Crompton Greaves (NSE: CROMPTON) bags solar pump order under PM-KUSUM scheme

Crompton Greaves Consumer Electricals Limited (NSE: CROMPTON) announced on June 13, 2025, that it has received a Letter of Award from the Maharashtra Energy Development Agency for a ₹101 crore solar water pumping project. The large-scale contract involves the design, supply, and installation of 4,500 standalone solar photovoltaic water pumps under Component-B of the Government of India’s PM-KUSUM initiative. Shares of Crompton were trading slightly lower at ₹342.10 in early morning trade on the National Stock Exchange, reflecting a muted market response following the news.

The deal represents the Indian electrical appliances manufacturer’s largest-ever solar pump order and significantly enhances its visibility in the fast-growing clean irrigation space. Crompton Greaves Consumer Electricals Limited will also provide long-term service through a comprehensive five-year maintenance contract, a move that positions it as a full-lifecycle service provider in rural energy access.

How does the PM-KUSUM scheme support India’s solar irrigation expansion?

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) is a flagship central government scheme that aims to install over 30 lakh standalone solar pumps to improve irrigation coverage, reduce diesel dependence, and enhance farmers’ incomes. Component-B of the scheme specifically targets off-grid regions where grid connectivity is unreliable or absent, making decentralized solar solutions vital.

The current order from the Maharashtra Energy Development Agency marks a high-visibility implementation milestone for the scheme in western India. Crompton’s installation of 4,500 solar water pumping systems in the state aligns with both national energy transition goals and local irrigation needs. The deal covers procurement, installation, testing, commissioning, and service, ensuring a complete turnkey delivery.

Institutional analysts interpret this project win as a validation of Crompton’s growing capabilities in decentralized clean energy infrastructure. Given the volume and technical complexity involved, such orders require not only product efficiency but also last-mile logistics, local workforce training, and district-level service readiness.

What are the key details of Crompton’s ₹101 crore MEDA solar pump project?

Crompton Greaves Consumer Electricals Limited will deploy DC submersible solar water pumping systems customized for off-grid usage. These pumps are built for high durability and consistent performance in rural environments with intermittent access to water and power. The project is expected to be rolled out in multiple districts across Maharashtra, supported by Crompton’s trained field technicians, dealer network, and after-sales service operations.

The ₹101 crore contract, exclusive of GST, also includes a five-year comprehensive maintenance contract, adding recurring revenue to the company’s service portfolio. The total traded value on June 13 stood at ₹5.51 crore, and despite the short-term neutral market sentiment, investors and institutions are likely to see longer-term value in Crompton’s strategic diversification into solar assets.

How is Crompton expanding its solar pump operations across Indian states?

The Indian consumer electricals and appliance maker has been actively participating in solar irrigation tenders across Haryana, Madhya Pradesh, Rajasthan, and Maharashtra. While execution is already underway in three of these states, the company is now preparing to expand into Madhya Pradesh with new projects expected to be announced soon.

These efforts are being conducted in coordination with state-level nodal agencies including MEDA, HAREDA, MPUVNL, and RHDS following the initial central rollout overseen by SECI and the Ministry of New and Renewable Energy (MNRE). This distributed model allows Crompton to diversify execution risk while maintaining a consistent pipeline of orders from government programs.

With India’s solar pump market projected to grow at over 14% CAGR over the next five years, analysts expect well-positioned firms like Crompton to benefit from recurring state-sponsored demand. The order also helps de-risk the company’s core consumer appliance revenue streams, which face intense seasonal and pricing pressure.

What is investor sentiment toward Crompton’s clean energy diversification?

Institutional sentiment toward Crompton Greaves Consumer Electricals Limited has been stable despite broader market volatility. The company has a current adjusted P/E of 40.24 and a total market capitalization of ