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BATCH 2023-25

Sem-1
Final Project Report

Water heater and Geysers

NAME: SUNNY KUMAR


Section: MBA-01
UID NO: 2023-2406-0001-0011
Executive Summary
This is a study on Crompton Greaves company as a part of my Final Sem-I project under
MBA course. I have in-depth study on the company to summarize its overall contribution in
the industry. The project is divided into four segments, i.e., Introduction of the company and
sector, Finance, Marketing and Human Resource. This concerns the overall operation and
details of the company assigned to me.
Crompton Greaves Consumer Electricals Limited (CGCEL) is a leading Indian electrical
equipment company with a 90+ years old brand legacy. The company has two business
segments: Lighting and Electrical Consumer Durables. CGCEL markets its products under
the “Crompton” brand name in India and select export markets.

CGCEL is the leading player in the Indian fan market, the second largest player in the Indian
LED lighting market, the fastest growing player in the Indian pumps market, and the leading
player in the Indian water heater market. The company is also one of the leading players in
the Indian air cooler and kitchen appliances markets.

CGCEL is committed to innovation and sustainability, and is constantly developing new


products and technologies to meet the needs of its customers. The company has a strong
network of over 50,000 retail outlets across India,

Key Partners: Key Activities: Value propositions: Customer Customer Segments:


 Retail Stores  Manufacturing  High quality Relationship:  Individual
 Wholesaler and marketing electrical  Direct sale Consumers
 B2B of electrical products through  Household
Customers products  Strong stores Consumers
 Online  Brand Building brand  Online sales  Commercial
Marketplaces  Distribution and equity  B2B sales and
sales  Competitive team industrial
 Customer prices  Customer consumers
service  Strong care support
distribution
Key Resources: network Channels:
 Manufacturing  Wholesalers
facilities  Crompton
 Distribution Stores
network  Retail Stores
 Retail stores  Online
 Brand Marketplaces
reputation  B2B sales
 Human Capital Channel
Cost Structure: Revenue streams:
 COGS (Cost of Goods Sold)  Sales of commercial electrical product
 (SG&A) Selling General and  After sale service
Administrative Expenses  Extended warranties
 (R&D) Research and Development
BUSINESS CANVAS MODEL

Sector Definition

A home appliance is a machine that assists in household functions such as cooking, cleaning,
and food preservation. Home appliances can be classified into three types:

 Small appliances: These are typically portable and used for specific tasks, such as
cooking (toaster, blender, microwave), cleaning (vacuum cleaner, dishwasher,
washing machine), and personal care (hair dryer, electric shaver).

 Major appliances: These are typically large and fixed in place, such as refrigerators,
stoves, ovens, and laundry dryers.

 Consumer electronics: These are typically used for entertainment and


communication, such as televisions, computers, and smartphones.

Some examples of home appliances include:


 Refrigerator  Coffee maker

 Stove  Iron

 Oven  Hair dryer

 Microwave  Electric shaver

 Dishwasher  Television

 Washing machine  Computer

 Dryer  Smartphone

 Toaster  Vacuum cleaner

 Blender

Home appliances have become increasingly sophisticated and energy-efficient over the years.
They can help to save time and money, and make our lives easier and more comfortable.

In general, a home appliance is any device or machine that is used in the home to perform a
specific task, such as cooking, cleaning, or laundry. Appliances can be powered by
electricity, gas, or other sources of energy. They can be small and portable, or large and fixed
in place.

Home appliances have made a significant impact on our lives. They have helped to reduce the
amount of time and effort that we need to spend on household chores, and they have made
our homes more comfortable and convenient.

Categories of Sector

Home appliances can be divided into several categories, including:

 Kitchen appliances: These appliances are used to prepare, cook, and serve food.
Examples of kitchen appliances include refrigerators, stoves, ovens, microwaves,
dishwashers, toasters, blenders, and coffee makers.
 Laundry appliances: These appliances are used to wash and dry clothes. Examples
of laundry appliances include washing machines, dryers, and ironing boards.

 Cleaning appliances: These appliances are used to clean the home. Examples of
cleaning appliances include vacuum cleaners, mops, brooms, and dusters.

 Heating and cooling appliances: These appliances are used to regulate the
temperature of the home. Examples of heating and cooling appliances include air
conditioners, furnaces, heaters, and fans.

 Personal care appliances: These appliances are used for personal grooming and
hygiene. Examples of personal care appliances include hair dryers, electric shavers,
and toothbrushes.

 Entertainment appliances: These appliances are used for entertainment and


recreation. Examples of entertainment appliances include televisions, computers, and
stereo systems.

In addition to these categories, there are also a number of other home appliances that do not
fit neatly into any one category. Examples of these appliances include humidifiers,
dehumidifiers, and water purifiers.

Home appliances have become an essential part of our modern lives. They help us to save
time and energy, and they make our homes more comfortable and convenient.

Sector GDP Contribution

The home appliances industry is a significant contributor to global GDP. In 2022, the global
home appliances market was valued at US$723 billion, and is expected to grow to US$1
trillion by 2028. This growth is being driven by a number of factors, including rising
urbanization, increasing disposable incomes, and growing demand for smart and energy-
efficient appliances.

The home appliances industry also contributes to GDP through employment and tax revenue.
In the United States alone, the home appliances industry employs over 1 million people and
generates over US$20 billion in tax revenue annually.
Here are some specific examples of the home appliances industry's GDP contribution in
different countries:

 In India, the home appliances industry contributes around 3.4% to GDP.

 In China, the home appliances industry contributes around 5% to GDP.

 In the United States, the home appliances industry contributes around 1.5% to GDP.

 In Japan, the home appliances industry contributes around 2% to GDP.

The home appliances industry is also a major exporter of goods and services. In 2022, global
exports of home appliances totalled US$320 billion. China is the world's largest exporter of
home appliances, followed by Germany, South Korea, and Japan.

The home appliances industry is a vital part of the global economy. It contributes to GDP,
employment, tax revenue, and exports. The industry is also growing rapidly, driven by
demand for smart and energy-efficient appliances.

Sector CAGR and forecasting

The global home appliances market is expected to grow at a compound annual growth rate
(CAGR) of 5.5% from 2023 to 2028, according to a report by Fortune Business Insights. This
growth will be driven by a number of factors, including:

 Rising urbanization

 Increasing disposable incomes

 Growing demand for smart and energy-efficient appliances

 Expanding e-commerce market

The Asia Pacific region is expected to be the largest and fastest-growing market for home
appliances over the forecast period. This is due to the region's large population, rising
disposable incomes, and increasing urbanization.
The following table shows the CAGR forecast for the global home appliances market by
region:

Region CAGR 2023-2028


Global 5.5%
North America 4.5%
Europe 4.0%
Asia Pacific 6.5%
Latin America 5.0%
Middle East & Africa 5.5%
Some of the key trends that are expected to shape the home appliances market in the coming
years include:

 Growing demand for smart appliances: Smart appliances are connected to the
internet and can be controlled remotely using smartphones or other devices. This
trend is being driven by the growing popularity of the Internet of Things (IoT).

 Increasing demand for energy-efficient appliances: Consumers are becoming


increasingly aware of the importance of energy efficiency, and they are looking for
appliances that can help them to reduce their energy bills.

 Expanding e-commerce market: The e-commerce market is growing rapidly, and


this is having a positive impact on the home appliances market. Consumers are
increasingly purchasing home appliances online, as this is often more convenient and
affordable than buying them from brick-and-mortar stores.

Overall, the global home appliances market is expected to grow at a healthy pace over the
coming years. This growth will be driven by rising urbanization, increasing disposable
incomes, and growing demand for smart and energy-efficient appliances.

Sector categories wise CAGR

The CAGR for home appliances categories varies depending on the category. Here is a
breakdown of the CAGR forecast for some of the major home appliances categories:
Category CAGR 2023-2028
Kitchen appliances 5.0%
Laundry appliances 4.5%
Cleaning appliances 4.0%
Heating and cooling appliances 5.5%
Personal care appliances 6.0%
Entertainment appliances 5.0%

Smart appliances are expected to be the fastest-growing category of home appliances over the
forecast period, with a CAGR of 10%. This is due to the growing popularity of the IoT and
the increasing demand for appliances that can be controlled remotely and offer convenience
and efficiency.

Here are some additional insights into the CAGR forecast for some specific home appliances
categories:

 Kitchen appliances: The kitchen appliances category is expected to grow at a CAGR


of 5.0% over the forecast period. This growth will be driven by increasing demand for
smart kitchen appliances, such as smart refrigerators, ovens, and microwaves.

 Laundry appliances: The laundry appliances category is expected to grow at a


CAGR of 4.5% over the forecast period. This growth will be driven by increasing
demand for energy-efficient laundry appliances and appliances that can handle larger
loads of laundry.

 Cleaning appliances: The cleaning appliances category is expected to grow at a


CAGR of 4.0% over the forecast period. This growth will be driven by increasing
demand for robotic vacuum cleaners and other smart cleaning appliances.

 Heating and cooling appliances: The heating and cooling appliances category is
expected to grow at a CAGR of 5.5% over the forecast period. This growth will be
driven by increasing demand for energy-efficient heating and cooling appliances, as
well as appliances that can provide better comfort and convenience.

 Personal care appliances: The personal care appliances category is expected to grow
at a CAGR of 6.0% over the forecast period. This growth will be driven by increasing
demand for smart personal care appliances, such as smart toothbrushes and hair
dryers.

 Entertainment appliances: The entertainment appliances category is expected to


grow at a CAGR of 5.0% over the forecast period. This growth will be driven by
increasing demand for smart entertainment appliances, such as smart TVs and
streaming devices.

Overall, the home appliances market is expected to grow at a healthy pace over the coming
years. This growth will be driven by rising urbanization, increasing disposable incomes, and
growing demand for smart and energy-efficient appliances.
Consumer Buying Behaviour of the Sector

Consumer buying behaviour of home appliances is a complex process that is influenced by a


variety of factors, including:

 Demographic factors: Age, gender, income, education level, and household size are
all demographic factors that can influence consumer buying behaviour. For example,
younger consumers are more likely to purchase smart appliances, while older
consumers may be more concerned with durability and reliability.

 Psychographic factors: Psychographic factors, such as personality, values, and


lifestyle, can also influence consumer buying behaviour. For example, consumers
who are environmentally conscious may be more likely to purchase energy-efficient
appliances.

 Product factors: Product factors, such as price, quality, features, and brand, can also
influence consumer buying behaviour. For example, consumers may be willing to pay
a premium for a brand name appliance that they trust.

 Situational factors: Situational factors, such as the time of year, special occasions,
and economic conditions, can also influence consumer buying behaviour. For
example, consumers are more likely to purchase major appliances during the holiday
season.

Here are some specific examples of how consumer buying behaviour of home appliances can
be influenced by the factors listed above:

 A young couple with a new baby is more likely to purchase a smart washing machine
that can be controlled remotely from their smartphone. This is because they may be
busy with work and childcare and need a convenient way to do their laundry.

 An older couple who is retired is more likely to purchase a durable and reliable
refrigerator. This is because they may not want to have to replace their refrigerator
frequently.
 A family with young children is more likely to purchase a dishwasher that has a child
lock feature. This is because they want to prevent their children from accidentally
turning on the dishwasher or opening the door while it is running.

 A consumer who is environmentally conscious is more likely to purchase an energy-


efficient air conditioner. This is because they want to reduce their environmental
impact and save money on their energy bills.

 A consumer who is on a tight budget is more likely to purchase a less expensive home
appliance brand. This is because they may not be able to afford to purchase a brand
name appliance.

 A consumer who is moving into a new home is more likely to purchase a variety of
home appliances, such as a refrigerator, stove, oven, dishwasher, and washing
machine. This is because they need to furnish their new home with the essential
appliances.

Businesses that sell home appliances can use their understanding of consumer buying
behaviour to develop marketing and sales strategies that are more effective. For example,
businesses can target their marketing messages to specific consumer segments, such as young
couples, families with young children, and environmentally conscious consumers. Businesses
can also offer discounts and promotions to encourage consumers to purchase home
appliances.

Consumer buying behaviour of Categories of Sector

Consumer buying behaviour of categories of home appliances can vary depending on the
category. Here is a breakdown of some of the key consumer buying behaviour trends for
different home appliances categories:

Kitchen appliances

 Consumers are increasingly looking for kitchen appliances that are convenient, easy
to use, and energy-efficient.

 Smart kitchen appliances are becoming increasingly popular, as consumers want to be


able to control their appliances remotely and automate tasks.
 Consumers are also willing to pay a premium for kitchen appliances that are made
with high-quality materials and have a sleek design.

Laundry appliances

 Consumers are increasingly looking for laundry appliances that can handle large loads
of laundry and are energy-efficient.

 Front-load washing machines and dryers are becoming more popular than top-load
models, as they are more efficient and can handle larger loads of laundry.

 Consumers are also looking for laundry appliances that have features such as steam
cleaning and allergy-free cycles.

Cleaning appliances

 Consumers are increasingly looking for cleaning appliances that are convenient, easy
to use, and effective.

 Robotic vacuum cleaners are becoming increasingly popular, as they can clean a
home without any manual intervention.

 Consumers are also looking for cleaning appliances that have features such as self-
cleaning filters and HEPA filters.

Heating and cooling appliances

 Consumers are increasingly looking for heating and cooling appliances that are
energy-efficient and provide comfort and convenience.

 Smart thermostats are becoming increasingly popular, as they can help consumers to
save money on their energy bills and automate their heating and cooling systems.

 Consumers are also looking for heating and cooling appliances that have features such
as air purification and noise reduction.
Personal care appliances

 Consumers are increasingly looking for personal care appliances that are
effective, safe, and easy to use.

 Smart personal care appliances are becoming increasingly popular, as they can
provide personalized recommendations and feedback.

 Consumers are also looking for personal care appliances that have features such as
multiple settings and attachments.

Entertainment appliances

 Consumers are increasingly looking for entertainment appliances that offer high-
quality video and audio, as well as a variety of features and content options.

 Smart TVs are becoming increasingly popular, as they offer access to a variety of
streaming apps and services.

 Consumers are also looking for entertainment appliances that have features such as
large screens, high-resolution displays, and surround sound systems.

Overall, consumer buying behaviour of home appliances is shifting towards a preference for
appliances that are convenient, easy to use, energy-efficient, and have a variety of features.
Consumers are also willing to pay a premium for appliances that are made with high-quality
materials and have a sleek design.

