABB. Currently also, CGL is quoting at a hefty discount of 43-44% to ABB.However, we believe that such a high gap is unwarranted and going ahead it would narrow downas CGL has been bridging the technological gaps through various acquisitions. The gap wouldalso narrow down on the back of superior Earnings growth (15.6% CAGR for CGL as comparedto 3.6% CAGR for ABB over the next two years) and higher average RoEs of 28-29% for CGL asagainst 21-22% for ABB. Nonetheless, some discount would continue to persist due to therelative advantage of access to the parental technology, which ABB posses. We assign CGL aTarget P/E multiple of 15x and Initiate Coverage on the stock, with an Accumulaterecommendation and Target Price of Rs306.


Exhibit 20: 12-month Forward Rolling P/E Band


Crompton Greaves

Capital Goods


Exhibit 21: Crompton Forward Rolling P/E v/s Peers

0

10

20

30

40

50

60

70

Apr-01 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09

Crompton P/E Sensex P/E BHEL P/E ABB P/E


Exhibit 22: 12-month Forward Rolling EV/EBITDA


Exhibit 23: 12-month Forward Rolling P/BV


Crompton Greaves

Capital Goods

Profit & Loss Statement Rs croreY/E March FY2008 FY2009 FY2010E FY2011E

Net Sales 6,832.3 8,737.3 9,806.6 11,271.8

% chg 21.2 27.9 12.2 14.9

Total Expenditure 6,088.4 7,741.7 8,731.0 10,015.5

EBITDA 743.9 995.6 1,075.6 1,256.3

% of Net Sales 10.9 11.4 11.0 11.1

Others 67.7 58.7 75.3 85.7

Depreciation & Amortisation 126.3 121.6 131.6 140.8

Interest 70.1 65.5 55.1 44.8

PBT 615.2 867.2 964.1 1,156.4

% of Net Sales 9.0 9.9 9.8 10.3

Tax 205.4 304.7 337.5 404.8

Effective Tax Rate (%) 33.4 35.1 35.0 35.0

Profit Before Minority Interest 409.8 562.5 626.7 751.7

Minority Inter & Share of Asso. 3.1 2.6 3.5 3.5

PAT 406.7 559.9 623.2 748.2

% chg 44.4 37.7 11.3 20.1

Y/E March FY2008 FY2009 FY2010E FY2011E

SOURCES OF FUNDSEquity Share Capital 73.3 73.3 73.3 73.3

Adj Reserves & Surplus 1,213.7 1,743.2 2,272.0 2,917.2

Shareholders Funds 1,287.0 1,816.5 2,345.3 2,990.6

Minority Interest 12.3 12.3 12.3 12.3

Total Loans 842.0 718.0 618.0 468.0

Total Liabilities 2,141.2 2,546.7 2,975.6 3,470.8

APPLICATION OF FUNDS

Adj Gross Block 2,670.6 2,822.2 3,028.2 3,228.2

Less: Acc. Depreciation 1,488.6 1,610.2 1,741.8 1,882.6

Net Block 1,182.1 1,212.0 1,286.4 1,345.6

Capital Work-in-progress 47.6 26.0 20.0 20.0

Investments 93.4 93.4 320.4 320.4

Deferred Tax (Net) 58.8 58.8 58.8 58.8

Current Assets 3,401.6 4,498.8 4,629.3 5,957.8

Current Liabilities 2,642.3 3,342.4 3,339.4 4,231.9

Net Current Assets 759.3 1,156.4 1,289.9 1,725.9

Total Assets 2,141.2 2,546.7 2,975.6 3,470.8

Balance Sheet Rs crore

Cash Flow Statement Rs croreY/E March FY2008 FY2009 FY2010E FY2011E

Profit before tax 615.2 867.2 964.1 1,156.4

Depreciation 126.3 121.6 131.6 140.8

(Inc) / Dec in Working Capital (48.1) (204.0) (47.2) (147.0)

Income taxes paid (202.1) (266.6) (337.5) (404.8)

Others (0.7) 4.2 (23.7) (44.4)

Cash from operations 490.6 522.4 687.4 701.0(Inc) / Dec in Fixed Assets (398.0) (130.0) (200.0) (200.0)

