CG Igarashi Motors started with production of DC niche permanent magnet micromotors that find applications in numerous industries including automobile, power tools and domestic appliances. Micromotors alone proved insufficient for profitable operations and the company changed focus to rotor assembly that opened a new market of motor manufacturers. Presently, rotor sales account for 93% of the company`s revenue. CGI has about 125 products in its portfolio and sells them abroad. Europe accounts for 60% of revenue, USA 30% and Australia the remaining 10%. Meritor is currently the largest customer, accounting for 70% of revenue. Automobile giants like GM, Honda, Renault and Mitsubishi are among its customers.
Two major dimensions of the company`s competitive strategy are low cost supply and diversification of customer base. Cost competitiveness is sought through intelligent engineering productivity and low cost automation. As part of diversification, the company works with its customers to find new products that could be economically outsourced. CGI is a joint venture between Crompton Greaves and Igarishi Electric Works of Japan. For the latest year ended Mar. 31, 2006, the company`s sales rose 69% to Rs 1,753 million from the previous year. However, profits after tax fell 64% to Rs 11.23 million compared to Rs 31.62 million for 2005. Increases in interest and depreciation led to fall in profits. For the latest quarter ended Sep. 2006, sales rose 43.45% to Rs 643.93 million but PAT fell 47.31% to Rs 25.57 million.
