Crompton Greaves expects 10% growth in fiscal `99

MUMBAI, NOV 7: Crompton Greaves has posted a 11 per cent growth in power systems, nine per cent in industrial systems and seven per cent in consumer products between April and October this year. The digital group though has reported a 36 per cent fall from last year’s level, according to chairman and managing director KK Nohria.

Crompton Greaves could grow by between 8-10 per cent this year to touch a turnover of Rs 1,700-1,730 crore. These projections have been made on the assumption that there will be no further slowdown in economic growth.Nohria said at a press conference here on Saturday that the company was likely to divest further in some of its joint ventures to fund the buyback. The total investment in these ventures is around Rs 150 crore which today is valued at about Rs 500 crore, he added. He said that the company will finalise its buyback plans in six months and is presently examining the guidelines while seeking clarifications from the Securities and Exchange Board of India.

Due tocontinuous weakening of its stock, Crompton Greaves is considering another restructuring to boost stock value. "We expect the value of the share will go up to Rs 200 by 2001 from the present Rs 31 per share," Nohria speculated.

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Meanwhile, the company he said has introduced several measures to cut costs. Slimming down the workforce is one of these and around 1,000 employees have stepped down in the six months through voluntary retirement schemes. The restructuring will be completed in a year and a half, he said.

The Delhi-based Thapars hold 30 per cent in Crompton Greaves with BTR of the UK accounting for 13 per cent. Foreign financial institutions have around nine per cent, the GDR holding is around 13 per cent, 19 per cent lies with the public and Indian corporates while the balance is held by local financial institutions.