As stated by BS, Crompton Greaves is planning to sell out or completely shut down its Canadian power transformer factory to cut losses in its foreign business.
The factory in Canada contributes about 3% to the company’s total sales but made a $10 million loss in 2013 and restructured its Belgian plant.
The Canadian facility anticipates continuous losses in the next few quartersis and is currently running at low utilisations as well as experiencing manufacturing design issues.
The Pauwels group from Belgium acquired the Canadian factory in 1994. However, since it has been acquired by Crompton Greaves in 2005, it has underperformed in the international business and this is now affecting the company's financial results.
Crompton Greaves earns as much as 55-60 % of its revenue from its Indian holding company, and the rest from the European, American and Indonesian subsidiaries.
Source: Deal Curry