Butterfly Gandhimathi acquisition to help become leading kitchen appliance brand: Crompton Greaves

Shantanu Khosla, Managing Director, Crompton Greaves Consumer Electricals Limited, on Thursday, said that acquiring Butterfly Gandhimathi will help the company to expand its reach. He explained that the company’s target is to become a pioneer in kitchen appliances segment and also have the best-in-class cost as well. Elaborating further, he said that small appliances are Butterfly’s forte, and going ahead, it will form 20-25 percent of the company’s business in the future.

"Butterfly is a very strong brand in the small appliances space. On a national basis, they have about 10 share of this Rs 8,000 crore market with particular strength in the South. This immediately gives us scale with the Butterfly brand to quickly transform our business in this category; it will immediately become 24-25 percent of our total business. Though, we're talking about small appliances right now, this is a play in the kitchen. In the long term, we see a huge opportunity in becoming the leading brand in kitchen appliances. We do aim to become the best-in-class from a cost point of view," he said.

Crompton Greaves Consumer Electricals Ltd has announced the acquisition of a controlling stake in Butterfly Gandhimathi Appliances Ltd. The company will acquire up to 55 percent stake in Butterfly Gandhimathi Appliances at Rs 1,403 per equity share, aggregating up to Rs 1,379.68 crore.