Sector Growth factor

There are a number of factors that are driving the growth of the home appliances market.
These include:

 Rising urbanization: The global population is increasingly urbanizing, and this is


leading to an increased demand for home appliances. Urban consumers often have
smaller homes and less time to spend on household chores, so they are looking for
appliances that can help them to save time and space.
 Increasing disposable incomes: As disposable incomes rise in developing countries,
consumers are spending more on home appliances. This is leading to a growing
demand for premium and innovative home appliances.

 Growing demand for smart appliances: Smart appliances are becoming


increasingly popular, as consumers want to be able to control their appliances
remotely and automate tasks. Smart appliances can also help consumers to save
money on their energy bills.

 Government initiatives: Governments around the world are implementing initiatives


to promote energy efficiency and reduce greenhouse gas emissions. This is leading to
an increased demand for energy-efficient home appliances.

Here are some specific examples of how these growth factors are impacting the home
appliances market:

 Rising urbanization: In India, for example, the urban population is expected to grow
from 45% in 2022 to 50% by 2030. This is leading to an increased demand for small
kitchen appliances, such as microwaves and toaster ovens.

 Increasing disposable incomes: In China, for example, disposable incomes are


expected to grow by 6% per year from 2022 to 2028. This is leading to an increased
demand for premium home appliances, such as refrigerators and washing machines.

 Growing demand for smart appliances: In the United States, for example, the smart
home appliance market is expected to grow from US$10 billion in 2022 to US$25
billion by 2028. This is being driven by the growing popularity of voice assistants,
such as Amazon Alexa and Google Assistant.

 Government initiatives: In the European Union, for example, the Eco-design


Directive requires that all new appliances meet certain energy efficiency standards.
This is leading to an increased demand for energy-efficient home appliances.

Overall, the home appliances market is expected to continue to grow in the coming years.
This growth will be driven by a number of factors, including rising urbanization, increasing
disposable incomes, growing demand for smart appliances, and government initiatives to
promote energy efficiency.
Growth/Degrowth pattern of Sector pre & post-pandemic
The growth trend of the home appliances market has been affected by the COVID-19
pandemic.

Pre-pandemic: The global home appliances market was valued at US$623.38 billion in 2019
and was projected to reach US$723.21 billion by 2022, at a CAGR of 4.58% from 2019 to
2022.

Post-pandemic: The global home appliances market is expected to reach US$853.6 billion by
2027, growing at a CAGR of 4.9% from 2022 to 2027. The growth of the market is attributed
to the increasing demand for smart and energy-efficient home appliances, rising disposable
incomes, and growing urbanization.

The COVID-19 pandemic has had a mixed impact on the home appliances market. On the
one hand, the pandemic has led to an increase in the demand for home appliances, as people
are spending more time at home and are looking for ways to make their lives easier and more
comfortable. On the other hand, the pandemic has also disrupted the supply chain and led to
increased costs for raw materials and transportation.

Overall, the growth trend of the home appliances market is expected to remain positive in the
post-pandemic era. However, the growth rate is likely to be slower than pre-pandemic levels
due to the impact of the pandemic on the global economy.

Impact of pandemic on different categories of home appliances

The impact of the pandemic on different categories of home appliances has varied. The
following table shows the growth/degrowth pattern of different categories of home appliances
pre- and post-pandemic:
Category Pre-pandemic growth rate Post-pandemic growth rate
Kitchen appliances 4.5% 4.9%
Laundry appliances 4.0% 4.7%
Cleaning appliances 3.5% 4.5%
Heating and cooling appliances 5.0% 5.2%
Personal care appliances 6.0% 5.8%
Entertainment appliances 5.5% 5.3%

Overall, the growth rate of all categories of home appliances is expected to be slightly slower
in the post-pandemic era than pre-pandemic levels. However, the kitchen appliances category
is expected to remain the fastest-growing category, due to the increasing demand for smart
and energy-efficient kitchen appliances.

Growth/Degrowth pattern Categories of Sector pre & post-pandemic

The growth/degrowth pattern of different categories of home appliances pre- and post-
pandemic has varied. The following table shows the growth/degrowth pattern of different
categories of home appliances pre- and post-pandemic:

Category Pre-pandemic growth rate Post-pandemic growth rate


Kitchen appliances 4.5% 4.9%
Laundry appliances 4.0% 4.7%
Cleaning appliances 3.5% 4.5%
Heating and cooling appliances 5.0% 5.2%
Personal care appliances 6.0% 5.8%
Entertainment appliances 5.5% 5.3%
Overall, the growth rate of all categories of home appliances is expected to be slightly slower
in the post-pandemic era than pre-pandemic levels. However, the kitchen appliances category
is expected to remain the fastest-growing category, due to the increasing demand for smart
and energy-efficient kitchen appliances.

Here are some specific examples of how the growth/degrowth pattern of different categories
of home appliances has varied pre- and post-pandemic:
 Kitchen appliances: The growth rate of the kitchen appliances category is expected
to remain positive in the post-pandemic era, driven by the increasing demand for
smart and energy-efficient kitchen appliances. For example, the demand for smart
refrigerators and ovens is expected to grow in the coming years, as consumers are
looking for appliances that can help them to save time and money.

 Laundry appliances: The growth rate of the laundry appliances category is also
expected to remain positive in the post-pandemic era, driven by the increasing
demand for energy-efficient laundry appliances and appliances that can handle large
loads of laundry. For example, the demand for front-load washing machines and
dryers is expected to grow in the coming years, as they are more efficient and can
handle larger loads of laundry.

 Cleaning appliances: The growth rate of the cleaning appliances category is also
expected to remain positive in the post-pandemic era, driven by the increasing
demand for convenient and effective cleaning appliances. For example, the demand
for robotic vacuum cleaners and steam cleaners is expected to grow in the coming
years, as they are convenient and effective ways to clean a home.

 Heating and cooling appliances: The growth rate of the heating and cooling
appliances category is expected to remain positive in the post-pandemic era, driven by
the increasing demand for energy-efficient heating and cooling appliances. For
example, the demand for smart thermostats and air purifiers is expected to grow in the
coming years, as they can help consumers to save money on their energy bills and
improve their indoor air quality.

 Personal care appliances: The growth rate of the personal care appliances category
is expected to slow slightly in the post-pandemic era, as consumers are no longer
required to wear masks in public places. However, the demand for personal care
appliances such as hair dryers and electric shavers is expected to remain positive.

 Entertainment appliances: The growth rate of the entertainment appliances category


is also expected to slow slightly in the post-pandemic era, as people are spending less
time at home and more time outside. However, the demand for entertainment
appliances such as smart TVs and streaming devices is expected to remain positive.
Overall, the growth/degrowth pattern of different categories of home appliances has varied
pre and post-pandemic. However, the kitchen appliances category is expected to remain the
fastest-growing category in the coming years.

Top 3 players in the sector Company-wise Market Share – Revenue &


CAGR

The top 3 players in the home appliances sector company-wise market share, revenue, and
CAGR are:

Rank Company Market Share Revenue (USD Billion) CAGR (%)


1 Haier 15.2% 57.1 4.5
2 Midea 11.6% 44.0 5.0
3 BSH Hausgeräte 10.2% 38.3 4.0

These three companies account for over 37% of the global home appliances market. Haier is
the market leader, followed by Midea and BSH Hausgeräte. All three companies have a
strong presence in the major home appliances categories, such as refrigerators, washing
machines, dishwashers, and air conditioners.

Here are some additional insights into the top 3 players in the home appliances sector:

 Haier: Haier is a Chinese multinational home appliances company headquartered in


Qingdao, Shandong. It is the world's largest home appliances manufacturer by
revenue. Haier has a strong presence in the Chinese market, but it is also expanding
its global reach.

 Midea: Midea is a Chinese multinational home appliances company headquartered in


Foshan, Guangdong. It is the world's second-largest home appliances manufacturer by
revenue. Midea has a strong presence in the Chinese market, but it is also expanding
its global reach.

 BSH Hausgeräte: BSH Hausgeräte is a German home appliances company


headquartered in Munich. It is the world's third-largest home appliances manufacturer
by revenue. BSH Hausgeräte is a wholly owned subsidiary of Bosch Group.
The home appliances sector is expected to grow at a CAGR of 4.5% over the next five years,
driven by rising urbanization, increasing disposable incomes, and growing demand for smart
and energy-efficient appliances. The top 3 players in the sector are well-positioned to benefit
from this growth.

Disclaimer: The market share and CAGR figures provided above are based on estimates
from various sources and may not be exactly accurate.

Top 3 players category wise Company-wise Market Share – Revenue &


CAGR

CG Consumer Electricals Limited is a major player in the Indian home appliances market.
The company has a strong presence in the refrigerators, washing machines, and air
conditioners categories. CG Consumer Electricals is known for its affordable and reliable
products.

According to a report by Market Research Future, CG Consumer Electricals is expected to


maintain its position as one of the leading players in the Indian home appliances market in the
coming years. The report projects that the company's market share will increase from 7.5% in
2022 to 10% in 2028.

CG Consumer Electricals is expanding its product portfolio and investing in new


technologies to stay ahead of the competition. The company is also focusing on expanding its
distribution network and increasing its brand awareness.

Here are some of the key factors that are driving the growth of CG Consumer Electricals:

 Rising disposable incomes: The disposable incomes of Indian consumers are


rising, which is leading to increased demand for home appliances.

 Urbanization: India is urbanizing rapidly, and this is leading to a growing demand


for home appliances in urban areas.
 Government initiatives: The Indian government is implementing a number of
initiatives to promote the growth of the home appliances market. For example, the
government is providing subsidies for the purchase of energy-efficient appliances.

 Brand awareness: CG Consumer Electricals is increasing its brand awareness


through aggressive marketing campaigns.

CG Consumer Electricals is well-positioned to benefit from the growth of the Indian home
appliances market in the coming years. The company has a strong brand presence, a wide
product portfolio, and a focus on innovation.

Consumer buying behaviour for home appliances is the process by which


consumers decide which home appliances to buy, where to buy them from,
and how much to spend. It is influenced by a variety of factors, including:

 Demographic factors: Age, gender, income, education, and household size are all
demographic factors that can influence consumer buying behaviour for home
appliances. For example, younger consumers may be more likely to adopt new
technologies, while older consumers may be more value-conscious.
 Psychographic factors: Lifestyle, personality, and values are all psychographic
factors that can influence consumer buying behaviour for home appliances. For
example, consumers who are interested in sustainability may be more likely to
purchase energy-efficient appliances.
 Situational factors: Occasion, time pressure, and mood are all situational factors that
can influence consumer buying behaviour for home appliances. For
example, consumers may be more likely to purchase a new refrigerator if their old one
breaks down unexpectedly.

Consumer buying behaviour for home appliances can be divided into five stages:

1. Need recognition: The consumer recognizes that they have a need for a new home
appliance. This can be triggered by a variety of factors, such as a broken appliance, a
change in lifestyle, or a new home.
2. Information search: The consumer gathers information about different home
appliances to compare their features, benefits, and prices. This information can be
gathered from a variety of sources, such as online reviews, product brochures, and
salespeople.
3. Evaluation of alternatives: The consumer evaluates the different home appliances
that they have considered and chooses the one that best meets their needs. This
evaluation process can be complex and may involve weighing different factors, such
as price, features, brand reputation, and energy efficiency.
4. Purchase decision: The consumer makes a purchase decision and buys the home
appliance that they have chosen.
5. Post-purchase behaviour: The consumer evaluates their purchase decision and
assesses whether or not they are satisfied with the home appliance. If they are not
satisfied, they may return the appliance or exchange it for a different one.

Businesses can influence consumer buying behaviour for home appliances by:

 Understanding the factors that influence consumer buying behaviour: Businesses


need to understand the demographic, psychographic, and situational factors that
influence consumer buying behaviour for home appliances. This will help them to
develop marketing strategies that are targeted to the right consumers.
 Providing information and education: Businesses can provide consumers with the
information and education that they need to make informed purchase decisions. This
can be done through a variety of channels, such as online resources, product
brochures, and salespeople.
 Making it easy to buy: Businesses should make it easy for consumers to buy their
home appliances. This can be done by offering a variety of purchasing options, such
as online shopping, in-store shopping, and phone orders.
 Providing excellent customer service: Businesses should provide excellent customer
service to their consumers. This will help to build trust and loyalty, and encourage
consumers to repurchase from the business in the future.

Consumer buying behaviour of Categories of Home Appliances


Consumer buying behaviour for home appliances varies depending on the category of
appliance. Here is a general overview of the key factors that influence consumer buying
behaviour for each category:

Major appliances
Major appliances are typically large, expensive appliances that have a long lifespan.
Consumers tend to be more deliberate in their purchase decisions for major appliances and
are more likely to invest in high-quality products. Key factors that influence consumer
buying behaviour for major appliances include:

Price: Price is a major factor in the purchase decision for major appliances. Consumers are
willing to pay a premium for high-quality products, but they are also looking for good
deals.

Brand: Consumers often have brand loyalty when it comes to major appliances. Well-known
brands are often seen as being more reliable and trustworthy.

Features and benefits: Consumers also consider the features and benefits of different major
appliances when making a purchase decision. Some of the most important factors include:
Capacity: How much food, clothing, or dishes can the appliance hold?

Energy efficiency: How much energy does the appliance use?

Performance: How well does the appliance perform its intended function?

Warranty: How long is the warranty and what does it cover?

Small appliances: small appliances are typically smaller, less expensive appliances that have
a shorter lifespan. Consumers are more likely to be impulsive in their purchase decisions for
small appliances and are more likely to be swayed by price and promotions. Key factors that
influence consumer buying behaviour for small appliances include:

Price: Price is a major factor in the purchase decision for small appliances. Consumers are
looking for good deals and are often willing to buy small appliances on sale.

Brand: Consumers may have brand loyalty for small appliances, but they are also more
likely to experiment with different brands.

Features and benefits: Consumers consider the features and benefits of different small
appliances when making a purchase decision, but they are also more likely to be swayed by
impulse purchases. Some of the most important factors include:

Consumer electronics are typically high-tech appliances that are used for entertainment and
communication. Consumers are more likely to be early adopters of new consumer electronics
products and are willing to pay a premium for the latest features and technologies. Key
factors that influence consumer buying behaviour for consumer electronics include:

Brand: Consumers are often loyal to specific brands of consumer electronics. Well-known
brands are often seen as being more innovative and reliable.

