CG Consumer conducted their earnings con-call today at 11:00 am
" A leading kitchen appliance company with project to expand itself"
Here are the key highlights π
" A leading kitchen appliance company with project to expand itself"
Here are the key highlights π
- Continue period sessions were take by the company to solve all concerns faced by employees in this hard times.
- All our factories are at a higher capacity utilisation.
- Company have continued to invest in long term strategic choices
- All our factories are at a higher capacity utilisation.
- Company have continued to invest in long term strategic choices
- On go to market side the company have better trade partners relationship and did work to improve the retail points as well
- Companies leverage technology to take better decisions
- Company is increasing their channel size.
- Companies leverage technology to take better decisions
- Company is increasing their channel size.
Focus of premiumisation
- Premium fan have grown 51% this quarter
- On fans new inintiaves are been taken for better energy saving , anti dust along with better quality distribution.
- premium fans moved from 7 to 17% of the total business.
- Premium fan have grown 51% this quarter
- On fans new inintiaves are been taken for better energy saving , anti dust along with better quality distribution.
- premium fans moved from 7 to 17% of the total business.
- The overall fans portfolio have shown a great growth
-In October - November company witnessed a growth of 9%.
- Other sectors recovery have bought positive news for the company.
-In October - November company witnessed a growth of 9%.
- Other sectors recovery have bought positive news for the company.
Portfolio , segments and areas
- The ECG portfolio have given a steller volume growth of over 13% by the company.
- The B2B business have shown slow growth this quarter but will be coverd up soon
- The company have a strong hold over their B2C business.
- The ECG portfolio have given a steller volume growth of over 13% by the company.
- The B2B business have shown slow growth this quarter but will be coverd up soon
- The company have a strong hold over their B2C business.
- Supply chain is much better now. Company has the plants running at 30-40% better capacity as compared to last year. Overall supply has no major issue. There is better availability of labor now.
Rural areas
- Rural sales in Q3 has doubled as compared to same quarter last year.
- In phase 1 company plans to cover 400 towns. Company has covered 75% of it.
- Company will continue to invest in both rural and e commerce channel
- Rural sales in Q3 has doubled as compared to same quarter last year.
- In phase 1 company plans to cover 400 towns. Company has covered 75% of it.
- Company will continue to invest in both rural and e commerce channel
Management work
- Effective management of working capital was done by company.
- The company have maintained enough funds to conduct investment all accross areas
- Effective management of working capital was done by company.
- The company have maintained enough funds to conduct investment all accross areas
Cost related factors
- The company have taken cost reduction program for better results as there have been a increase in item costs
- Company is facing head wind in terms of increase in prices of raw material. Company has taken a price increase of 5-8% effective January.
- The company have taken cost reduction program for better results as there have been a increase in item costs
- Company is facing head wind in terms of increase in prices of raw material. Company has taken a price increase of 5-8% effective January.
Related to pump and grazer segment
- Pumps: focus in all innovation and there was launch of various products with superior performance
-Appliance business has continued the growth of 45%, geysers business grew at an exponential basis , being a leader in it.
- Pumps: focus in all innovation and there was launch of various products with superior performance
-Appliance business has continued the growth of 45%, geysers business grew at an exponential basis , being a leader in it.
- Previous investment have shown company a positive response for business.
Lighting part
- Major growth is volume led.
- Convention lighting contribute 15% of the companies business but is declining
- Cost improvement will help them sustain their double digit margins.
Lighting part
- Major growth is volume led.
- Convention lighting contribute 15% of the companies business but is declining
- Cost improvement will help them sustain their double digit margins.
- Company has opportunities to invest as to get better margins.
- Company have clear plans to drive their top line much harder.
- On PLI scheme company awaits for the contours of the scheme.
- Company have clear plans to drive their top line much harder.
- On PLI scheme company awaits for the contours of the scheme.
- Company has total import bill of around 200 crore and
- Is importing mostly for the lighting segment.
- Is importing mostly for the lighting segment.
Margins and impact of commodities
- Last quarter there was a significant cost impact and company have take all related measures by -Passing cost to consumer, -Cost decrease and -Mix.
- Last quarter there was a significant cost impact and company have take all related measures by -Passing cost to consumer, -Cost decrease and -Mix.
Improtant note by company
- Commodity cycle works both ways so they take a call on medium term basis rather then near term.
- Commodity cycle works both ways so they take a call on medium term basis rather then near term.
- Company in process of making a long term plan where it will focus on from where to source the raw material. Company has to change the scale. Company will be deciding on the sourcing. Service, quality, propriety knowledge and cost these factors will help in designing of product.
New business areas
- To sustain the gains, it is critical for the company to launch the meaningful new products and continue to grow according to the plans. It is a consistent effort and not a couple of quarters plan.
- To sustain the gains, it is critical for the company to launch the meaningful new products and continue to grow according to the plans. It is a consistent effort and not a couple of quarters plan.
- Company is planning to enter into new kitchen appliances segment like mixers and grasers , as they find opportunity in them.
Brand recognition
- Focus on retail audit market share as as per that data the brand of fan which have growth most is of Crompton
- On part of the consumer, consumer wants to buy the leading brands. So the benefit is for the leading brands. Consumer has gained more than anyone.
- Focus on retail audit market share as as per that data the brand of fan which have growth most is of Crompton
- On part of the consumer, consumer wants to buy the leading brands. So the benefit is for the leading brands. Consumer has gained more than anyone.
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