Power equipment major Crompton Greaves (CG) has set up a new transformer manufacturing facility at Washington as the $4 billion (Rs 18,400 crore) Gautam Thapar-led Avantha Group steps on the pedal with its go-global drive launched five years ago.
The new facility, which would produce medium capacity transformers of 100 MVA (mega volt amperes), is part of the group’s broader corporate strategy to expand its footprint across different geographies.
In 2005, CG acquired Belgian firm Pauwels for Euro 32 million ( Rs 180 crore) enabling the company to leapfrog to the world’s top 10 power transformer companies and also became group’s first billion dollar firm.
It followed it up with by acquiring Hungarian switchgear major Ganz, Irish electricity sub-station equipment maker Microsol and French power distribution solutions company Sonomatra in quick succession.
The acquisitions were critical for the growth plans of the Group and also Crompton Greaves, later rebranded as CG.
Avantha Group is a thriving off-shoot one of India's oldest business houses, founded by Karam Chand Thapar in Kolkata eighty years ago.
Thapar represents the third generation of the family, the baton having been passed on to him by his uncle, L.M. Thapar and his father, B.M. Thapar.
“We had a product gap. Our existing facility at Washington had the capacity to produce 20 MVA and another facility at Canada produced large capacity transformers up to 750 MVA,” S.M. Trehan, managing director CG told Hindustan Times.
CG currently has a market cap of Rs 16, 284 crore and had clocked a revenue of Rs 5,284 crore in 2009-10.
“CG can do a lot more as it is a completely deleveraged company. The entire organisation system in CG is geared up for higher growth rate,” Thapar had told HT earlier this year.