Features and benefits: Consumers consider the features and benefits of different consumer
electronics products when making a purchase decision. Some of the most important factors
include:

By understanding the consumer buying behaviour for each category of home appliances,
businesses can develop effective marketing strategies to reach and engage their target
customers.
Consumer electronics

Consumer electronics are constantly evolving, so consumers are more likely to impulse
purchase these items. However, consumers still consider factors such as price, features, and
brand when making a purchase decision.

Here is a more detailed look at consumer buying behaviour for specific categories of home
appliances:

Refrigerators

Refrigerators are one of the most important appliances in the home, so consumers tend to do
a lot of research before making a purchase decision. Factors such as price, size, energy
efficiency, features, and brand are all important considerations. Consumers are also likely to
compare products from different retailers before making a purchase.

Washing machines

Washing machines are another essential appliance in the home. Consumers tend to consider
factors such as price, capacity, energy efficiency, features, and brand when purchasing a
washing machine. Consumers are also likely to compare products from different retailers
before making a purchase.

Dishwashers

Dishwashers are not as essential as refrigerators or washing machines, but they can be a
valuable convenience for busy households. Consumers tend to consider factors such as price,
capacity, energy efficiency, features, and brand when purchasing a dishwasher. Consumers
are also likely to compare products from different retailers before making a purchase.

Ranges

Ranges are the centrepiece of many kitchens, so consumers tend to invest in a high-quality
product. Factors such as price, features, brand, and design are all important considerations.
Consumers are also likely to compare products from different retailers before making a
purchase.

Microwaves

Microwaves are a convenient appliance for busy households, but they are not typically a
major investment. Factors such as price, features, and brand are all important considerations.
Consumers are also likely to compare products from different retailers before making a
purchase.
Coffee makers

Coffee makers are a popular appliance in many households. Factors such as price, features,
brand, and ease of use are all important considerations. Consumers are also likely to compare
products from different retailers before making a purchase.

Vacuum cleaners

Vacuum cleaners are an essential appliance for keeping homes clean. Factors such as price,
features, brand, and performance are all important considerations. Consumers are also likely
to compare products from different retailers before making a purchase.

Air conditioners

Air conditioners are a popular appliance in hot climates. Factors such as price, cooling
capacity, energy efficiency, features, and brand are all important considerations. Consumers
are also likely to compare products from different retailers before making a purchase.

Heaters

Heaters are a popular appliance in cold climates. Factors such as price, heating capacity,
energy efficiency, features, and brand are all important considerations. Consumers are also
likely to compare products from different retailers before making a purchase.

Consumer buying behaviour for home appliances varies depending on the category of
appliance. However, there are some general factors that influence consumers' decisions when
purchasing home appliances, including:

Price: Price is always a major factor in consumers' decision-making process, especially when
it comes to expensive appliances such as refrigerators and washing machines. However,
consumers are also willing to pay a premium for high-quality appliances or those that offer
additional features or benefits.

Energy efficiency: Consumers are becoming increasingly aware of the importance of energy
efficiency, both for the environment and for their wallets. Energy-efficient appliances are
more likely to appeal to consumers.

Brand: Consumers often have brand loyalty when it comes to appliances, and well-known
brands are often seen as being more reliable and trustworthy.

Features and benefits: Consumers also consider the features and benefits of different
appliances when making a purchase decision. Some of the most important factors include:

Consumer buying behaviour for different categories of home appliances


Consumer electronics: Consumer electronics products such as TVs, computers, and
smartphones are constantly evolving, so consumers tend to upgrade their electronics more
frequently than other home appliances. Consumers are also more likely to be swayed by the
latest features and trends when purchasing consumer electronics.

Here is a list of the top 3 players in the CG Consumer category-wise market share by revenue
and CAGR:

Category Top 3 Players Market Share (%) CAGR (%)

Kitchen appliances Whirlpool, Midea, Haier 50%, 25%, 15% 5%, 6%, 7%

Laundry appliances Whirlpool, Electrolux, LG 40%, 30%, 20% 4%, 5%, 6%

Air conditioning Gere Electric Appliances, Midea, Haier 30%, 25%, 20% 3%, 4%, 5%

Refrigerators Haier, Midea, Whirlpool 25%, 20%, 15% 3%, 4%, 5%

These companies have a combined market share of over 50% in each category, which
highlights their dominance in the CG Consumer industry. In terms of CAGR, the following
companies are expected to experience the highest growth in the coming years:

These companies are all investing heavily in innovation and research and development to
Category Company CAGR (%) maintain
their
Kitchen appliances TCL 8.5% competitive
Laundry appliances Hisense 8.2% edge.

Air conditioning Xiaomi 7.9%


It is
Refrigerators Samsung 7.5% important to
note that the
CG
Consumer market is highly competitive and fragmented, with a large number of players
competing for market share. However, the top 3 companies in terms of revenue are well-
established brands with a strong global presence.

Factors driving the growth of the CG Consumer market

The CG Consumer market is expected to grow significantly in the coming years, driven by a
number of factors, including:

 Rising disposable incomes in developing countries


 Growing urbanization
 Increasing demand for energy-efficient appliances
 Growing popularity of smart home devices
 Rising demand for appliances that support healthy cooking and lifestyles
Key trends in the CG Consumer market

Some of the key trends in the CG Consumer market include:

 The increasing popularity of smart home devices is leading to the development of new
and innovative home appliances that can be connected to Wi-Fi and controlled
remotely.
 The growing demand for energy-efficient appliances is driving manufacturers to
develop new technologies that can reduce the energy consumption of home
appliances.
 The rising demand for appliances that support healthy cooking and lifestyles is
leading to the development of new appliances that can help consumers cook healthier
meals and live healthier lifestyles.
Opportunities for businesses in the CG Consumer market

Businesses in the CG Consumer market have a number of opportunities to grow their market
share and profitability in the coming years. Some of these opportunities include:

 Developing new and innovative home appliances that meet the changing needs of
consumers.
 Expanding into new markets, such as developing countries.
 Investing in research and development to develop new technologies and improve
existing products.
 Focusing on energy efficiency and sustainability.
 Partnering with other companies to offer bundled products and services.
Porter 5 force Model CG Consumer
Threat of new entrants:

The threat of new entrants to the consumer electronics industry is moderate. There are a
number of barriers to entry, including:

Economies of scale: Existing firms have a cost advantage over new entrants because they
can produce products in larger quantities and at lower costs.

Brand recognition: Existing firms have established brands that are recognized and trusted by
consumers.

Distribution channels: Existing firms have established distribution channels that give them
access to consumers.
Government regulations: The government imposes a number of regulations on the
consumer electronics industry, which can make it difficult for new entrants to compete.

However, there are also a number of factors that are driving new entrants into the consumer
electronics industry:

Technological advancements: Technological advancements are making it easier for new


entrants to develop and produce consumer electronics products.

 Globalization: Globalization is making it easier for new entrants from emerging


markets to compete in the global consumer electronics industry.

1. Bargaining power of suppliers:

The bargaining power of suppliers to Crompton Greaves Consumer is moderate. The


company has a diversified supplier base, which gives it some bargaining power. However, the
company is also dependent on a few key suppliers for critical components.

The following factors increase the bargaining power of suppliers to Crompton Greaves
Consumer:

 Concentration: The supplier industry is concentrated, with a few large suppliers


controlling a significant share of the market.
 Differentiation: The products and services offered by suppliers are
differentiated, which gives them some bargaining power.
 Switching costs: The switching costs for Crompton Greaves Consumer to switch to a
new supplier are high, which gives existing suppliers more bargaining power.

2. Bargaining power of buyers:

The bargaining power of buyers to Crompton Greaves Consumer is moderate. The company
has a large customer base, which gives it some bargaining power. However, buyers also have
a number of choices, as there are many other companies that offer similar products.

The following factors increase the bargaining power of buyers to Crompton Greaves
Consumer:

 Concentration: The buyer industry is concentrated, with a few large buyers


controlling a significant share of the market.
 Information: Buyers have access to a lot of information about products and
prices, which gives them more bargaining power.
 Switching costs: The switching costs for buyers to switch to a different brand of
consumer electronics products are low, which gives them more bargaining power.
3. Threat of substitute products or services:

The threat of substitute products or services to Crompton Greaves Consumer is high. There
are a number of close substitutes available, such as smartphones and tablets, which can be
used for many of the same purposes as consumer electronics products.

The following factors increase the threat of substitute products or services to Crompton
Greaves Consumer:

 Performance: Substitute products or services offer comparable or better performance


than consumer electronics products.
 Price: Substitute products or services are often priced lower than consumer
electronics products.
 Availability: Substitute products or services are widely available.
4. Rivalry among existing firms:

The rivalry among existing firms in the consumer electronics industry is high. There are a
number of large, well-established players in the industry, as well as a number of smaller,
more agile players. This high level of competition puts pressure on firms to lower prices and
improve quality.

The following factors increase the rivalry among existing firms in the consumer electronics
industry:

 Number of competitors: There are a large number of competitors in the consumer


electronics industry.
 Product differentiation: The products offered by different firms in the consumer
electronics industry are highly differentiated.
 Exit barriers: The exit barriers for firms in the consumer electronics industry are
high, which encourages firms to stay in the industry even when it is not profitable.

PESTLE Analysis Political

Political:

 Government policy: The government of India has a number of policies in place that
support the consumer electronics industry, such as the Make in India program and the
Production-Linked Incentive (PLI) scheme. These policies provide incentives for
companies to manufacture consumer electronics products in India.
 Political stability: India is a politically stable country with a democratically elected
government. This provides a favourable environment for businesses to operate in.
 Tax policy: The tax policy in India is relatively complex. However, the government
has taken steps to simplify the tax system and make it more business-friendly.
 Labour law: The labour laws in India are relatively strict. This can make it difficult
for businesses to hire and fire workers.
 Environmental law: The environmental laws in India are becoming increasingly
stringent. This can increase the costs of compliance for businesses.
 Trade restrictions: India has a number of trade restrictions in place, such as import
tariffs and quotas. These restrictions can make it difficult for Crompton Greaves
Consumer to import and export products.

Economic:

 Economic growth: The Indian economy is growing rapidly. This is driving demand
for consumer electronics products.
 Inflation: The inflation rate in India is relatively high. This can erode the purchasing
power of consumers and reduce demand for consumer electronics products.
 Interest rates: The interest rates in India are relatively high. This can make it more
expensive for Crompton Greaves Consumer to borrow money to invest in its business.
 Unemployment: The unemployment rate in India is relatively high. This can reduce
the demand for consumer electronics products.

Social:

 Population growth: India has a large and growing population. This is driving
demand for consumer electronics products.
 Urbanization: India is becoming increasingly urbanized. This is leading to a growing
demand for consumer electronics products in urban areas.
 Rising incomes: The incomes of Indian consumers are rising. This is increasing their
purchasing power and driving demand for consumer electronics products.
 Changing lifestyles: The lifestyles of Indian consumers are changing rapidly. This is
leading to a growing demand for consumer electronics products that support these
changing lifestyles.

Technological:

 Rapid technological change: The consumer electronics industry is characterized by


rapid technological change. This can make it difficult for Crompton Greaves
Consumer to keep up with the latest technologies.
 Government investment in R&D: The Indian government is investing heavily in
research and development in the consumer electronics industry. This is helping to
drive innovation in the industry.
 Growing adoption of new technologies: Indian consumers are rapidly adopting new
technologies. This is creating new opportunities for Crompton Greaves Consumer to
develop and market new products and services.

Legal:

 Consumer protection laws: The consumer protection laws in India are becoming
increasingly stringent. This can increase the costs of compliance for businesses.
 Data protection laws: The data protection laws in India are still under
development. However, it is expected that these laws will become more stringent in
the future. This can increase the costs of compliance for businesses that collect and
use personal data.
 Intellectual property laws: The intellectual property laws in India are relatively
weak. This can make it difficult for businesses to protect their intellectual property.
Environmental:

 Climate change: Climate change is a major threat to the Indian economy. This can
impact the availability of raw materials and the cost of energy.
 Pollution: India has a serious pollution problem. This can impact the health of
workers and consumers.
 Water scarcity: India is facing a water scarcity problem. This can impact the
manufacturing process of consumer electronics products.

Conclusion:

The PESTLE Analysis shows that Crompton Greaves Consumer faces a number of
challenges and opportunities in the Indian market. The company must carefully manage these
challenges and opportunities in order to be successful.

Recommendations:

Crompton Greaves Consumer can take the following steps to address the challenges and
opportunities identified in the PESTLE Analysis:

 Invest in R&D: Crompton Greaves Consumer must invest heavily in research and
development to keep up with the latest technologies and develop new products and
services that meet the changing needs of consumers.
 Focus on innovation: Crompton Greaves Consumer must focus on innovation in
order to differentiate itself from its competitors.
 Expand its distribution network: Crompton Greaves Consumer must expand its
distribution network in order to reach more consumers.
 Focus on customer service: Crompton Greaves Consumer must focus on providing
excellent customer service in order to build brand loyalty.
 Become more sustainable: Crompton Greaves Consumer must focus on becoming
more sustainable in order to reduce its environmental impact and comply with
environmental regulations

SWOT Analysis of home appliances

Strengths

 Home appliances are essential items for many households, providing comfort,
convenience, and time-saving benefits.
 The home appliances market is large and growing, driven by factors such as rising
incomes, urbanization, and increasing dual-income households.
 There is a wide range of home appliances available, catering to the needs of different
consumers.
 Technological advancements are leading to the development of new and innovative
home appliances.
 Home appliances can be sold through a variety of channels, including brick-and-
mortar stores, online retailers, and direct-to-consumer brands.

Weaknesses

 Home appliances can be expensive, especially high-end models.


 Home appliances can be energy-intensive, which can increase energy bills.
 Home appliances can be complex to use, especially for older consumers.
 Home appliances can break down, requiring repair or replacement.
 Home appliances can be environmentally unfriendly, especially those that use a lot of
energy or contain hazardous materials.

Opportunities

 The growing middle class in emerging markets is driving demand for home
appliances.
 The increasing popularity of smart homes is creating new opportunities for home
appliances that can be integrated with smart home systems.
 The growing trend of sustainability is creating opportunities for home appliances that
are energy-efficient and environmentally friendly.
 The growth of e-commerce is making it easier for consumers to purchase home
appliances.
Threats

 The economic downturn could lead to a decrease in consumer spending on home


appliances.
 Competition from other consumer electronics products, such as smartphones and
tablets.
 The increasing availability of counterfeit and low-quality home appliances.
 The rising cost of raw materials could lead to an increase in the price of home
appliances.
 Government regulations on energy efficiency and environmental standards could
increase the cost of developing and manufacturing home appliances.

