The current promoter holding is with the Thapar Group (among India’s top industrial houses) and the company forms part of the BM Thapar Group, which presently owns and controls: - Solaris Chemtech Ltd; - Crompton Greaves Ltd; - Greaves Ltd; and - English Indian Clays Ltd. At March 31, 2003, BM Thapar Group owned 38.7% of CGL while Penbryn International Ltd. held 13.7%. Non promoters including institutional investors, corporate bodies, mutual funds etc held 31.7%, while the remaining 15.9% was held by the general public.

The total project cost is estimated at $50 million equivalent. The proposed IFC investment is up to $25 million A Loan for IFC’s own account.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

CGL has 21 plants in 16 operational facilities across 10 locations, which are Mumbai, Malanpur, Mandideep, Nasik, Auragabad, Goa, Pitampur, Baroda, Ahmednagar and Bangalore. In addition, the EPD (turnkey projects divisions) and Luminaries (trading) divisions are based in Chennai and Mumbai respectively.

This is a category B project according to IFC''s procedure for environmental and social review of projects. Potential environmental, social and health and safety issues which were examined during appraisal, included: air and wastewater emissions; solid waste and hazardous materials handling; use of PCPs in transformers; fire and life safety; general worker health and safety; staff retrenchment; and, development and implementation of environmental and health and safety management systems to cover all group operations. Environmental and health and safety issues are appropriately addressed in all plants. Air and water emissions and solid wastes are properly handled and meet state requirements as well as IFC guidelines. CGL is in the process of ensuring that all plants become certified to ISO 9001, ISO 14001 and OHSAS 18001 standards. CGL will be required to strengthen its corporate environmental and health and safety management systems to achieve consistency of approach across all operations.
Location of environmental documents in locally affected community
State Central Library Town Hall Shahid Bhagat Singh Marg, Near Old Customs House, Opp. Horniman Circle, Fort, Mumbai 400 023 Office of the Chief Librarian City Central Library, South End Circle, Jayanagar, Bangalore 560 011 Office of the Collector North Goa District Panaji – Goa Moulana Azad Central Library Itwara Road Bhopal Smt. Hansa Mehta Library MS University Sayajiganj Baroda 390 005

The project will help one of the largest players in India in the electrical equipment and engineering industry to continue its financial and operational restructuring. This comprehensive modernization program will help CGL focus on those areas of business where it is most competitive, and also expand its export operations. Parts of the Company that are not strategic or competitive are being sold to other companies that can better utilize them. Other development impacts would include: Local Development: CGL is moving its operations from high costs areas (e.g., Mumbai) to low cost less developed areas. The manufacturing operations will help local economies not only through employment but also through the consumption of privately contracted specialty services, operations and maintenance assistance etc. Benefits to Employees: The project will ensure continued employment for several thousand people, despite rationalization in Mumbai, as well as generate new jobs in low income areas. Formal training, an important benefit to employees, combined with the on-job work experience, will allow workers to increase their skills and improve their earning potential. IFC’s role in this project is manifold. IFC would provide access to much needed long-term capital to assist CGL in implementing the ongoing modernization and restructuring, and in refinancing the company’s high-cost maturing debt, as other sources of long-term financing are generally not available to CGL in the current market scenario. IFC presence would support the turnaround strategy. This would help the company obtain a favorable credit rating in due course and enable it to access the Indian bond market for long-term funds on a sustainable basis in the future. IFC financing would help CGL build the Crompton Greaves brand in the international market in line with its strategy of increased focus on export. IFC will also have a strong role in helping CGL attain global standards in environmental and social issues and corporate governance.