Free cash flows 92.6 392.4 487.4 501.0(Inc) / Dec in Investments (29.0) 0.0 (227.0) 0.0

Others 67.7 58.7 75.3 85.7

Inc / (Dec) in Share Capital 0.0 0.0 0.0 0.0

Inc / (Dec) in Debt (62.5) (124.0) (100.0) (150.0)

Dividend and dividend tax (68.6) (85.8) (94.4) (102.9)

Others (70.1) (65.5) (55.1) (44.8)

Cash from finan. activ. (201.2) (275.2) (249.5) (297.7)Other adjustments 72.9 17.3 0.0 0.0

Net Inc / (Dec) in Cash 3.0 193.1 86.3 289.0

Opening cash balance 241.5 244.5 437.6 523.9Closing cash balance 244.5 437.6 523.9 812.9

Key Ratios

Y/E March FY2008 FY2009 FY2010E FY2011E

Per Share Data (Rs)EPS 11.1 15.3 17.0 20.4Cash EPS 14.5 18.6 20.6 24.3DPS 1.6 2.0 2.2 2.4Book value per share 35.1 49.6 64.0 81.6Operating RatiosAsset Turnover (x) 3.4 3.7 3.6 3.5EBITDA (%) 10.9 11.4 11.0 11.1NPM (%) 6.0 6.4 6.4 6.6Debt / Equity (x) 0.7 0.4 0.3 0.2Return Ratios (%)RoE 36.3 36.1 29.9 28.0RoCE 24.0 26.8 25.1 25.3Dividend payout 14.4 13.1 12.9 11.8Valuation Ratios (x)P/E 26.4 19.2 17.2 14.3P/E (Cash EPS) 20.1 15.7 14.2 12.1P/BV 8.3 5.9 4.6 3.6EV/Sales 1.7 1.3 1.1 0.9EV/EBITDA 15.2 11.1 10.1 8.3


Crompton Greaves

Capital Goods

Fund Management & Investment Advisory ( 022 - 3952 4568)P. Phani Sekhar Fund Manager - (PMS) [email protected] Bhamre Head - Investment Advisory [email protected] Mehta AVP - Investment Advisory [email protected] Team ( 022 - 3952 4568)Hitesh Agrawal Head - Research [email protected] Kour Nangra VP-Research, Pharmaceutical [email protected] Agrawal VP-Research, Banking [email protected] Jajoo Automobile [email protected] Shah IT, Telecom [email protected] Pareek Oil & Gas [email protected] Burde Metals & Mining, Cement [email protected] Solanki Power, Mid-cap [email protected] Kanani Infrastructure, Real Estate [email protected] Shah FMCG , Media [email protected] Bambha Capital Goods, Engineering [email protected] Dalmia Pharmaceutical [email protected] Sehgal Retail [email protected] Desai Logistics [email protected] Bariya Fertiliser, Mid-cap [email protected] Vora Research Associate (Oil & Gas) [email protected] Waghmare Research Associate (Metals & Mining, Cement) [email protected] Mate Research Associate (Infra, Real Estate) [email protected] Srinivasan Research Associate (Power, Mid-cap) [email protected] Agrawal Jr. Derivative Analyst [email protected]

Amit Bagaria PMS [email protected] Wagle Chief Technical Analyst [email protected] Joshi AVP Technical Advisory Services [email protected] Ail Manager - Technical Advisory Services [email protected] Jagtap Sr. Technical Analyst [email protected] Sanghvi Sr. Technical Analyst [email protected] Vasudeo Technical Analyst [email protected] Dayma Derivative Analyst - (TAS) [email protected]

Sanket Padhye AVP Mutual Fund [email protected] Rathod Research Associate (MF) [email protected] Jangid Research Associate (MF) [email protected]

Commodities Research TeamAmar Singh Research Head (Commodities) [email protected] P Sr. Technical Analyst [email protected] Gupta Sr. Technical Analyst [email protected] Patki Sr. Technical Analyst [email protected] Chauhan Technical Analyst abhishek [email protected] Joshi Technical Analyst [email protected]