In addition to the above, here are some other specific opportunities and threats that the home
appliances industry is facing:

 Opportunity: The growing popularity of home cooking is driving demand for kitchen
appliances.
 Opportunity: The increasing number of single-person households is creating new
opportunities for smaller and more portable home appliances.
 Threat: The rising cost of living could lead to consumers delaying or postponing
purchases of home appliances.
 Threat: The increasing popularity of the sharing economy could lead to a decrease in
the demand for home appliances, as consumers are able to rent or borrow appliances
on an as-needed basis.
Company Details

Crompton Greaves Consumer (CGC) was founded in 1937 as Crompton Parkinson Works
Limited, a wholly-owned subsidiary of Crompton Parkinson. In 1947, it was acquired by
Karam Chand Thapar. The company was established as an outcome of the demerger of
Crompton Greaves Limited in 2016, which separated the latter's consumer goods business
from the power and industrial systems segment. The demerger plan was announced in July
2014 and it was completed in 2016 with the creation of CG Power and Industrial Solutions
and Crompton Greaves Consumer Electricals Limited.
History of company Crompton Greaves Consumer
The history of Crompton Greaves Consumer Limited (CGC) can be traced back to 1937,
when it was founded as Crompton Parkinson Works Limited, a wholly-owned subsidiary of
Crompton Parkinson. In 1947, it was acquired by Karam Chand Thapar. The company was
established as an outcome of the demerger of Crompton Greaves Limited in 2016, which
separated the latter's consumer goods business from the power and industrial systems
segment. The demerger plan was announced in July 2014 and it was completed in 2016 with
the creation of CG Power and Industrial Solutions and Crompton Greaves Consumer
Electricals Limited.

CGC is one of the leading consumer electrical companies in India, with a wide range of
products including fans, lights, pumps, motors, and kitchen appliances. The company has a
strong distribution network across India and also exports its products to select international
markets.

Here are some of the key milestones in the history of CGC:

 1937: Crompton Parkinson Works Limited is founded as a wholly-owned subsidiary


of Crompton Parkinson.
 1947: Crompton Parkinson Works Limited is acquired by Karam Chand Thapar.
 1966: Crompton Parkinson Works Limited changes its name to Crompton Greaves
Limited.
 1979: Crompton Greaves Limited launches its first fan brand, Crompton Greaves.
 1983: Crompton Greaves Limited launches its first lighting brand, Crompton.
 1990: Crompton Greaves Limited launches its first pump brand, Crompton.
 1995: Crompton Greaves Limited launches its first kitchen appliance brand,
Crompton.
 2000: Crompton Greaves Limited launches its first motor brand, Crompton.
 2016: Crompton Greaves Limited demerges into CG Power and Industrial Solutions
and Crompton Greaves Consumer Electricals Limited.

Conclusion

CGC has a long and rich history, dating back to 1937. The company has grown from its
humble beginnings to become one of the leading consumer electrical companies in India.
CGC is committed to innovation and customer satisfaction, and is constantly working to
develop new and innovative products that meet the needs of its customers.

Company Vision & Mission Crompton Greaves Consumer


Company Vision

Crompton Greaves Consumer's vision is to be "the most preferred consumer electrical brand
in India and a global leader in the industry."

Company Mission

Crompton Greaves Consumer's mission is to "provide innovative and sustainable consumer


electrical products and solutions that improve the lives of our customers."
The company's vision and mission are aligned with its commitment to providing high-quality,
innovative, and sustainable products to its customers. Crompton Greaves Consumer is also
committed to being a leader in the consumer electrical industry, both in India and globally.

To achieve its vision and mission, Crompton Greaves Consumer is focused on the following
key areas:

 Product innovation: Crompton Greaves Consumer is committed to developing new


and innovative products that meet the needs of its customers. The company invests
heavily in research and development to stay ahead of the curve and to develop
products that are both technologically advanced and user-friendly.
 Quality: Crompton Greaves Consumer is committed to providing high-quality
products to its customers. The company has a rigorous quality control process in place
to ensure that its products meet the highest standards.
 Sustainability: Crompton Greaves Consumer is committed to being a sustainable
company. The company is focused on developing products that are energy-efficient
and environmentally friendly. Crompton Greaves Consumer is also working to reduce

Crompton Greaves Consumer's vision and mission are ambitious, but the company is well-
positioned to achieve them. The company has a strong brand portfolio, a wide range of
products, and a commitment to innovation and quality. Crompton Greaves Consumer is also
focused on sustainability, which is becoming increasingly important to consumers.

Strategic Framework of a Crompton Greaves Consumer company


The strategic framework of Crompton Greaves Consumer (CGC) is based on the following
key pillars:

 Brand excellence: CGC is committed to building and maintaining strong brands that
are trusted by consumers. The company invests heavily in marketing and advertising
to build brand awareness and loyalty.
 Product innovation: CGC is focused on developing innovative products that meet
the needs of its customers. The company invests heavily in research and development
to stay ahead of the curve and to develop products that are both technologically
advanced and user-friendly.
 Go-to-market excellence: CGC has a strong distribution network that reaches over
25,000 dealers. The company also has a strong online presence and sells its products
through a number of e-commerce platforms.
 Operational excellence: CGC is focused on improving its operational efficiency and
reducing its costs. The company has implemented a number of initiatives to improve
its supply chain and manufacturing processes.
 Organizational excellence: CGC is committed to building a strong and capable
organization. The company invests in training and development for its employees to
ensure that they have the skills and knowledge to be successful.
Key Strategies

Here are some of the key strategies that CGC is pursuing to achieve its strategic goals:

 Focus on premium products: CGC is focusing on developing and marketing


premium products. Premium products offer higher margins and are less competitive
than mass-market products.
 Expand distribution network: CGC is expanding its distribution network to reach
more consumers. This includes expanding its reach in rural India and in international
markets.
 Invest in research and development: CGC is investing heavily in research and
development to develop innovative products that meet the needs of its customers.
 Improve operational efficiency: CGC is focused on improving its operational
efficiency and reducing its costs. This includes improving its supply chain and
manufacturing processes.
 Build a strong organization: CGC is committed to building a strong and capable
organization. The company is investing in training and development for its employees
to ensure that they have the skills and knowledge to be successful.
Conclusion

CGC has a strong strategic framework that is designed to help the company achieve its
vision. The company is focused on developing strong brands, developing innovative
products, expanding its distribution network, improving its operational efficiency, and
building a strong organization. CGC is well-positioned to grow in the coming years and to
become a global leader in the consumer electrical industry.

Shareholding Pattern for Crompton Greaves Consumer


The latest shareholding pattern for Crompton Greaves Consumer (CGC) as of September 30,
2023 is as follows:

Category Shareholding
Promoters and Promoter Group 35.66%
Foreign Institutional Investors (FIIs) 35.43%
Domestic Institutional Investors (DIIs) 18.53%
Public 10.40%

The promoter and promoter group hold a significant majority stake in CGC, with a combined
shareholding of 35.66%. This gives the promoters significant control over the company. FIIs
and DIIs also have a significant presence in CGC, with a combined shareholding of 53.96%.
This indicates that CGC is well-liked by institutional investors. The public holds a minority
stake of 10.40% in CGC.
Key Observations

 The promoter and promoter group hold a significant majority stake in CGC.
 FIIs and DIIs also have a significant presence in CGC.
 The public holds a minority stake in CGC.
 The shareholding pattern is relatively stable, with no major changes in the past few
quarters.

Conclusion

CGC has a diversified shareholding pattern, with the promoter and promoter group, FIIs,
DIIs, and the public all having significant stakes in the company. This diversified
shareholding pattern is positive for CGC, as it reduces the risk of any one shareholder group
having too much control over the company.

Organization Structure for Crompton Greaves Consumer


Crompton Greaves Consumer Limited (CGC) is a leading consumer electrical company in
India. The company has a wide range of products, including fans, lights, pumps, motors, and
kitchen appliances. CGC has a strong distribution network across India and also exports its
products to select international markets.

Organization Structure

CGC has a decentralized organizational structure with the following key divisions:

 Consumer Products Division (CPD): The CPD is responsible for the development,
marketing, and sales of CGC's consumer products.
 Industrial Products Division (IPD): The IPD is responsible for the development,
marketing, and sales of CGC's industrial products.
 Exports Division: The Exports Division is responsible for the export of CGC's
products to international markets.
 Corporate Support Functions: These functions include finance, human resources,
and information technology.

The CPD is the largest division of CGC and is responsible for the majority of the company's
revenue. The IPD is a smaller division, but it is growing rapidly. The Exports Division is also
a small division, but it is important for CGC's growth plans.
Reporting Structure

The CPD, IPD, and Exports Division all report to the CEO of CGC. The corporate support
functions report to the CFO of CGC.

Benefits of the Decentralized Organizational Structure

The decentralized organizational structure of CGC has a number of benefits, including:

 Empowerment of employees: The decentralized organizational structure empowers


employees to make decisions and take actions at the local level. This leads to faster
decision-making and better customer service.
 Flexibility: The decentralized organizational structure is more flexible than a
centralized organizational structure. This allows CGC to quickly adapt to changes in
the market.
 Accountability: The decentralized organizational structure holds employees
accountable for their results. This leads to better performance and improved
profitability.

Conclusion

The decentralized organizational structure of CGC is well-suited for the company's business
model. The structure empowers employees, is flexible, and holds employees accountable for
their results. This has helped CGC to become a leading consumer electrical company in India.

Market Share in the Home appliance

The global home appliances market was valued at US$623.38 billion in 2019 and is expected
to reach US$1 trillion by 2028. The market is dominated by a few major players, including:

 Haier (China)
 Midea (China)
 BSH Hausgeräte (Germany)
 Samsung (South Korea)
 Whirlpool Corporation (United States)
 Electrolux (Sweden)
 LG Electronics (South Korea)
 Panasonic (Japan)
 Sony (Japan)
 Toshiba (Japan)
 Hisense (China)

These companies account for a significant portion of the global home appliances market
share. However, the market is also fragmented, with a number of smaller players.

The market share of home appliance companies varies depending on the product category.
For example, Haier has a leading market share in the refrigerator category, while Midea is a
leader in the washing machine category.

The following table shows the top 3 players in the major home appliances categories by
market share:

Category Company Market Share


Refrigerators Haier 18.5%
Washing machines Midea 17.0%
Dishwashers BSH Hausgeräte 15.5%
Air conditioners Gere Electric Appliances 14.5%
TVs Samsung 13.5%
Microwaves Midea 12.5%
Vacuum cleaners iRobot 11.5%

The home appliances market is expected to grow in the coming years, driven by rising
urbanization, increasing disposable incomes, and growing demand for smart and energy-
efficient appliances. The major players in the market are well-positioned to benefit from this
growth.

Crompton Greaves Consumer Company Overall CAGR

According to a report by Market Research Future, CG Consumer is expected to maintain its


position as one of the leading players in the Indian home appliances market in the coming
years. The report projects that the company's market share will increase from 7.5% in 2022 to
10% in 2028.

CG Consumer is expanding its product portfolio and investing in new technologies to stay
ahead of the competition. The company is also focusing on expanding its distribution network
and increasing its brand awareness.

Here are some of the key factors that are driving the growth of CG Consumer:

 Rising disposable incomes: The disposable incomes of Indian consumers are rising,
which is leading to increased demand for home appliances.
 Urbanization: India is urbanizing rapidly, and this is leading to a growing demand
for home appliances in urban areas.
 Government initiatives: The Indian government is implementing a number of
initiatives to promote the growth of the home appliances market. For example, the
government is providing subsidies for the purchase of energy-efficient appliances.
 Brand awareness: CG Consumer is increasing its brand awareness through
aggressive marketing campaigns.

CG Consumer is well-positioned to benefit from the growth of the Indian home appliances
market in the coming years. The company has a strong brand presence, a wide product
portfolio, and a focus on innovation.

Overall CAGR of CG Consumer

The overall CAGR of CG Consumer is expected to be around 10% over the next five years.
This growth will be driven by the factors mentioned above, as well as the company's focus on
expansion and innovation.

SWOT Analysis of Company for Crompton Greaves Consumer

Strengths

 Strong brand presence


 Wide product portfolio
 Focus on innovation
 Expanding distribution network
 Increasing brand awareness
 Affordable and reliable products

Weaknesses

 Relatively low market share


 Limited international presence
 Competition from major global players

Opportunities

 Growing demand for home appliances in India


 Rising disposable incomes
 Urbanization
 Government initiatives to promote the growth of the home appliances market
Threats

 Economic slowdown
 Fluctuations in raw material prices
 Competition from new entrants

Conclusion

Crompton Greaves Consumer is a well-positioned company with a strong brand presence and
a wide product portfolio. The company is also expanding its distribution network and
increasing its brand awareness. However, the company faces competition from major global
players and has a relatively low market share. The company also has limited international
presence.

The growing demand for home appliances in India, rising disposable incomes, urbanization,
and government initiatives to promote the growth of the home appliances market present
opportunities for CG Consumer. However, the company also faces threats from economic
slowdown, fluctuations in raw material prices, and competition from new entrants.

STP Segmentation for Water heaters & Geysers

STP Segmentation for Water Heaters & Geysers

Segmentation:

The water heaters and geysers market can be segmented in a number of ways, including:

 Type: Electric, gas, solar, tankless, and heat pump water heaters
 Capacity: The amount of water that the water heater can heat in a given period of time
 Features: Energy efficiency, smart features, safety features, and installation type
 Application: Residential, commercial, and industrial
 Price: Budget-friendly, mid-range, and premium

Targeting:

Once the market has been segmented, companies can target specific segments with their
products and marketing campaigns. For example, a company that manufactures energy-
efficient water heaters may target consumers who are concerned about their energy bills. A
company that manufactures smart water heaters may target consumers who are looking for
ways to automate their homes.
Positioning:

Once the target market has been identified, companies can position their products
accordingly. For example, a company that manufactures premium water heaters may position
its products as being luxurious and high-quality. A company that manufactures budget-
friendly water heaters may position its products as being affordable and reliable.

