Butterfly acquisition a boost for Crompton Greaves Consumer's kitchen biz

The Rs 2,076 crore buy to earnings accretive from second year of acquisition

The Street is positive about the earnings accretive acquisition of South India-based kitchen appliances company Butterfly Gandhimathi Appliances (Butterfly) by home appliances major Crompton Greaves Consumer Electricals (Crompton). The Crompton management indicated that the Rs 2,076 crore acquisition will start adding to the net profit of the combined entity from the second year of the acquisition.

Butterfly is the largest player in stoves and wet grinders and among the top three in mixer grinders and pressure cookers in South India. The deal is expected to be complementary as small appliances/kitchen products form 10 per cent of Crompton’s portfolio and this