Mumbai-based Crompton Greaves Consumer Electricals Limited on Thursday said it has secured a Rs 25.44 crore order under PM Kusum Scheme from the Haryana government for solar pumps. The order will be executed within 120 days.

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The electrical equipment company has been granted the inaugural work order of supplying, installing, and commissioning of 7.5 HP and 10 HP Solar Submersible Water Pumping Systems by the New & Renewable Energy Department Haryana and HAREDA.

"This milestone is part of a broader initiative led by SECI (Solar Energy Corporation of India) and MNRE (Ministry of New & Renewable Energy), aiming to replace and establish new connections for 6.6 lakh pumps across India," the company said in a filing.

With an aim to create significant footprints in the renewable energy segment, the company is aiming to deploy a significant number of solar pumps under PM Kusum Scheme in the next two years, supported by a wide spread after sales service network and technically qualified channel partners across India.

This is achieved through state of the art R&D and manufacturing facilities and a rigorous 5-stage product development process, resulting in a wide range of highly energy-efficient and innovative solar water pumps.

"At Crompton, we take immense pride in our legacy of bringing innovation that enrichesthe lives of our consumers. Pumps are a critical application in delivering water and ensuring uninterrupted flow of essential utilities. While we have established ourselves as a leader in the residential pumps market, this achievement will further reinforce our leadership position as a frontrunner in the solar water pumps category," said Rajat Chopra, VP and Business Head, Pumps at Crompton Greaves Consumer Electricals.

"This strategic move underlines our commitment to delivering cutting-edge and sustainable solutions while also ensuring the economic viability of farming operations. We are thrilled to be a part of this transformative journey, harnessing the potential of solar energy to revolutionize the agricultural pumps industry," Chopra said.

About the stock

Brokerage HDFC Securities remains optimistic about healthy growth in the consumer electrical sector over the next five to seven years because of favourable macroeconomic drivers like higher GDP growth, rising rural electrification, increased urbanisation, growth in affordable housing, lower inflation, higher disposable income as well as rising trend of product upgradation by urban consumers.

"Crompton Greaves Consumer Electricals Ltd (CGCEL) is well placed to reap the benefits of upturn in the industry driven by the revitalised Crompton brand, increasing product innovation and augmenting distribution network," it said.

The brokerage thinks the base case fair value of the stock is Rs 344 and the bull case fair value of is Rs 367. "Investors can buy the in stock Rs 308-314 band and add more on dips in Rs 270-276 band," it said.

Shares of Crompton Greaves Consumer Electricls Ltd were trading 1.21 percent higher at Rs 313 apiece in Thursday's afternoon deals. The stock has gained 4.40 percent in the last five trading sessions.

First Published:Sept 7, 2023 2:11 PM IST