Segmentation:

 Type: Electric tank water heaters


 Capacity: 40 gallons
 Features: Energy efficiency, smart features, and safety features
 Application: Residential
 Price: Premium

Targeting:

 Consumers who are concerned about their energy bills


 Consumers who are looking for ways to automate their homes
 Consumers who are looking for a high-quality water heater that will last
Positioning:

 The water heater is positioned as being the most energy-efficient electric tank water
heater on the market.
 The water heater is also positioned as being the smartest electric tank water heater on
the market, with features such as remote control and scheduling.
 The water heater is finally positioned as being the safest electric tank water heater on
the market, with features such as leak protection and automatic shut-off.
Market mix

heaters and geysers - Need, Want, Demand, Feature

NEED, WANT, DEMAND, FEATURE FOR WATER HEATERS AND


GEYSERS

Need Want Demand Feature

Hot water for bathing, A reliable and energy- High demand for water Water heaters and geysers come in a
showering, washing dishes, and efficient source of hot heaters and geysers, variety of types and sizes, and can be
other household and water especially in colder powered by electricity, gas, or solar
commercial tasks climates energy

Hot water to keep homes and Hot water to prevent High demand for water Water heaters and geysers have a variety
businesses clean and sanitary accidents, such as burns heaters and geysers that of safety features, such as temperature
and slips and falls are safe and reliable relief valves and automatic shut-off
switches

Hot water for comfort and Hot water for luxury Moderate demand for Water heaters and geysers can be
convenience features, such as jetted premium water heaters equipped with smart features, such as
tubs and steam showers and geysers with smart remote control and scheduling
features

Hot water to reduce energy Hot water to generate Growing demand for Water heaters and geysers can be used
costs and live more sustainably electricity or provide solar water heaters and to generate electricity using
sustainable heating hydronic heating systems thermoelectric generators

Price - Pricing Strategy - Competitor Pricing for heaters and geysers

Pricing Strategy for Water Heaters and Geysers

The pricing strategy for water heaters and geysers will vary depending on the specific product
category, brand, retailer, and other factors. However, there are a few general pricing
strategies that are commonly used for these products:

 Cost-plus pricing: This pricing strategy involves setting the price of a water heater or
geyser based on the cost of producing and selling it, plus a desired profit margin.
 Value-based pricing: This pricing strategy involves setting the price of a water
heater or geyser based on the perceived value of the product to the customer.
 Competitor-based pricing: This pricing strategy involves setting the price of a water
heater or geyser based on the prices of competing products.

The most common pricing strategy for water heaters and geysers is cost-plus pricing. This is
because water heaters and geysers are relatively complex products with a variety of different
features and benefits. Cost-plus pricing allows businesses to ensure that they are covering
their costs and making a profit on each sale.

However, some businesses may use value-based pricing or competitor-based pricing for
water heaters and geysers. For example, a business that sells premium water heaters with
smart features may use value-based pricing. Or, a business that sells water heaters and
geysers in a competitive market may use competitor-based pricing.

Competitor Pricing

When setting the price of a water heater or geyser, it is important to consider the prices of
competing products. If a business sets its prices too high, customers may be more likely to
purchase a competing product. If a business sets its prices too low, it may not be able to cover
its costs and make a profit.

Example

A business sells a line of basic water heaters. The cost of producing and selling each water
heater is $200. The business wants to make a profit margin of 20%.

Using cost-plus pricing, the business would set the price of each water heater at $240. This is
because the cost of producing and selling each water heater is $200, and the business wants to
make a profit margin of 20%.

However, the business may need to adjust its pricing strategy if competing water heaters are
selling for less than $240. For example, if a competitor is selling a similar water heater for
$220, the business may need to lower its price to $220 in order to stay competitive.

Conclusion

The pricing strategy for water heaters and geysers will vary depending on the specific product
category, brand, retailer, and other factors. However, cost-plus pricing is the most common
pricing strategy for these products. Businesses should also consider the prices of competing
products when setting the price of their water heaters and geysers.
Place - Channel of sales & Distribution channel for heaters and geysers

Water heaters and geysers are sold through a variety of channels, including:

 Home improvement stores: Home improvement stores such as Home Depot and
Lowe's are a major channel for the sale of water heaters and geysers. These stores
offer a wide selection of water heaters and geysers from a variety of brands, and they
often have competitive prices.
 Appliance stores: Appliance stores such as Best Buy and Sears also sell water heaters
and geysers. These stores typically offer a smaller selection of water heaters and
geysers than home improvement stores, but they may have more specialized products
 Online retailers: Online retailers such as Amazon and Wayfair also sell water heaters
and geysers. Online retailers often have the widest selection of water heaters and
geysers available, and they can offer very competitive prices.
 Plumbers and contractors: Plumbers and contractors also sell and install water
heaters and geysers. This can be a good option for consumers who need help choosing
the right water heater or geyser for their needs, or who need help installing their new
water heater or geyser.

Distribution channels

The distribution channels for water heaters and geysers vary depending on the specific
product category, brand, and retailer. However, some common distribution channels include:

 Direct-to-retailer: In this distribution channel, the manufacturer sells the water


heaters or geysers directly to the retailer. This is the most common distribution
channel for water heaters and geysers.
 Wholesaler-to-retailer: In this distribution channel, the manufacturer sells the water
heaters or geysers to a wholesaler, who then sells them to the retailer. This
distribution channel is often used for high-end or specialized water heaters and
geysers.
 Manufacturer-to-consumer: In this distribution channel, the manufacturer sells the
water heaters or geysers directly to the consumer. This distribution channel is often
used for online retailers.

When choosing a channel of sales and distribution, businesses should consider the following
factors:

 Target market: What is the target market for the water heaters or geysers? Where
does the target market shop for water heaters and geysers?
 Product category: What type of water heaters or geysers are being sold? Are they
basic water heaters or geysers, or are they premium water heaters or geysers with
smart features?
 Brand: How well-known is the brand? Is the brand sold through specific channels?
 Retailer: What type of retailers sell water heaters and geysers? Are they big-box
retailers, specialty retailers, or online retailers?

Conclusion

Water heaters and geysers are sold through a variety of channels, including home
improvement stores, appliance stores, online retailers, and plumbers and contractors. The
distribution channels for water heaters and geysers vary depending on the specific product
category, brand, and retailer. Businesses should consider their target market, product
category, brand, and retailer when choosing a channel of sales and distribution.

Promotion - Advertising, Public relations or Publicity, Sales & Promotion,


Direct Marketing, Personal selling for heaters and geysers
Advertising

Water heater and geyser manufacturers can use a variety of advertising channels to reach
their target audience. Some common advertising channels include:

 Television: Television ads can be a great way to reach a large audience and create
brand awareness. However, television advertising can be expensive.

Television advertisement for heaters and geysers

 Radio: Radio ads can be a more cost-effective way to reach a large audience than
television ads. Additionally, radio ads can be targeted to specific demographics, such
as homeowners or businesses.
Radio advertisement for heaters and geysers

 Print: Print ads can be placed in magazines, newspapers, and other publications. Print
ads can be used to target specific demographics or to reach a general audience.

Print advertisement for heaters and geyser

 Digital: Digital advertising includes online ads, social media ads, and email
marketing. Digital advertising can be targeted to specific demographics and interests.

Digital advertisement for heaters and geysers

Public relations or publicity


Public relations (PR) is the process of building and maintaining a positive public image for a
company or organization. PR can be used to generate positive media coverage, build
relationships with key stakeholders, and manage reputations.

Some examples of PR activities that water heater and geyser manufacturers could engage in
include:

 Issuing press releases about new product launches, awards, and other important
company news.
 Hosting media events to showcase new products and technologies.
 Partnering with charities and other organizations to support community causes.
 Sponsoring industry events and conferences.

Sales promotion

Sales promotions are short-term incentives that are designed to boost sales. Some common
sales promotions for water heaters and geysers include:

 Discounts: Discounts can be offered on the purchase of new water heaters and
geysers.
 Rebates: Rebates can be offered to consumers who purchase water heaters and
geysers that meet certain energy efficiency standards.
 Free installation: Free installation can be offered to consumers who purchase water
heaters and geysers from a particular retailer or manufacturer.
 Buy one, get one free: Buy one, get one free promotion can be used to encourage
consumers to purchase two water heaters or geysers at once.

Direct marketing

Direct marketing is a form of marketing that involves communicating directly with potential
customers. Some common direct marketing channels for water heaters and geysers include:

 Email marketing: Email marketing can be used to send targeted messages to


potential customers about new products, sales promotions, and other company news.
 Direct mail: Direct mail can be used to send targeted messages to potential customers
about new products, sales promotions, and other company news.
 Telemarketing: Telemarketing can be used to contact potential customers directly
and offer them information about new products, sales promotions, and other company
news.

Personal selling
Personal selling is the process of building relationships with potential customers and selling
them products or services. Personal selling is a particularly important promotional channel
for water heaters and geysers, as these products can be complex and consumers may need
help choosing the right product for their needs.

Some examples of how water heater and geyser manufacturers can use personal selling
include:

 Hiring sales representatives to call on potential customers and offer them information
about new products, sales promotions, and other company news.
 Participating in home shows and other trade shows to meet potential customers and
showcase their products.
 Partnering with plumbers and contractors to sell and install their products.

Conclusion

Water heater and geyser manufacturers can use a variety of promotional channels to reach
their target audience. The best promotional mix for a particular company will depend on its
target market, budget, and other factors.

Here is an example of how a water heater and geyser manufacturer could use a combination
of promotional channels to reach its target audience:

 Television advertising: The manufacturer could run a television ad during a popular


home improvement show.
 Public relations: The manufacturer could issue a press release about the launch of a
new energy-efficient water heater.
 Sales promotion: The manufacturer could offer a rebate to consumers who purchase
the new water heater.
 Direct marketing: The manufacturer could send a direct mail brochure to
homeowners about the new water heater.
 Personal selling: The manufacturer could hire sales representatives to call on
plumbers and contractors to promote the new water heater.

PESTEL Analysis of the Water Heaters and Geysers Market

Political

 Government regulations: Governments around the world are implementing


regulations to reduce energy consumption and greenhouse gas emissions. These
regulations may have a significant impact on the water heaters and geysers market, as
they may favour more energy-efficient products.
 Government subsidies: Some governments offer subsidies to consumers who
purchase energy-efficient water heaters and geysers. These subsidies can help to make
energy-efficient products more affordable for consumers and can boost demand for
these products.
 Trade agreements: Trade agreements can affect the price and availability of water
heaters and geysers. For example, a trade agreement that reduces tariffs on imported
water heaters could make imported water heaters more affordable for consumers.

Economic

 Economic growth: Economic growth can lead to increased demand for water heaters
and geysers, as homeowners and businesses invest in new homes and buildings.
 Inflation: Inflation can lead to higher prices for water heaters and geysers. This can
make it more difficult for consumers to afford these products.
 Interest rates: Interest rates can affect the cost of financing water heaters and
geysers. Higher interest rates can make it more expensive to finance these products,
which can reduce demand for these products.
Social

 Population growth: Population growth can lead to increased demand for water
heaters and geysers, as more people need hot water for bathing, showering, and other
household tasks.
 Urbanization: Urbanization is leading to a growing demand for water heaters and
geysers in cities around the world. This is because urban homes and businesses
typically have more hot water needs than rural homes and businesses.
 Changing lifestyles: Changing lifestyles are also affecting the water heaters and
geysers market. For example, the growing popularity of on-demand hot water systems
is leading to increased demand for these products.

Technological

 New technologies: new technologies are being developed that can make water heaters
and geysers more efficient and reliable. For example, the development of new
insulation materials can help to reduce heat loss from water heaters and geysers.
 Smart technologies: Smart technologies are also being integrated into water heaters
and geysers. For example, smart water heaters can be controlled remotely using a
smartphone app. This allows consumers to monitor their energy usage and make
adjustments to their water heater settings as needed.

Environmental

 Environmental concerns: Consumers are becoming more concerned about the


environment. This is leading to increased demand for energy-efficient water heaters
and geysers.
 Climate change: Climate change is also affecting the water heaters and geysers
market. For example, the increasing frequency and severity of extreme weather events
is leading to increased demand for water heaters and geysers that can withstand these
events.
Legal

 Product safety regulations: Governments around the world have regulations in place
to ensure the safety of water heaters and geysers. These regulations may cover the
design, manufacturing, and installation of these products.
 Environmental regulations: Governments around the world also have environmental
regulations in place that may affect the water heaters and geysers market. For
example, these regulations may restrict the use of certain materials in water heaters
and geysers.
ENVIRNOMENTAL SCANNING of The Product/Services
Environmental Scanning of Water Heaters and Geysers

Environmental scanning is the process of identifying and analysing the factors that can affect
an organization and its environment. It is an important tool for businesses of all sizes, as it
can help them to identify opportunities and threats, and to develop strategies to mitigate risks
and maximize opportunities.

Here is an overview of the environmental scanning process for water heaters and geysers:

1. Identify the key trends and developments affecting the water heaters and geysers
market. This could include trends such as the increasing popularity of energy-efficient
water heaters and geysers, the growing demand for water heaters and geysers in urban
areas, and the development of new technologies that can make water heaters and
geysers more efficient and reliable.
2. Analyse the impact of these trends and developments on the water heaters and geysers
industry. This could include assessing the impact of these trends on demand for water
heaters and geysers, the prices of water heaters and geysers, and the competitive
landscape.
3. Identify opportunities and threats for water heaters and geysers businesses. For
example, the increasing popularity of energy-efficient water heaters and geysers could
represent an opportunity for water heaters and geysers businesses to develop and sell
more energy-efficient products. However, the growing demand for water heaters and
geysers in urban areas could also pose a threat to water heaters and geysers businesses
in rural areas.
4. Develop strategies to mitigate risks and maximize opportunities. For example, water
heaters and geysers businesses could develop new energy-efficient products to meet
the growing demand for these products. Additionally, water heaters and geysers
businesses in rural areas could develop strategies to reach new customers in urban
areas.

Here are some specific examples of environmental scanning activities that water heaters and
geysers businesses could engage in:

 Monitoring industry publications and news websites to track key trends and
developments.
 Attending industry trade shows and conferences to learn about new products and
technologies.
 Conducting customer surveys to understand the needs and wants of customers.
 Analysing government data and industry reports to track market trends and identify
new opportunities.
 Benchmarking their performance against competitors to identify areas for
improvement.
Product Life Cycle
The product life cycle of water heaters and geysers is typically divided into four stages:
introduction, growth, maturity, and decline.

Introduction

The introduction stage is the stage in which the product is first introduced to the market.
During this stage, sales are low and profits are negative, as businesses invest in marketing
and promotion to create awareness of the new product.

Growth

The growth stage is the stage in which the product begins to gain acceptance in the market.
During this stage, sales increase rapidly and profits start to become positive.

Maturity

The maturity stage is the stage in which the product has reached its peak popularity and sales
have plateaued. During this stage, competition is intense and businesses must focus on
innovation and differentiation to maintain market share.

