Crompton Greaves Ltd.

Crompton Greaves Ltd.

Sales (2007-2008) =Rs.4200 crores (rounded off)

Net profit after tax =Rs.300 crores (rounded off)

CSR Budget= Not Available

Karmayog 2008 CSR Rating: 2/5

CSR activities:

The Company�s CSR eff orts during 2007-08 have continued to revolve around its CSR Statement of Intent, which focuses on three areas: the Workplace, the Communities and the Environment

It is the Crompton Greaves� expressed intention that it will conduct its business and achieve commercial success, together with social responsibility to the communities that surround its locations and society at large. The Company�s CSR efforts during 2007-08 have continued to revolve around its CSR Statement of Intent, which focuses on three areas: the Workplace, the Communities and the Environment.

At the Workplace

Crompton Greaves� eff orts have focused on health and safety. These involve periodic medical check-ups for all its employees, and an innovative hospitalisation insurance scheme together with a serious illness coverage. Its commitment to spreading its message on HIV/ AIDS has been widely demonstrated through an articulated HIV/AIDS Policy which was released on 1 August 2007. During the year, the Company has installed 17 condom vending machines at its various plants. Crompton Greaves has also chosen three days every year, to be dedicated to CSR, with the intense involvement of all employees. These are:

The world Environment Day . June 5th

In 2007, activities included an intensified tree plantation drive in the immediate vicinities of the plants, talks on environment and videos on global warming, creation of compost vermiculture pits, as well as quiz and painting competitions and street plays to spread the �Green� message to the greatest extent possible.

Blood Donation Day, 1 October. Blood Donation Camps were organised at all the Company�s units and office locations through various reputed blood banks. Wide publicity to the event and strong management support resulted in approximately 1,100 bottles of blood being donated by the employees.

World AIDS Day, 1 December. The Company renewed its dedication to be considerate to employees afflicted with HIV/AIDS, and to continuously create increased awareness about the illness. The activities included organisation of a rally, distribution of literature and thematic cultural programmes for employees as well as casual labour, truckers and the surrounding communities.

Communities

The Company continues to make its presence felt in the communities which surround its units through support for projects and sponsorship of identified causes based on a Needs Analysis. Given below are some the activities that took place during 2007-08:

At the S6 Division (AURANGABAD) The first phase of Project Surya has been completed, which has illuminated the village of Shevta with 10 solar street lights. These not only serve the village community, but have provided students of the village with lighting to study at night.

At the M7 Division (MANDIDEEP) This Division has adopted the village of Ratanpur. During the year, to improve the safety of students at the local school, a huge transformer was shifted from the centre of the school ground and re-installed at a safe distance outside. The bore-well pipeline has been completely re-laid and now encircles the entire village, resulting in fairer distribution of water to all. Four solar streetlights have been also installed on a pilot basis. The unit continues to help the local community in mobilising panchayat (local self-government) funds.

At the T3 Division (MANDIDEEP) This Division has adopted the village of Gurari Ghat which adjoins Ratanpur. It is working on finishing the construction of the middle school which was left in an incomplete state, and to create a drainage system.

At the T2 Division (MALANPUR) Traffic congestion in the main area of Malanpur has been a concern for many years. Responding to this need, the Division has renovated the traffic island and beautified it.

Focus on Women Employment The Southern Regional Office at Chennai has collaborated with the Rotary Club to increase skills among the women of the village of Mathur. Three batches of sewing classes have already been completed and the women have been given sewing machines.

Besides these initiatives, every manufacturing unit of Crompton Greaves is actively engaged in reaching out to the communities around them by organizing periodical health checkups, eye camps, provision of free medicines and upgrading the facilities of several schools and orphanages in their locations by providing the Company�s products, computers and other benefits.

Environment

Energy savings, reduction of waste, re-use/ recycling of materials are key pillars in this area. Every manufacturing unit of Crompton Greaves has the ISO 14001 and OHSAS 18001 certification. With its focus on reduction of pollution, the Company has also self-initiated a PUC Certification check for all vehicles entering its plant complexes. At some plants, windmills have been installed on a trial basis, which supply energy to the internal pathways within the complex.

During 2007-08, Crompton Greaves received the prestigious Greentech Gold Award, 2007, in the Engineering Sector. This is a recgnition for the Company�s environmental management systems and development of green products and process technologies. The award acknowledged the Company�s efforts in developing eco-friendly products, packaging and processes, such as dry type transformers, BLDC motors and fans, CFL lamps and energy efficient luminaires, reduction of heating cycles by more than 50% through new brazing and sintering process technologies and premium efficiency motors as well as motors for ecofriendly vehicles.

Affirmative Action

As a signatory to the Confederation of Indian Industry (CII) Code on Affirmative Action, the Company has made a conscious effort to promote the progress and betterment of AA candidates through several dedicated programmes which have the potential to increase skill sets and consequently employability. During the year, the Company�s actions have concentrated on the following:

Working with Universities to Coach students Crompton Greaves continues its sponsorship of AA students from:

$ Maulana Azad College of Technology, Bhopal.

$ KK Wagh College of Engineering, Nasik.

$ Goa College of Engineering, Goa.

Through this initiative, the Company�s senior executives, supported by sponsored external faculty contribute to teaching these students about various core processes in Crompton Greaves� various lines of business. These include factory visits as well as an exposure to modern concepts of Six Sigma, CGPS and SAP.

Strenghtening Competence for Entrance This project was initiated last year by the LT Motors Division, Ahmednagar, and received an overwhelming response. Therefore, a second batch has been started, for 25 AA students to better equip them for the CET Examination.

ITI Sponsorships

At Nasik The first batch of 25 AA students completed their six-month electrician course in September 2007. The entire batch has been either employed by industry or started their own businesses. The Company also supported the candidates by providing them with comprehensive tool kits. The Joint Certification by the Government of India and Germany under the Indo-German Bilateral Agreement has resulted in a high level of credibility to this programme. Given the strong response, the Company sponsored a second batch, which has already commenced training on 2 March 2008.

At Gwalior At T2 Division, the chosen path has been vigorous shop-floor training of 24 AA candidates in the manufacture of distribution transformers. This exposure was for six months, and has considerably enhanced employability levels.

At Ahmednagar The Pumps Division has sponsored 23 students to attend six month courses at the local ITI, in the areas of lathe machines, electrical wiring, welding/fabrication, and mechanical/diesel operations.

Finishing school classes In collaboration with the CII, the Company has committed to sponsor a batch of 30 students to a three month finishing school programme to impart the soft-skills needed and help the students gain confi dence to face life in industry.

Source: http://www.cglonline.com/pdfs/ar0708/AR_07-08.pdf (Annual Report 07 – 08, Pg 19 to 21)

Contact Information:

Crompton Greaves Ltd.

CG House, 6th Floor, Dr. Annie Besant Road. Worli

Mumbai – 400 030

Maharashtra

Phone : 022 2423 7777

Fax : 022 2423 7788

E-mail :

Website : http://www.cglonline.com

Industry Sector: Electric Equipment

Products / Services: It has diversified extensively and is engaged in designing, manufacturing and marketing technologically advanced electrical products and services related to power generation, transmission and distribution, besides executing turnkey projects.

Other locations of factories / offices: Regional offices located in Delhi, Kolkata, Mumbai and Chennai.

Previous year�s CSR activities & rating