Commodities Research Team (Fundamentals)Badruddin Sr. Research Analyst (Agri) [email protected] Pote Research Analyst (Energy Complex) [email protected] Walia Research Analyst ( Base Metals) [email protected] Narvekar Research Analyst ( Agri) [email protected] Rao Research Analyst (Agri) [email protected]

Bharathi Shetty Research Editor [email protected] Patil Production [email protected]

DisclaimerThis document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose possessionthis document may come are required to observe these restrictions.Opinion expressed is our current opinion as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change withoutnotice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and are for general guidance only. While everyeffort is made to ensure the accuracy and completeness of information contained, the company takes no guarantee and assumes no liability for any errors or omissions of the information. No one can usethe information as the basis for any claim, demand or cause of action.Recipients of this material should rely on their own investigations and take their own professional advice. Each recipient of this document should make such investigations as it deems necessary to arriveat an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determinethe merits and risks of such an investment. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions- futures, options and other derivatives as well as non-investment grade securities - involve substantial risks and are not suitable for all investors. Reports based on technical analysis centers on studyingcharts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals.We do not undertake to advise you as to any change of our views expressed in this document. While we would endeavor to update the information herein on a reasonable basis, Angel Broking, its subsidiariesand associated companies, their directors and employees are under no obligation to update or keep the information current. Also there may be regulatory, compliance, or other reasons that may prevent AngelBroking and affiliates from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Angel BrokingLimited and affiliates, including the analyst who has issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companiesmentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to company/ies mentioned herein or inconsistent with any recommendation and related information and opinions.Angel Broking Limited and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companiesreferred to in this report, as on the date of this report or in the past.

Research & Investment Advisory: Acme Plaza, 3rd Floor ‘A’ wing, M.V. Road, Opp Sangam Cinema, Andheri (E), Mumbai - 400 059

Buy (Upside > 15%) Accumulate (Upside upto 15%) Neutral (5 to -5%)Reduce (Downside upto 15%) Sell (Downside > 15%)

Ratings (Returns) :


Crompton Greaves

Capital Goods

Central Support & Registered Office:G-1, Akruti Trade Centre, Road No. 7, MIDC Marol, Andheri (E), Mumbai - 400 093 Tel : 2835 8800 / 3083 7700

Regional Offices:

Private Client Group Offices: Sub - Broker Marketing:

Branch Offices:

Corporate & Marketing Office : 612, Acme Plaza, M.V. Road, Opp Sangam Cinema, Andheri (E), Mumbai - 400 059 Tel : (022) 3941 3940NRI Helpdesk : e-mail : [email protected] Tel : (022) 4000 3622 / 4026 2700Investment Advisory Helpdesk : e-mail : [email protected] Tel : (022) 3952 4568Commodities : e-mail : [email protected] Tel : (022) 3081 7400PMS : e-mail : [email protected] Tel: (022) 3953 2800Feedback : e-mail : [email protected] Tel : (022) 2835 5000

Surat - Tel: (0261) 3071 600

Rajkot - Tel :(0281) 2490 847

Visakhapatnam - Tel :(0891) 3987 200 - 29

Mumbai (Powai) - Tel: (022)3952 6500

Pune - Tel: (020) 3071 0250 / 2551 3143

New Delhi - Tel: (011) 3045 1300 / 4077 1300

Nagpur - Tel: (0712) 3041 533

Nashik - Tel: (0253) 3011 400 / 1

Mumbai (Goregoan) Tel: (022) 2879 0411-15

Indore - Tel: (0731) 3941 3940

Jaipur - Tel: (0141) 3941 3940

Kanpur - Tel: (0512) 3017 700

Kolkata - Tel: (033) 3941 3940

Lucknow - Tel: (0522) 3057 700

Ludhiana - Tel: (0161) 4697 400

Ahmedabad - Tel: (079) 3982 2300 / 3982 5200

Bengaluru - Tel: (080) 3941 3940

Chennai - Tel: (044) 3941 3940

Hyderabad - Tel: (040) 3091 2222

Coimbatore - Tel: (0422) 3941 3940

Cochin - Tel: (0484) 3941 3940

Ahmedabad (C. G. Road) - Tel: (079) 3982 9934 Powai - Tel: (022) 3952 6500Rajkot (Race course) - Tel: (0281) 2490 847Surat - Tel: (0261) 3071 600

