Crompton Aims to Double Revenue

Crompton Greaves Consumer Electricals is transforming into a tech-led home-solutions player through its 'Crompton 2.0' initiative, which includes the launch of a super-premium brand Rhion and increased investments in innovation and consumer research. The company aims to nearly double its revenue to ₹15,000 crore in the next five years.

The newly launched Rhion brand is expected to generate revenue of ₹250-300 crore over the next three years. Crompton has invested around ₹30 crore in Rhion so far, primarily towards product development, brand initiatives, and tools and dies. The company has also spent ₹100-120 crore on expanding its manufacturing capabilities.

Crompton estimates India’s domestic electric water-purifier market at ₹5,565 crore, with reverse osmosis (RO) systems accounting for nearly 85% of the category. The company has invested ₹112 crore in its innovation centre last year, bringing its total investment to approximately ₹312 crore over the three-year period. This investment has focused on enhancing innovation capabilities and developing products aligned with evolving consumer needs.

The company conducted an extensive consumer study involving 18,000 consumers, more than 740 hours of consumer videos and immersions, multiple home visits and over 30 million data points. This research has helped Crompton to develop products that meet the changing needs of consumers. The company has also increased brand spending to 3.2% of revenue from 1.6% and annual innovation expenditure has risen to around ₹100 crore from ₹30 crore.

## Why it matters Crompton's transformation into a tech-led home-solutions player is significant as it aims to move beyond its traditional business of fans and pumps. The company's investment in innovation and consumer research is expected to help it to develop new products and services that meet the changing needs of consumers. With the launch of Rhion, Crompton is entering the super-premium segment, which is expected to contribute to its revenue growth.

The company's focus on innovation and consumer research is also expected to help it to compete with other players in the market. Crompton's investment in its innovation centre and its partnership with global leaders are expected to enhance its innovation capabilities. The company's transformation is also expected to create new opportunities for growth and expansion.

## What happens next Crompton will continue to focus on innovation and consumer research as it aims to achieve its revenue target of ₹15,000 crore in the next five years. The company will also continue to expand its manufacturing capabilities and increase its brand spending. With the launch of Rhion, Crompton is expected to gain a significant share of the super-premium segment. The company's transformation into a tech-led home-solutions player is expected to create new opportunities for growth and expansion.