Crompton Greaves (CG) today said it is planning to cut 260 jobs at its Belgium operations out of total 730 and has initiated consultation process with the Belgian Works Council for the proposed reduction
Crompton Greaves (CG) today said it is planning to cut 260 jobs at its Belgium operations out of total 730 and has initiated consultation process with the Belgian Works Council for the proposed reduction.
In a BSE filing, the company said the transformer market in Western Europe is facing both, over capacity and price pressure and in this scenario, the downsizing is required to remain competitive and sustainable.
"... it is proposed that CG's Belgium operations be optimised for cost advantages, through administrative cost reduction measures and a right-sizing of its blue collar and white collar workforce.
"Approximately 260 employees are contemplated to be covered under the right-sizing exercise, out of a total of approximately 730 employees," the company said in the filing.
It further said that to carry the exercise, the company has commenced an information and consultation process with the Belgian Works Council as required by the Belgium Labour Regulations.
Crompton Greaves provides electrical products, systems and services for Utilities, Power Generation, Industrial and Consumers. The company, which is part of USD 4 billion Avantha group, has presence in 21 countries and employs more than 15000 persons.
In 2011-12, the company had reported a consolidated net profit of Rs 373.59 crore and consolidated net sales of Rs 11,248.58 crore.
Shares of the company closed today at Rs 121.20 apiece on the BSE, up 1.38 per cent from the previous close.
Crompton Greave stock price
On July 28, 2014, Crompton Greaves closed at Rs 190.90, down Rs 2.05, or 1.06 percent. The 52-week high of the share was Rs 218.55 and the 52-week low was Rs 75.25.
The company's trailing 12-month (TTM) EPS was at Rs 8.31 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 22.97. The latest book value of the company is Rs 53.55 per share. At current value, the price-to-book value of the company is 3.56.
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