The shares of pumps and pumping equipment company, Crompton Greaves Consumer Electricals, plunged over 11 percent to a fresh 52-week low on Tuesday, a day after the company announced realignment in the top management. The company on Monday, said that the board of directors have appointed and elevated Shantanu Khosla as the Executive Vice Chairman on the Board, and thereafter Non-Executive Vice Chairman.
Khosla’s appointment is for one year from May 1, 2023 to April 30, 2024, and thereafter he shall assume the position of Non-Executive Vice Chairman till December 31, 2025 as per the terms approved by the Board, the company said in a statement. Furthermore, Khosla will be relinquishing his position as the company’s Managing Director (MD) with effect from May 1, 2023.
"On behalf of the Board, I look forward to Shantanu Khosla's valuable inputs and advice on strategic matters, in his role as an Executive Vice Chairman. Further, I would also like to thank Mr. Mathew Job for his leadership and many contributions in building up the Company over the past seven and a half years and wish him all the best for his future endeavors," said Hemant Nerurkar, Chairman of the Board, Crompton Greaves Consumer Electricals.
Board also announced that Mathew Job has tendered his resignation from the post of Executive Director on the Board with effect from April 25, 2023, and has also resigned as the Company’s CEO, effective May 1, 2023. Job stepped down to pursue other career interests, the company added.
Furthermore, the board has approved the appointment of Promeet Ghosh as Managing Director & CEO of the company for 5 years. His tenure as Executive Director on the Board is effective from today, April 24, 2023, and will assume charge as the Managing Director and CEO from May 1, 2023 until April 30, 2028.
Nerurkar further said, "On behalf of the Board of Directors, I would like to welcome Promeet Ghosh as the new MD & CEO of Crompton Greaves Consumer Electricals Limited. His deep understanding of businesses, and drivers of sustainable value as an engaged long term equity investor and an M&A Banker, his strong familiarity with the Company and his leadership style, will contribute greatly in the next phase of the Company’s journey. The Board of Directors looks forward to working with him and is confident that Ghosh will lead the Company to greater heights."
Ghosh is a graduate in Engineering (Electrical & Electronics) from National Institute of Technology, Trichy, and hold an MBA from Indian Institute of Management, Calcutta.
He has been an investment banker for two decades and has served as director on boards of various companies across sectors. Ghosh has worked with DSP Merrill Lynch for 18 years and helped build its M&A franchise. Prior to DSP Merrill Lynch, he served as Deputy Head of Temasek India.
On his appointment, Ghosh said, "I am honoured to be given the opportunity to join the strong management team at CGCEL. Crompton has enjoyed the enduring trust of consumers for over 90 years and is uniquely positioned to seize rapidly emerging market opportunities in the consumer electrical space. I look forward to working closely with the key stakeholders of Crompton in stewarding the Company in the next phase of its evolution, CGCEL2.0."
The company roped in Kaleeswaran Arunachalam as Chief Financial Officer (CFO) last year in August.
The stocks of Crompton Greaves settled at Rs 294.25 apiece, down nearly 0.15 percent, when the market closed today, April 24, 2023. However, the stock has been up over 0.40 percent this month to date.