Andheri (W) - Tel: (022) 2635 2345 / 6668 0021

Bandra (W) - Tel: (022) 2655 5560 / 70

Andheri ( L o k h a n d w a l a ) - Te l : ( 0 2 2 ) 3 9 5 2 5 6 7 9

Bandra (W) - Tel: (022) 6643 2694 - 99

Borivali (W) - Tel: (022) 3952 4787

Borivali (Punjabi Lane) - Tel: (022) 3951 5700.

Chembur - (Basant) - Tel:(022) 3267 9114/ 15

Kalbadevi - Tel: (022) 2243 5599 / 2242 5599

Kandivali (W) - Tel: (022) 2867 3800/2867 7032

Chembur - Tel: (022) 6703 0210 / 11 /12

Fort - Tel: (022) 3958 1887

Ghatkopar (E) - Tel: (022) 6799 3185 - 88

Malad (E) - Tel: (022) 2880 4440

Kandivali - Tel: (022) 4245 1300

Malad (Natraj Market) - Tel:(022) 28803453 / 24

Masjid Bander - Tel: (022) 2345 5130 /1 / 8 / 42 /28

Mulund (W) - Tel: (022) 2562 2282

Nerul - Tel: (022) 2771 9012 - 17

Sion - Tel: (022) 3952 7891

Powai (E) - Tel: (022) 3952 5887

Thane (W) - Tel: (022) 2539 0786 / 0650 / 1

Vashi - Tel: (022) 2765 4749 / 2251

Vile Parle (W) - Tel: (022) 2610 2894 / 95

Wadala - Tel: (022) 2414 0607 / 08

Agra - Tel: (0562) 4037200

Ahmedabad (Kalupur) - Tel: (079) 3041 4000 / 01

Ahmedabad (Maninagar) - Tel: (079) 3981 7430 / 1

Ajmer - Tel: (0145) 3941 3940

Alwar - Tel: (0144) 3941 3940 / 99833 60006

Ahmeda. (Bapu Nagar) - Tel : (079) 3091 6900 - 02

Ahmeda. (Gurukul) - Tel: (079) 3011 0800 / 01

Ahmedabad (C. G. Road) - Tel: (079) 4021 4023

Ahmedabad (Sabarmati) - Tel : (079) 3091 6100 / 01

Ahmedabad (Satellite) - Tel: (079) 4000 1000

Ahmedabad (Shahibaug) -Tel: (079)3091 6800 / 01

Amreli - Tel: (02792) 228 800/231039-42

Anand - Tel : (02692) 398 400 / 3

Amritsar - Tel: (0183) 3941 3940

Indore - Tel: (0731) 4232 100 / 31 / 40

Jaipur - (Rajapark) Tel: (0141) 3057 900 / 99833 40004

Gandhinagar - Tel: (079) 4010 1010 - 31

Gajuwaka - Tel: (0891) 3987 100 - 30

Faridabad - Tel: (0129) 3984 000

Gandhidham - Tel: (02836) 237 135

Gondal - Tel: (02825) 398 200

Ghaziabad - Tel: (0120) 3980 800

Gurgaon - Tel: (0124) 3050 700

Himatnagar - Tel: (02772) 241 008 / 241 346

Hyderabad - A S Rao Nagar Tel: (040) 4222 2070-5

Hubli - Tel: (0836) 4267 500 - 22

Indore - Tel: (0731) 3049 400

Bhopal - Tel :(0755) 3941 3940

Bikaner - Tel: (0151)3941 3940 / 98281 03988

Chandigarh - Tel: (0172) 3092 700

Deesa - Mobile: 97250 01160

Erode - Tel: (0424) 3982 600

Ankleshwar - Tel: (02646) 398 200

Baroda - Tel: (0265) 2226 103-04 / 6624 280

Baroda (Akota) - Tel: (0265) 2355 258 / 6499 286

Baroda (Manjalpur) - Tel: (0265) 6454280-3

Bhavnagar (Shastrinagar)- Mobile: 92275 32302

Bhavnagar - Tel: (0278) 3941 3940

Bengaluru - Tel: (080) 4072 0800 - 29

