Shares of Crompton Greaves Consumer Electricals (CGCEL) hit a 52-week low of Rs 256.05, falling in intraday trade on Tuesday after the company announced the resignation of Mathew Job as CEO. 13%. & Company directors to pursue other professional interests.
Shares of the appliance company fell below the previous low of Rs 278.10 hit on March 20, 2023.
“Mathew Job has tendered his resignation as Executive Director of the Board, effective after the close of business on April 24, 2023, and as Chief Executive Officer of the Company, his last term as Chief Executive Officer. The day is a few hours after business hours end April 30, 2023, to pursue other career interests,” Crompton Greaves said in a bourse filing.
CGCEL also announced that Shantanu Khosla, the company’s Managing Director (MD), has been appointed and promoted to Executive Vice Chairman of the Company’s Board of Directors for one year commencing May 1, 2023.
In his new role, Khosla will provide valuable advice and advice to the new managing director on strategic issues and support the integration of Crompton and Butterfly, the company said.
Meanwhile, CGCEL has appointed Promeet Ghosh as managing director and chief executive officer for five years. Ghosh’s last position was with Temasek as corporate vice president until March 2022; thereafter, he served as an advisor to Temasek until March 2023.
Following the company demerger and Advent and Temasek buying the promoter’s stake, Ghosh was closely involved in its board of directors as it continued establishing itself as a major speciality consumer electronics company, CGCEL said.
Job joined CGCEL in September 2015 and has driven the company’s performance during his tenure. CGCEL’s market capitalization has grown from around Rs 5,000 crore to Rs 18,664 crore during this period. However, CGCEL’s core business and margins remain under pressure. Revenue grew at a lower CAGR of 6% in FY17-22 due to poor performance of core businesses such as ECD and lighting. The company’s pump business was hit by demand pressure in subsequent quarters.
On the other hand, Ghosh spent 18 years at DSP Merrill Lynch, helping build its M&A practice, and was a Temasek vice president for nearly a decade. Going forward, any material change in the growth outlook and improvement in margin guidance from the new management will be a key monitor for the company, ICICI Securities said in a report.
CGCEL is one of India’s leading consumer goods companies with two business segments – Lighting and Consumer Durable Electronics. The company sells its products under the brand name ‘Crompton’ in India and some export markets.