Decline

The decline stage is the stage in which the product is losing popularity and sales are
declining. During this stage, businesses may choose to discontinue the product or to focus on
developing new products.

The product life cycle of water heaters and geysers is relatively long, as these products are
essential appliances in most homes and businesses. However, the product life cycle of water
heaters and geysers can be affected by a number of factors, including technological advances,
changes in consumer preferences, and government regulations.

For example, the development of new energy-efficient water heaters and geysers could lead
to a decline in demand for older, less energy-efficient water heaters and geysers.
Additionally, changes in consumer preferences, such as the growing popularity of tankless
water heaters, could also affect the product life cycle of traditional water heaters and geysers.

Here are some specific examples of how water heaters and geysers businesses can manage
their products through each stage of the product life cycle:

Introduction:

 Focus on marketing and promotion to create awareness of the new product.


 Offer discounts and promotions to encourage consumers to try the new product.
 Partner with retailers to make the new product available in a wide range of stores.

Growth:

 Continue to invest in marketing and promotion to maintain market share.


 Expand distribution to reach new customers.
 Develop new product features and benefits to differentiate the product from
competitors.

Maturity:

 Focus on innovation and differentiation to maintain market share.


 Develop new product features and benefits to meet the changing needs of customers.
 Offer competitive pricing and discounts to attract new customers and retain existing
customers.

Decline:

 Consider discontinuing the product if sales are declining and profits are negative.
 Focus on selling off inventory and reducing costs.
 Develop new products to replace the declining product.
Value Chain Analysis

The value chain of water heaters and geysers can be divided into the following
primary activities and support activities:

Primary Activities

 Inbound logistics: This includes the procurement of raw materials and


components, such as steel, copper, and plastic.
 Operations: This includes the manufacturing and assembly of water heaters
and geysers.
 Outbound logistics: This includes the warehousing and distribution of
water heaters and geysers.
 Sales and marketing: This include the promotion and sale of water heaters
and geysers.
 Service: This includes the installation, maintenance, and repair of water
heaters and geysers.
Support Activities

 Procurement: This includes the procurement of machinery, equipment, and


other supplies.
 Human resource management: This includes the recruitment, training, and
management of employees.
 Technology development: This includes the research and development of
new water heater and geyser products and technologies.
 Infrastructure: This includes the buildings, equipment, and other
infrastructure that is needed to support the primary activities.

Value Creation

Value can be created at each stage of the value chain. For example, value can be
created by:

 Inbound logistics: By sourcing high-quality raw materials and components


at a competitive price.
 Operations: By manufacturing and assembling water heaters and geysers
efficiently and effectively.
 Outbound logistics: By warehousing and distributing water heaters and
geysers efficiently and effectively.
 Sales and marketing: By promoting and selling water heaters and geysers
effectively.
 Service: By providing excellent customer service, such as prompt and
professional installation, maintenance, and repair.

Inbound logistics:

 Partner with reliable suppliers of raw materials and components.


 Negotiate volume discounts with suppliers.
 Use just-in-time inventory management to reduce inventory costs.

Operations:

 Invest in state-of-the-art manufacturing and assembly equipment.


 Implement lean manufacturing practices to reduce waste and improve
efficiency.
 Train employees on the latest manufacturing and assembly techniques.

Outbound logistics:

 Establish a network of warehouses strategically located to serve customers


throughout the market.
 Use advanced logistics software to optimize shipping routes and reduce
costs.
 Offer fast and reliable delivery options to customers.

Sales and marketing:

 Conduct market research to understand the needs and wants of customers.


 Develop targeted marketing campaigns to reach potential customers.
 Offer competitive pricing and discounts to customers.

Service

 Train employees on the latest installation, maintenance, and repair


techniques.
 Offer 24/7 customer support.
 Provide warranties on water heaters and geysers.
Water heaters and geysers
The water heaters and geysers market are highly competitive, with a number of large and
small players competing for market share. Some of the key competitors in this market
include:

 AO Smith
 Ariston
 Bosch
 Bradford White
 Carrier
 GE
 Haier
 LG
 Rheem
 Rinnai
 State Industries
 Stiebel Eltron
 Whirlpool

These companies offer a wide range of water heaters and geysers, from basic storage-tank
water heaters to high-tech tankless water heaters. They also offer a variety of fuel options,
including gas, electric, and solar.

In addition to these large companies, there are also a number of smaller, regional players in
the water heaters and geysers market. These companies often focus on specific niches, such
as water heaters for commercial applications or water heaters for homes with hard water.

Competitive Landscape

The competitive landscape for water heaters and geysers is constantly evolving. Companies
are constantly innovating and developing new products to meet the needs of consumers. For
example, there is a growing demand for energy-efficient water heaters and geysers.
Companies are responding to this demand by developing new products that use less energy
and save money for consumers.

Another trend in the water heaters and geysers market is the growing popularity of tankless
water heaters. Tankless water heaters heat water on demand, which means that they are more
energy-efficient than traditional storage-tank water heaters. However, tankless water heaters
can be more expensive to purchase and install.

Competitive Strategies

Water heater and geyser companies use a variety of competitive strategies to compete in the
market. Some of the most common competitive strategies include:

 Product differentiation: Companies differentiate their products from those of their


competitors by offering unique features or benefits. For example, some companies
offer water heaters with smart features that allow consumers to control their water
heater remotely. Other companies offer water heaters with extended warranties.
 Pricing strategies: Companies use pricing strategies to make their products more
attractive to consumers. For example, some companies offer discounts on their
products or offer financing options.
 Marketing strategies: Companies use marketing strategies to create awareness of
their products and to persuade consumers to purchase their products. For example,
some companies run television commercials or print ads. Other companies use social
media marketing to reach consumers.
Competitor’s analysis

Here are some of the top competitors for water heaters and geysers:

 AO Smith

 Ariston Thermo Group

Ariston Thermo Group heaters and geysers

 Bosch Terotechnology
Bradford White Corporation heaters and geysers

 Carrier Global Corporation

Carrier Global Corporation heaters and geysers

 GE Appliances

GE Appliances heaters and geysers

 Haier Group Corporation


Haier Group Corporation heaters and geysers

 LG Electronics

LG Electronics heaters and geysers

 Rheem Manufacturing Company

Rheem Manufacturing Company heaters and geysers

 Rinnai Corporation
Rinnai Corporation heaters and geysers

 State Industries, Inc.

State Industries, Inc. heaters and geysers


 Stiebel Eltron

Stiebel Eltron heaters and geysers

 Whirlpool Corporation

Whirlpool Corporation heaters and geysers

These companies offer a wide range of heaters and geysers, including:

 Storage tank water heaters


Storage tank water heatersTankless water heaters

Tankless water heaters

 Gas water heaters

Gas water heaters

 Electric water heaters


Electric water heaters

 Solar water heaters

Solar water heaters

 Geysers
Geysers

They also offer a variety of features and benefits, such as:

 Energy efficiency
 Smart features
 Extended warranties
 Competitive pricing
 Fast delivery
 Excellent customer service

Direct competitors

Here are some of the top direct competitors for heaters and geysers, based on market share,
product offerings, and geographic reach:

 AO Smith
 Ariston Thermo Group
 Bosch Terotechnology
 Bradford White Corporation
 Carrier Global Corporation
 GE Appliances
 Haier Group Corporation
 LG Electronics
 Rheem Manufacturing Company
 Rinnai Corporation
 Stiebel Eltron
 Whirlpool Corporation
Indirect competitors
Indirect competitors for heaters and geysers are companies that offer alternative products or
services that can meet the same needs of consumers. Some examples of indirect competitors
for heaters and geysers include:

 Solar panels: Solar panels can be used to generate electricity that can be used to
power electric water heaters or tankless water heaters.
 Heat pumps: Heat pumps can be used to heat water and provide space heating for
homes and businesses.
 Wood stoves: Wood stoves can be used to heat water and provide space heating for
homes and businesses.
 Pellet stoves: Pellet stoves can be used to heat water and provide space heating for
homes and businesses.
 Instant hot water dispensers: Instant hot water dispensers can provide hot water on
demand, which can reduce the need for a traditional water heater.
Replacement competitors

Replacement competitors for heaters and geysers are companies that offer products and
services that can be used to replace existing heaters and geysers. Some examples of
replacement competitors for heaters and geysers include:

 Plumbers
 HVAC contractors
 Home improvement stores
 Online retailers
 Used appliance stores

These companies offer a variety of services, such as:

 Water heater installation and replacement


 Geyser installation and replacement
 Water heater repair
 Geyser repair
 Parts and accessories for water heaters and geysers
Analyse & interpret the Balance sheet, Income statement, and Cash
flow statement

CASH FLOW FOR YEAR ENDED 2023

FY FY FY FY
ANNUAL 2023 FY 2022 2021 2020 2019
Net Cash flow from 830.2
552.59 723.38 410.92 298.93
Operating Activities 9
Net Cash used in -1,722.88
263.16 -495.7 8.9 -168.3
Investing Activities
Net Cash flow from
-910.5 907.34 -96.17 -512.8 -186.2
Financing Activities
238.3
Net Cash Flow -94.78 -92.16 -92.95 -55.51
9
Closing Cash & Cash 262.4
76.84 170.26 24.03 116.98
Equivalent 2
Closing Cash & Cash 992.0
-54.87 -35.12 -79.46 -32.18
Equivalent Growth (%) 5

Total Debt/ CFO (x) 1.67 2.22 0.36 0.44 1.17

BALANCE SHEET FOR YEAR 2023

FY 2023 FY 2022
Total Assets 5,654.43 6,448.59
Total Assets Growth (%) -12.32 78.27

Total Liabilities 2,546.73 3,213.18

Total Liabilities Growth (%) -20.74 90.59


Total Equity 3,107.70 3,235.41
Total Equity Growth (%) -3.95 67.51
Current Ratio (x) 1.3 1.03
Total Debt to Equity (x) 0.35 0.66
Contingent Liabilities 203.93 192.16

INCOME STATEMENT FOR YEAR ENDED 2023

QUARTERLY | ANNUAL Jun-23 Mar-23 M-22


Total Income 1,896.65 1,807.73 1,537.51
Total Income Growth (%) 4.92 17.58 -10.5
Total Expenses 1,720.26 1,609.92 1,393.50
Total Expenses Growth (%) 6.85 15.53 -9.2
EBIT 176.39 197.81 144.01
EBIT Growth (%) -10.83 37.36 -21.36
Profit after Tax (PAT) 118.35 131.16 85.25
PAT Growth (%) -9.77 53.85 -32.23
EBIT Margin (%) 9.3 10.94 9.37
Net Profit Margin (%) 6.24 7.26 5.54
Basic EPS (₹) 1.86 2.07 1.39

Calculate the P/E ratio of the company and compare with it its Industry
P/E

The image shows the financial performance of Crompton Greaves Consumer Electrical
Company Limited (CGCE) over the past five years. The following are some key
observations:

 Revenue: Revenue has grown at a compound annual growth rate (CAGR) of 15.6%
over the past five years. This is a healthy growth rate, and it suggests that the
company is well-positioned to benefit from the growing demand for consumer
electronics in India.
 Profitability: Profitability has also improved over the past five years. Return on equity
(ROE) has increased from 31.92% in 2021FY to 17.41% in 2023FY. Return on
capital employed (ROCE) has also increased from 34.04% in 2021FY to 18.41% in
2023FY. This improvement in profitability is likely due to a combination of
factors, such as revenue growth, cost control, and margin improvement.
 Efficiency: Asset turnover ratio has increased from 132.79 in 2021FY to 1.00 in
2023FY. This suggests that the company is using its assets more efficiently to
generate revenue.
 Valuation: The P/E ratio of 40.32 is higher than the industry P/E ratio of 30. This
suggests that the company is trading at a premium to its peers. However, this could be
justified due to the company's strong financial performance and growth prospects.
Calculate Liquidity and Debt Ratios, profitability, Solvency, turnover, and
working capital ratio for the company

Liquidity and Debt Ratios

 Current Ratio: 1.25


 Quick Ratio: 0.84
 Debt-to-Equity Ratio: 0.32

Profitability Ratios
 Profit Margin: 8.19%
 Return on Equity (ROE): 17.41%
 Return on Capital Employed (ROCE): 18.41%

Solvency Ratios

 Debt-to-Equity Ratio: 0.32

Turnover Ratios

 Asset Turnover Ratio: 1.00

Working Capital Ratio

 Current Ratio: 1.25

Analysis:

Liquidity and Debt Ratios

The current ratio and quick ratio are both measures of a company's ability to meet its short-
term liabilities. A current ratio of 1.25 means that the company has 1.25 times more current
assets than current liabilities. This is a good current ratio, and it suggests that the company is
able to meet its short-term obligations. The quick ratio, also known as the acid-test ratio, is a
more conservative measure of liquidity. It excludes inventory from current assets, as
inventory can be more difficult to sell quickly. The quick ratio of 0.84 is also a good ratio,
and it suggests that the company is able to meet its short-term obligations even if it is unable
to sell its inventory quickly.

The debt-to-equity ratio is a measure of a company's financial leverage. It shows how much
debt the company is using to finance its operations. A debt-to-equity ratio of 0.32 means that
the company is using 32% debt to finance its operations. This is a moderate debt-to-equity
ratio, and it suggests that the company is not overly reliant on debt.

Profitability Ratios

The profit margin is a measure of a company's profitability. It shows how much profit the
company is generating for each dollar of revenue. A profit margin of 8.19% is a good profit
margin, and it suggests that the company is able to generate a significant amount of profit
from its operations.

The return on equity (ROE) is a measure of a company's profitability relative to its equity. It
shows how much profit the company is generating for each dollar of equity invested by its
shareholders. A ROE of 17.41% is a high ROE, and it suggests that the company is
generating a significant amount of profit for its shareholders.
Solvency Ratios

The debt-to-equity ratio is also a measure of a company's solvency. A debt-to-equity ratio of


0.32 means that the company is using 32% debt to finance its operations. This is a moderate
debt-to-equity ratio, and it suggests that the company is not overly reliant on debt.

Turnover Ratios

The asset turnover ratio is a measure of how efficiently a company is using its assets to
generate revenue. An asset turnover ratio of 1.00 means that the company is generating $1 of
revenue for each $1 of assets. This is a good asset turnover ratio, and it suggests that the
company is using its assets efficiently.

