CROMPTON GREAVES LTD. - Outcome of Annual Strategic Review Meeting

Crompton Greaves Ltd has informed BSE that the Board of Directors of the Company held its annual strategic review meeting on July 16, 2014 at Mechelen, Belgium. At this meeting, the Board proposed to demerge its Consumer Products business unit into a separate listed Company.<br/><br/>The Board believes that such a demerger will create better growth opportunities for its two large but significantly different businesses - Power, Industrial and Automation which is a B2B business, and the Consumer Products business which is B2C. The Board also believes that this will create a more flexible capital structure for the two businesses to grow independently, allow them to pursue more ambitious strategic goals and, thus, create further value for existing shareholders.<br/><br/>The Board has constituted a Committee of Directors to examine all relevant aspects of the process of demerger and listing and make suitable recommendations to the Board.