Ahmeda. (Ramdevnagar) - Tel : (079) 4024 3842 / 43

Jamnagar (Cross Word) - Tel: (0288) 2751 118

Jamnagar(Indraprashta) - Tel: (0288) 3941 3940

Jodhpur - Tel: (0291) 3941 3940 / 99280 24321

Junagadh - Tel : (0285) 3941 3940

Keshod - Tel: (02871) 234 027 / 233 967

Kolkata (N. S. Rd) - Tel: (033) 3982 5050

Kolkata (P. A. Shah Rd) - Tel: (033) 3001 5100

Mehsana - Tel: (02762) 645 291 / 92

Kota - Tel : (0744) 3941 3940

Mansarovar - Tel:(0141) 3057 700/99836 74600

Mysore - Tel: (0821) 4004 200 - 30

Nadiad - Tel : (0268) - 2527 230 / 34

New Delhi (Nehru Place) - Tel: (011) 3982 0900

New Delhi (Preet Vihar) - Tel: (011) 4310 6400

Palanpur - Tel: (02742) 308 060 - 63

Patel Nagar - Tel : (011) 45030 600

Patan - Tel: (02766) 222 306

Porbandar - Tel : (0286) 3941 3940

Noida - Tel : (0120) 4639 900 / 1 / 9

Nashik - Tel: (0253) 3011 500 / 1 / 11

New Delhi (Bhikaji Cama) - Tel: (011) 41659711

New Delhi (Lawrence Rd.) - Tel: (011) 3262 8699 / 8799

New Delhi (Pitampura) - Tel: (011) 47002380 / 84

Porbandar (Kuber Life Style) - Mob.-98242 53737

Pune (Camp) - Tel: (020) 3092 1800

Pune - Tel : (020) 3093 4400 / 3052 3217

Jamnagar (Moti Khawdi) - Tel: (0288) 2846 026

Jamnagar(Madhav Plaza) - Tel: (0288) 2665 708

Jalgaon - Tel: (0257) 2234 832

Pune (Aundh) - Tel: (020) 4104 1900

Mangalore - Tel: (0824) 3982 140

Kolhapur - Tel: (0231) 6615 962 / 3

Pune - Tel: (020) 6640 8300 / 3052 3217

Rajamundhry - Tel: (0883) 3982 200

Rajkot (Ardella) Tel.: (0281) 2926 568

Rajkot (University Rd.) - Tel: (0281) 2331 418

Rajkot - (Bhakti Nagar) Tel: (0281) 2361 935

Rajkot - (Indira circle) Tel : 99258 84848

Rajkot (Orbit Plaza) - Tel: (0281) 3983 485

Rajkot (Pedak Rd) - Tel: (0281) 3985 100

Rajkot (Ring Road)- Mobile: 99245 99393

Surat (Ring Road) - Tel : (0261) 3071 600

Surendranagar - Tel : (02752) 223305

Udaipur - (0294) 3981400

Valsad - Tel - (02632) 645 344 / 45

Vapi - Tel: (0260) 3088 210 / 211 / 2400 214

Varachha - (0261) 3091 500

Secunderabad - Tel : (040) 3093 2600

Surat (Mahidharpura) - Tel: (0261) 3092 900

Surat - (Parle Point) - Tel : (0261) 3091 400

Vijayawada - Tel :(0866) 3984 600

Rajkot (Star Chambers) - Tel : (0281)3981 200

Rajkot - (Star Chambers) - Tel : (0281) 2225 401-3

Salem - Tel: (0427) 3982 810

Warangal - Tel: (0870) 3982 200

Varanasi - Tel: (0542) 2221129, 3262431

Nagaur - Tel: (01582) 244 648

Documents

ACCUMULATE Powering Aheadsmartinvestor.business-standard.com/BSCMS/PDF/crompton greave… · Crompton Greaves Initiating Coverage Powering Ahead Crompton Greaves (CGL), a part of