Crompton Greaves to sell stake in CG Lucy Switchgear to its JV partner for Rs 40.2 crore

Crompton Greaves has sold its 50% holding in joint venture, CG Lucy Switchgear, to its partner W Lucy & Company for Rs 40.2 crore, the Avantha Group company said Thursday.

CG will divest its entire investment of 600,000 equity shares of Rs 10 each, which was made in 1994, in the share capital of CG Lucy Switchgear to W Lucy & Co according to the deal signed between the two JV partners.

Commenting on the deal, Avantha Group Company Compton Greaves Chief Executive Officer and Managing Director, Laurent Demortier said, “We believe that W Lucy is the best potential owner for ensuring a long term future for CG-Lucy. Combining the CG Lucy Indian operations and Lucy Electric business will allow CG-Lucy to focus on developing products specifically for the Indian market and expand its offering within the MV sector”.

CG Lucy Switchgear was established in 1994 as a 50-50 manufacturing joint venture between Crompton Greaves and W Lucy and Co of UK. The company has a unit in Nasik that manufactures Ring Main Units for the India market. Post divestment, Crompton Greaves will continue to have distributorship of Ring Main Units in India and will also continue to supply vacuum bottles and other products to CG-Lucy.

The deal forms part of CG’s strategy to focus on its B2B activity in the Power HV sector.