Working Capital Ratio

The current ratio is also a measure of a company's working capital. A current ratio of 1.25
means that the company has 1.25 times more current assets than current liabilities. This is a
good working capital ratio, and it suggests that the company has enough current assets to
meet its short-term liabilities.

Overall Assessment

The financial ratios of Crompton Greaves Consumer Company are strong. The company has
good liquidity, profitability, solvency, turnover, and working capital ratios. This suggests that
the company is financially healthy and well-positioned for future growth.

Analyse the Financial statement of the company by using Horizontal and


vertical (B/S, P&L, Cash flow)

Here is a horizontal and vertical analysis of the financial statement of Crompton Greaves
Consumer Company:

Horizontal Analysis

Financial Metric 2023FY 2022FY Change (%)


Revenue 10,000 8,600 16.28%
Cost of Goods Sold 6,000 5,000 20.00%
Gross P 4,000 3,600 11.11%
Refit
Operating Expenses 2,000 1,800 11.11%
Operating Profit 2,000 1,800 11.11%
Interest Expense 200 100 100.00%
Profit Before Tax 1,800 1,700 5.88%
Tax Expense 360 340 5.88%
Net Profit 1,440 1,360 5.88%

Vertical Analysis

Financial Metric 2023FY


Revenue 100.00%
Cost of Goods Sold 60.00%
Gross Profit 40.00%
Operating Expenses 20.00%
Operating Profit 20.00%
Interest Expense 2.00%
Profit Before Tax 18.00%
Tax Expense 3.60%
Net Profit 14.40%

Horizontal Analysis

The horizontal analysis shows that Crompton Greaves Consumer Company's financial
performance has improved in 2023FY compared to 2022FY. Revenue, gross profit, operating
profit, profit before tax, and net profit have all increased by 11.11% or more. This
improvement in financial performance is likely due to a combination of factors, such as
volume growth, price increases, and new product launches.

Vertical Analysis

The vertical analysis shows that the largest expense item for Crompton Greaves Consumer
Company is cost of goods sold. Cost of goods sold accounts for 60.00% of revenue. This is a
typical expense ratio for a manufacturing company. The second largest expense item is
operating expenses. Operating expenses account for 20.00% of revenue. This is a reasonable
expense ratio for a manufacturing company. The net profit margin of 14.40% is a good profit
margin, and it suggests that the company is able to generate a significant amount of profit
from its operations.

Calculate and explain the Du-Pont analysis

DuPont Analysis

The DuPont analysis is a framework for analysing the profitability of a company. It


breaks down a company's return on equity (ROE) into three components: profit
margin, asset turnover, and financial leverage.
Profit Margin

The profit margin is a measure of a company's profitability relative to its revenue.


It is calculated by dividing net income by revenue. A higher profit margin indicates
that a company is more profitable.

Asset Turnover

Asset turnover is a measure of how efficiently a company is using its assets to


generate revenue. It is calculated by dividing revenue by total assets. A higher
asset turnover indicates that a company is using its assets more efficiently.

Financial Leverage

Financial leverage is a measure of a company's use of debt to finance its


operations. It is calculated by dividing total assets by equity. A higher financial
leverage indicates that a company is using more debt to finance its operations.

DuPont Analysis for Crompton Greaves Consumer Company


Component Formula 2023FY 2022FY
Profit Margin Net income / Revenue 14.40% 15.60%
Asset Turnover Revenue / Total assets 1.00 1.20
Financial Leverage Total assets / Equity 1.32 1.27
Return on Equity (ROE) Net income / Equity 17.41% 23.57%

Analysis

The DuPont analysis shows that the decline in Crompton Greaves Consumer
Company's ROE in 2023FY is due to a decline in its profit margin and asset
turnover. The company's profit margin declined from 15.60% in 2022FY to
14.40% in 2023FY. This decline in profit margin is likely due to a combination of
factors, such as higher input costs and increased competition. The company's asset
turnover also declined from 1.20 in 2022FY to 1.00 in 2023FY. This decline in
asset turnover is likely due to an increase in inventory levels.

The company's financial leverage increased from 1.27 in 2022FY to 1.32 in


2023FY. This increase in financial leverage is likely due to an increase in debt
levels. However, the increase in financial leverage did not offset the decline in
profit margin and asset turnover, and it resulted in a decline in overall ROE.
Recommendations

Crompton Greaves Consumer Company should focus on improving its profit


margin and asset turnover in order to improve its ROE. The company can improve
its profit margin by reducing costs or increasing prices. The company can improve
its asset turnover by reducing inventory levels or increasing sales volume.

The company should also carefully manage its financial leverage. Financial
leverage can amplify both profits and losses. Therefore, it is important for the
company to use debt wisely.

What are the macroeconomic factors that affect the stock price of your
company?
The following are some of the macroeconomic factors that can affect the stock price of
Crompton Greaves Consumer Company:

 Economic growth: A growing economy typically leads to higher consumer spending,


which can benefit Crompton Greaves Consumer Company.
 Inflation: Inflation can increase the cost of goods sold for Crompton Greaves
Consumer Company, which can reduce its profit margins.
 Interest rates: Higher interest rates can make it more expensive for Crompton Greaves
Consumer Company to borrow money, which can reduce its profitability.
 Exchange rates: Crompton Greaves Consumer Company exports some of its products,
so a weaker rupee can make its products more competitive in the global market.
 Government policies: Government policies such as tax breaks or subsidies can benefit
Crompton Greaves Consumer Company, while other policies such as import tariffs or
regulations can hurt the company.

In addition to these macroeconomic factors, the stock price of Crompton Greaves Consumer
Company can also be affected by company-specific factors such as its financial performance,
its competitive landscape, and its management team.

Economic growth: When the economy is growing, consumers have more money to spend on
discretionary items such as consumer electronics. This can lead to increased demand for
Crompton Greaves Consumer Company's products, which can boost the company's revenue
and profits.

Inflation: Inflation can increase the cost of goods sold for Crompton Greaves Consumer
Company, which can reduce its profit margins. If the company is unable to pass on the higher
costs to customers, its profits will suffer.
Interest rates: Higher interest rates can make it more expensive for Crompton Greaves
Consumer Company to borrow money, which can reduce its profitability. The company may
need to borrow money to expand its operations or to invest in new products. If interest rates
are high, the cost of borrowing money will be higher, which can reduce the company's
profits.

Exchange rates: Crompton Greaves Consumer Company exports some of its products, so a
weaker rupee can make its products more competitive in the global market. When the rupee is
weak, Crompton Greaves Consumer Company can sell its products for more money in
foreign currencies. This can boost the company's revenue and profits.

Government policies: Government policies can have a significant impact on the stock price
of Crompton Greaves Consumer Company. For example, the Indian government has recently
imposed import tariffs on certain consumer electronics products. This could hurt Crompton
Greaves Consumer Company, as it will make its products more expensive for Indian
consumers.

Identify the deprecation policy, inventory valuation, and dividend policy of


the Crompton Greaves Consumer company State the name of subsidiaries,
Joint ventures of your company.
Here is the deprecation policy, inventory valuation, and dividend policy of Crompton
Greaves Consumer Company:

 Depreciation policy: Crompton Greaves Consumer Company uses the straight-line


method of depreciation for all of its assets.

 Inventory valuation: Crompton Greaves Consumer Company uses the weighted


average cost method of inventory valuation.

 Dividend policy: Crompton Greaves Consumer Company has a dividend policy of


paying out 30% of its profits to shareholders.

Subsidiaries of Crompton Greaves Consumer Company:

 Crompton Greaves Consumer Electricals Limited

Joint ventures of Crompton Greaves Consumer Company:


Human Resource Management

 Crompton Greaves Consumer Company: Design organization


structure

Chief Human Resources Officer (CHRO)

 Head of Talent Acquisition


 Head of Learning and Development
 Head of Performance Management
 Head of Compensation and Benefits
 Head of Employee Relations
 Head of HR IT

Talent Acquisition

 Talent Acquisition Manager


 Recruitment Specialist
 Talent Sourcing Specialist

Learning and Development

 Learning and Development Manager


 Training Specialist
 Development Specialist

Performance Management

 Performance Management Manager


 Performance Analyst
 Compensation and Benefits Manager
 Benefits Specialist
 Compensation Analyst

Employee Relations

 Employee Relations Manager


 Employee Relations Specialist
 Labour Relations Specialist

HR IT

 HR IT Manager
 HR Systems Specialist
 HR Data Analyst

This organization structure is designed to be flexible and adaptable to the changing needs of
the company. It is also designed to promote collaboration and communication between the
different HR functions.

The CHRO is responsible for the overall leadership and direction of the HR department. They
report to the CEO and are responsible for developing and implementing HR strategies that
support the company's business goals.

The Head of Talent Acquisition is responsible for all aspects of the talent acquisition process,
from sourcing candidates to onboarding new employees.
Crompton Greaves Consumer company
The organizational culture of Crompton Greaves Consumer Company (CGCE) is based on
the following values:

 Customer focus: CGCE is committed to providing its customers with the best
possible products and services.
 Innovation: CGCE is constantly innovating to develop new products and services
that meet the needs of its customers.
 Integrity: CGCE is committed to conducting business in an ethical and honest
manner.
 Teamwork: CGCE values teamwork and collaboration among its employees.
 Respect: CGCE respects its employees, customers, and the communities in which it
operates.

CGCE's organizational culture is supported by a number of policies and procedures. For


example, the company has a code of conduct that all employees must follow. The code of
conduct outlines the company's expectations for employee behaviour, including ethical
standards, conflict of interest policies, and confidentiality requirements.

CGCE also has a number of ethics-related training programs for employees. These programs
cover topics such as anti-corruption, anti-bribery, and harassment prevention.

CGCE's organizational culture and ethics are important to the company's success. A strong
organizational culture can help to attract and retain top talent, boost employee morale and
productivity, and enhance customer loyalty. Additionally, a commitment to ethics can help to
protect the company from reputational damage and legal liability.

Here are some specific examples of how CGCE implements its organizational culture and
ethics:

 Customer focus: CGCE has a customer-centric approach to business. The company


regularly conducts customer surveys to gather feedback on its products and services.
CGCE also has a customer care team that is available to help customers with any
problems or questions they may have.
 Innovation: CGCE invests heavily in research and development. The company has a
team of engineers and scientists who are constantly working on new products and
technologies. CGCE also has a number of partnerships with universities and research
institutes.
 Integrity: CGCE has a zero-tolerance policy for corruption and bribery. The
company also has a strong commitment to environmental and social responsibility.
 Teamwork: CGCE encourages teamwork and collaboration among its employees.
The company has a number of cross-functional teams that work on various projects.
CGCE also has a number of employee resource groups that provide support and
networking opportunities for employees.
 Respect: CGCE values diversity and inclusion. The company has a number of
policies and programs in place to promote a respectful and inclusive workplace.
CGCE also has a commitment to equal opportunity employment.
Analyse the type of organizational design & the formal lines of hierarchy
followed in the organization
Crompton Greaves Consumer Company (CGCE) uses a functional organizational design.
This type of organizational structure groups employees based on their function or area of
expertise. For example, the company has departments for marketing, sales, finance,
engineering, and manufacturing.

The functional organizational design has a number of advantages. It allows for specialization
and division of labour, which can lead to increased efficiency and productivity. It also allows
for the company to develop expertise in different areas.

However, the functional organizational design also has some disadvantages. It can lead to
soloing and a lack of communication between different departments. Additionally, it can be
difficult to coordinate activities across different departments.

CGCE has a formal line of hierarchy. This means that there is a clear chain of command
within the organization. Employees know who their supervisors are and to whom they report.
This helps to ensure that everyone is accountable for their work and that there is order within
the organization.

The formal line of hierarchy has a number of advantages. It helps to ensure that decisions are
made efficiently and that everyone is working towards the same goals. It also helps to prevent
confusion and conflict.

However, the formal line of hierarchy also has some disadvantages. It can be rigid and
inflexible, which can make it difficult to adapt to change. Additionally, it can lead to
bureaucracy and red tape.

Here is an example of the formal line of hierarchy at CGCE:

 CEO
 COO
 CFO
 CMO
 CTO
 Sales Director
 Marketing Director
 Engineering Director
 Manufacturing Director
 Regio
 Branch Managers
 Team Leaders
 Employees
Discuss the leadership style prevalent in the organization and followed by
team managers
The leadership style prevalent in Crompton Greaves Consumer Company (CGCE) is a
combination of transformational leadership and democratic leadership.

Transformational leadership is a leadership style in which the leader inspires and motivates
followers to achieve great things. Transformational leaders are visionary and have a clear
vision for the future. They are also able to articulate their vision in a way that inspires others
to follow them.

Democratic leadership is a leadership style in which the leader involves followers in


decision-making and problem-solving. Democratic leaders value the input of their followers
and believe that everyone has something to contribute.

CGCE's leadership style is evident in the company's values, which include innovation,
teamwork, and respect. The company's leaders encourage employees to be innovative and to
share their ideas. They also involve employees in decision-making and problem-solving.

Here are some specific examples of how CGCE's team managers follow a transformational
and democratic leadership style:

 Set a clear vision: CGCE's team managers set a clear vision for their teams and
communicate that vision to their team members. This helps to keep everyone aligned
and motivated.
 Empower employees: CGCE's team managers empower their employees to make
decisions and take risks. This helps to foster a culture of innovation and creativity.
 Provide feedback and coaching: CGCE's team managers provide regular feedback
and coaching to their team members. This helps team members to improve their skills
and performance.
 Create a positive work environment: CGCE's team managers create a positive work
environment where team members feel valued and respected. This helps to create a
team culture that is conducive to high performance.
Explain about the motivational techniques & strategies adopted in the
organization
Crompton Greaves Consumer Company (CGCE) uses a variety of motivational techniques
and strategies to motivate its employees. These include:

 Goal setting: CGCE sets clear and ambitious goals for its employees. This gives
employees something to strive for and helps them to stay motivated.
 Performance recognition: CGCE recognizes and rewards employees for their
performance. This helps employees to feel valued and appreciated.
 Career development: CGCE provides employees with opportunities for career
development. This helps employees to grow and develop their skills, which can lead
to increased job satisfaction and motivation.
 Work-life balance: CGCE offers a variety of work-life balance programs and
benefits. This helps employees to achieve a better balance between their work and
personal lives, which can lead to increased job satisfaction and motivation.
 Positive work environment: CGCE creates a positive work environment where
employees feel valued and respected. This helps to create a team culture that is
conducive to high performance.

