Tracking The Journey Of CG Power In Durables And Its Likely Impact On Incumbents: ICICI Securities


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We analyse the progress of CG Power and Industrial Solutions Ltd. in consumer durables as it completes two years after the launch in H2 FY22. We note:

  1. It has reached revenue of Rs ~4 billion and is currently profitable,

  2. it has 2% plus market share in fans, 3% plus in pumps and geysers have just been introduced and

  3. its products are available pan-India and manufacturing is outsourced.

Since CG Power is generating profitability and its product pricing is comparable with peers, we do not model any material impact on industry profitability in the short term.

However, success of new formidable player like CG Power is likely to hurt long-term revenue prospects of all incumbents.

We model Crompton Consumer to be relatively more impacted as consumers may get confused between Crompton and CG brands, in our view.

We will closely monitor the progress of CG Power in consumer durables segment. Our top pick is Havells India Ltd.

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