Crompton Greaves: Debt-laden Loss-making Company to a Successful Global Company


Crompton Greaves: Debt-laden Loss-making Company to a Successful Global Company
Case Code: BSTR379
Case Length: 25 Pages
Period: 2000-2010
Pub Date: 2010
Teaching Note: Not Available
 Price: Rs.500
Organization: Crompton Greaves Ltd.
Industry: Electrical Equipment and Engineering
Countries: India; Global
Themes: Turnaround, Restructuring, Globalization
Crompton Greaves: Debt-laden Loss-making Company to a Successful Global Company
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case gives a comprehensive account of the loss incurred by Crompton Greaves Ltd. (CGL) in 2000, and the restructuring measure adopted by the company that led to its spectacular turnaround. CGL is one of the leading companies in power equipments and appliances manufacturing based in India. Set up in pre-independent India, the company was able to establish itself as a strong player in the domestic market. When it ran into losses for two consecutive years in 2000 and 2001, many analysts and investors were ready to write it off. But CGL introduced effective restructuring measures which resulted in the company coming back into profits in 2002. CGL then focused on globalization. Going forward, the company aimed to increase its presence in international markets and become one of the top five players in its industry globally.

Issues

The case is structured to achieve the following teaching objectives

  • To understand the issues and challenges in turning around an ailing company
  • To understand the issues and challenges in restructuring a company
  • To understand the issues and challenges in foraying into global markets from the perspective on an Indian firm and how Crompton Greaves made this transition
  • Explore strategies that Crompton Greaves could adopt in the future

Contents

Keywords

Turnaround, Restructuring, Core Competence, Globalization, Productivity, Maynard Operations Sequence Technique, Value engineering, Treasury and working capital management, Inventory and debtors' management, Strategic acquisitions, Corporate Communications, Electrical equipment and engineering industry, Crompton Greaves

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