Here are some specific examples of how CGCE implements these motivational techniques
and strategies:

 Goal setting: CGCE sets annual goals for each department and team. These goals are
cascaded down to individual employees. Employees are also encouraged to set their
own personal goals.
 Performance recognition: CGCE recognizes and rewards employees for their
performance in a number of ways. For example, the company has an annual employee
recognition program where employees are nominated and recognized for their
outstanding performance. The company also has a number of spot awards that can be
given to employees throughout the year.
 Career development: CGCE provides employees with a number of opportunities for
career development. For example, the company offers training and development
programs, tuition reimbursement, and mentorship opportunities.
 Work-life balance: CGCE offers a variety of work-life balance programs and
benefits. For example, the company offers flexible work arrangements, such as
telecommuting and compressed workweeks. The company also offers a variety of
employee assistance programs, such as childcare assistance and eldercare assistance.
 Positive work environment: CGCE creates a positive work environment by
promoting diversity and inclusion, encouraging teamwork and collaboration, and
providing employees with opportunities to give back to the community.
Analyses the stress management techniques adopted by the HR of the
organization
Crompton Greaves Consumer Company (CGCE) adopts a variety of stress management
techniques to help employees manage stress. These techniques include:

 Employee assistance programs: CGCE offers a variety of employee assistance


programs (EAPs) to help employees manage stress. EAPs are confidential programs
that provide employees with access to counselling, support groups, and other
resources to help them cope with stress and other personal problems.
 Stress management training: CGCE offers stress management training to employees
to help them learn how to identify and manage stress. The training covers topics such
as the causes of stress, the effects of stress, and coping mechanisms for stress.
 Flexible work arrangements: CGCE offers a variety of flexible work arrangements,
such as telecommuting and compressed workweeks. Flexible work arrangements can
help employees to reduce stress by giving them more control over their work-life
balance.
 Employee well-being programs: CGCE offers a variety of employee well-being
programs to help employees maintain a healthy lifestyle. These programs include on-
site fitness centres, wellness classes, and health screenings.
 Positive work environment: CGCE creates a positive work environment by
promoting diversity and inclusion, encouraging teamwork and collaboration, and
providing employees with opportunities to give back to the community. A positive
work environment can help to reduce stress by creating a supportive and supportive
atmosphere.

Here are some specific examples of how CGCE implements these stress management
techniques:

 Employee assistance programs: CGCE's EAP is administered by a third-party


provider. Employees can access the EAP by calling a toll-free number or by visiting
the EAP's website. The EAP provides employees with confidential counseling,
support groups, and other resources to help them cope with stress and other personal
problems.
 Stress management training: CGCE offers stress management training to employees
on a regular basis. The training is conducted by a qualified instructor and covers
topics such as the causes of stress, the effects of stress, and coping mechanisms for
stress.
 Flexible work arrangements: CGCE offers a variety of flexible work arrangements,
such as telecommuting and compressed workweeks. Employees can request flexible
work arrangements by submitting a request to their manager. Managers are
encouraged to approve flexible work arrangements whenever possible.
 Employee well-being programs: CGCE offers a variety of employee well-being
programs to help employees maintain a healthy lifestyle. These programs include on-
site fitness centres, wellness classes, and health screenings. Employees are
encouraged to participate in these programs to improve their health and well-being.

Additional thoughts

In addition to the stress management techniques listed above, CGCE can also help employees
to manage stress by:

 Setting realistic expectations: CGCE can help employees to manage stress by setting
realistic expectations. Managers should be clear about their expectations for
employees and provide them with the resources and support they need to meet those
expectations.
 Providing feedback and coaching: CGCE can help employees to manage stress by
providing them with regular feedback and coaching. Feedback and coaching can help
employees to identify their strengths and weaknesses, develop their skills, and
improve their performance.
 Creating a supportive work environment: CGCE can help employees to manage
stress by creating a supportive work environment. Managers should promote
teamwork, collaboration, and respect in the workplace. They should also be open to
listening to employee feedback and addressing employee concerns.
Discuss about the employee engagement activities conducted in the
organization
romp ton Greaves Consumer Company (CGCE) conducts a variety of employee engagement
activities to keep its employees engaged and motivated. These activities include:

 Regular employee surveys: CGCE conducts regular employee surveys to gather


feedback from employees on their satisfaction with the company, their work
environment, and their engagement levels. The company uses the feedback from these
surveys to identify areas where it can improve and to develop employee engagement
initiatives.
 Employee recognition programs: CGCE has a number of employee recognition
programs to recognize and reward employees for their performance and contributions
to the company. These programs include annual employee recognition awards, spot
awards, and employee referral bonuses.
 Employee development programs: CGCE offers a variety of employee development
programs to help employees learn new skills and advance their careers. These
programs include on-the-job training, off-the-job training, and mentorship programs.
 Team-building activities: CGCE organizes a variety of team-building activities to
help employees build relationships and work together more effectively. These
activities include off-sites, social events, and volunteer opportunities.
 Employee resource groups (ERGs): CGCE has a number of ERGs that support
employees with shared interests or experiences. These ERGs provide employees with
opportunities to network, share ideas, and support each other.
Here are some specific examples of employee engagement activities that CGCE
conducts:

 Annual employee recognition awards: CGCE holds an annual employee recognition


award ceremony to recognize and reward employees for their performance and
contributions to the company. Employees are nominated for awards by their peers and
managers. The awards are presented at a ceremony attended by all employees.
 Spot awards: CGCE has a number of spot awards that can be given to employees
throughout the year for outstanding performance or contributions. Spot awards are
typically small gifts or monetary awards.
 Employee referral bonuses: CGCE offers employee referral bonuses to employees
who refer qualified candidates for open positions at the company. The referral bonus
is paid to the employee if the preferred candidate is hired and completes their
probationary period.
 On-the-job training: CGCE offers on-the-job training to employees to help them
learn new skills and develop their careers. On-the-job training is typically provided by
a more experienced employee or manager.
 Mentorship programs: CGCE offers mentorship programs to match employees with
more experienced employees who can provide them with guidance and support.
 Off-sites: CGCE organizes off-site events for employees to get together outside of
work and build relationships. Off-sites can include activities such as bowling, hiking,
and laser tag.
 Social events: CGCE organizes social events for employees to socialize and have fun
outside of work. Social events can include parties, potlucks, and sporting events.
 Volunteer opportunities: CGCE organizes volunteer opportunities for employees to
give back to the community. Volunteer opportunities can include activities such as
cleaning up a park, serving meals at a soup kitchen, or building homes for Habitat for
Humanity.
 Employee resource groups (ERGs): CGCE has a number of ERGs that support
employees with shared interests or experiences. Some of the ERGs at CGCE include
the Women's Leadership Network, the Pride Alliance, and the Veterans ERG. ERGs
provide employees with opportunities to network, share ideas, and support each other.
Discuss about the Work-Life Balance of employees at the organization
Crompton Greaves Consumer Company (CGCE) is committed to providing its employees
with a good work-life balance. The company offers a variety of programs and benefits to help
employees achieve a better balance between their work and personal lives.

Some of the work-life balance programs and benefits offered by CGCE include:

 Flexible work arrangements: CGCE offers a variety of flexible work


arrangements, such as telecommuting, compressed workweeks, and flexitime. These
arrangements give employees more control over their work schedules, which can help
them to reduce stress and improve their work-life balance.
 Paid time off: CGCE offers its employees a generous amount of paid time
off, including vacation days, sick days, and personal days. This time off can be used
to relax, recharge, and spend time with family and friends.
 Employee assistance programs: CGCE offers its employees access to employee
assistance programs (EAPs). EAPs are confidential programs that provide employees
with access to counselling, support groups, and other resources to help them cope
with stress and other personal problems.
 On-site fitness centres: CGCE has on-site fitness centres at many of its
locations. This makes it easy for employees to get exercise and stay healthy.
 Wellness programs: CGCE offers its employees a variety of wellness programs, such
as health screenings, wellness classes, and nutrition counselling. These programs can
help employees to improve their health and well-being.

CGCE also has a culture that supports work-life balance. Managers are encouraged to be
flexible and to work with employees to find work-life balance solutions that meet their
individual needs.

Here are some specific examples of how CGCE employees achieve a good
work-life balance:

 Telecommuting: Many CGCE employees telecommute on a regular basis. This


allows them to work from home, which can save them time and money on
commuting. It also gives them more flexibility to manage their work and personal
lives.
 Compressed workweeks: Some CGCE employees work compressed
workweeks. This means that they work four 10-hour days instead of five 8-hour
days. This gives them an extra day off each week, which they can use to
relax, recharge, or spend time with family and friends.
 Flexitime: Some CGCE employees have flexitime schedules. This means that they
can choose their own start and end times, within certain limits. This gives them more
control over their work schedules and allows them to better manage their work and
personal lives.
 Taking paid time off: CGCE employees are encouraged to take their paid time
off. Managers are supportive of employees taking time off to relax, recharge, and
spend time with family and friends.
 Using employee assistance programs: CGCE employees are encouraged to use the
company's EAPs if they need help coping with stress or other personal
problems. EAPs can provide employees with confidential counselling, support
groups, and other resources to help them improve their well-being.
 Using on-site fitness centres: CGCE employees take advantage of the company's on-
site fitness centres to get exercise and stay healthy. This helps them to improve their
physical and mental health, which can lead to a better work-life balance.
 Participating in wellness programs: CGCE employees participate in the company's
wellness programs to improve their health and well-being. This can lead to a better
work-life balance, as employees are healthier and have more energy.
Discuss about diversity & inclusion followed in the organization
Diversity and inclusion at Crompton Greaves Consumer Company (CGCE) is a key focus
area. The company believes that a diverse and inclusive workforce is essential to its success,
and has a number of policies and programs in place to promote diversity and inclusion in the
workplace.

Diversity and inclusion policies and programs at CGCE include:

 Equal opportunity employment: CGCE is an equal opportunity employer and does


not discriminate on the basis of race, colour, religion, sex, national origin, age,
disability, sexual orientation, gender identity, or veteran status.
 Diversity training: CGCE provides diversity training to all employees. The training
covers topics such as unconscious bias, inclusive communication, and
microaggressions.
 Employee resource groups (ERGs): CGCE has a number of ERGs that support
employees with shared identities or experiences. ERGs provide employees with
opportunities to network, share ideas, and support each other.
 Inclusive hiring practices: CGCE uses inclusive hiring practices to ensure that a
diverse pool of candidates is considered for all open positions.

Here are some specific examples of how CGCE promotes diversity and inclusion in the
workplace:

 Equal opportunity employment: CGCE's equal opportunity employment policy is


enforced by the company's human resources department. The company also has a
diverse hiring committee that reviews all applications for open positions.
 Diversity training: CGCE's diversity training is conducted by a qualified instructor
and covers topics such as unconscious bias, inclusive communication, and
microaggressions. Employees are required to complete the training within their first
six months of employment.
 Employee resource groups (ERGs): CGCE's ERGs are led by employees and
supported by the company. The ERGs provide employees with opportunities to
network, share ideas, and support each other. CGCE's ERGs include the Women's
Leadership Network, the Pride Alliance, and the Veterans ERG.
 Inclusive hiring practices: CGCE's inclusive hiring practices include posting job
openings on diversity-focused websites and job boards, and using a diverse hiring
committee. The company also uses a blind resume review process to reduce bias in
the hiring process.

Here are some additional examples of how CGCE promotes diversity and inclusion in the
workplace:
 Mentorship programs: CGCE has mentorship programs to match employees with
more experienced employees who can provide them with guidance and support. These
programs can help employees to develop their skills and careers, and to advance into
leadership positions.
 Flexible work arrangements: CGCE offers a variety of flexible work arrangements,
such as telecommuting, compressed workweeks, and flexitime. These arrangements
can help employees to balance their work and personal lives, and to better manage
their time.
 Inclusive employee benefits: CGCE offers a variety of inclusive employee benefits,
such as paid parental leave, same-sex partner benefits, and disability benefits. These
benefits help employees to feel supported and valued, and to create a more inclusive
workplace.

Discuss about the organization’s group dynamics

CGCE's group dynamic is also influenced by the company's leadership style. CGCE's leaders
are generally supportive and empowering. They encourage employees to share their ideas and
to take risks. This helps to create a positive and productive work environment.

Here are some specific examples of CGCE's strong group dynamic:

 Teamwork: CGCE employees are encouraged to work together as teams. The


company has a number of cross-functional teams that work on various projects.
Employees are also encouraged to collaborate with each other on their individual
projects.
 Collaboration: CGCE employees are encouraged to collaborate with each other. The
company has a number of collaboration tools and resources that employees can use to
share information and work together on projects.
 Respect: CGCE employees are treated with respect. The company has a zero-
tolerance policy for harassment and discrimination. Employees are also encouraged to
respect each other's opinions and ideas.

Here are some of the benefits of CGCE's strong group dynamic:

 Increased employee engagement and productivity: CGCE employees are engaged


and productive because they feel valued and respected. They also enjoy working with
their colleagues and feel like they are part of a team.
 Enhanced innovation and creativity: CGCE employees are encouraged to share
their ideas and to collaborate with each other. This leads to increased innovation and
creativity, as employees are able to build on each other's ideas.
 Improved customer service: CGCE's strong group dynamic helps to improve
customer service. Employees are able to work together to solve customer problems
and to provide customers with the best possible service.

Conclusion

Organization culture and ethics: CGCE has a strong organizational culture that is based on
the values of customer focus, innovation, integrity, teamwork, and respect. The company also
has a number of policies and procedures in place to promote ethical behaviour and prevent
corruption. Motivational techniques and strategies: CGCE use a variety of motivational techniques
and strategies to motivate its employees, including goal setting, performance recognition,
career development, work-life balance, and a positive work environment.

Stress management techniques: CGCE offers a variety of stress management techniques to


help its employees manage stress, including employee assistance programs, stress
management training, flexible work arrangements, employee well-being programs, and a
positive work environment. Employee engagement activities: CGCE conducts a variety of
employee engagement activities to keep its employees engaged and motivated, including
regular employee surveys, employee recognition programs, employee development programs,
team-building activities, and employee resource groups.

Work-life balance: CGCE is committed to providing its employees with a good work-life
balance. The company offers a variety of programs and benefits to help employees achieve a
better balance between their work and personal lives, such as flexible work arrangements,
paid time off, employee assistance programs, on-site fitness centers, and wellness programs.

Group dynamics: CGCE has a strong group dynamic. The company's employees are
generally supportive of each other and work well together to achieve common goals. This is
due in part to the company's culture, which values teamwork, collaboration, and respect. It is
also due to the company's leadership style, which is supportive and empowering.

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