About Crompton Greaves:

Demerger plan: Why Demerger?

To demerge consumer products business
To Be listed separately as a separate entity
Ensuring that existing shareholders hold 75% of shares

Decision:
CG has decided to fully demerge consumer products business
The Purpose:
The decision which has been taken would be leading to have better growth
opportunities in the following businesses
Power Industrial and Automation
Consumer Products
In order to create value to the shareholders
In order to gain flexible capital structure

What company ought to do during demerger process to its shareholder

Please read the article actually Im not able to form the proper reasons
http://www.cgglobal.com/pdfs/Demerger-CP/Fairness%20Opinion%20%20Merchant%20Banker.pdf
As soon as Crompton approved Demerger plan the following things have been
taken place
i) Profit in Q2 2014 has been raised by 20% (from 58cr to 70 cr.)
ii) Net sales were up by 6% from (from 3241cr to 3430cr)
ii) EBITDA margins has been improved from 161cr to 168cr
Crompton Greaves demergers impact:
watch these videos https://www.youtube.com/watch?v=i5ESJvYEfgc
https://www.youtube.com/watch?v=nbwd2ATEWh8