Crompton Greaves Consumer Electricals Ltd (CGCEL), a prominent name in the consumer durables industry, has successfully repaid the final installment of its Non-Convertible Debentures (NCDs), amounting to Rs. 300 crore. This achievement marks the full settlement of the total debt of Rs. 2,125 crore, which was initially undertaken for the acquisition of Butterfly Gandhimathi Appliances Ltd. (‘Butterfly’), in which CGCEL holds a 75% stake. With this, the company has fully repaid all five scheduled debt tranches, underscoring its commitment to reducing financial liabilities and minimizing interest expenses.
The successful repayment of the debt allows CGCEL to redirect its resources toward enhancing growth opportunities, fostering innovation, and providing greater returns to its shareholders. Kaleeswaran Arunachalam, CFO and Head of Strategy, emphasized the significance of this milestone, stating, “With the settlement of this final tranche, we are proud to announce that we are now debt-free. This marks a key moment for us, showcasing the strength of our business model and operational strategies that have consistently delivered strong cash flows.”
He continued, “This achievement also highlights our disciplined approach to capital allocation. We will continue to focus on investing in initiatives that promote sustainable growth, while ensuring that our financial stability remains a priority. Our ability to repay the debt in such a short period speaks to the robust nature of our cash flow and sets us up well for future growth.”
CGCEL’s commitment to maintaining a solid financial standing has been key to this accomplishment, positioning the company to seize future opportunities and continue driving long-term value for all stakeholders. The full debt repayment is a testament to the company’s disciplined financial approach and effective management strategies.
As a market leader in India, CGCEL holds the top position in fans and residential pumps and maintains significant leadership in other product categories. The company manufactures and markets a diverse range of consumer products, including fans, lighting solutions, pumps, and kitchen appliances. With a strong network of dealers and a reliable after-sales service system, CGCEL continues to provide its customers with quality products and services across the nation. This accomplishment strengthens CGCEL’s position as a financially sound and growth-focused company, ready to embrace new opportunities while ensuring its long-term profitability.
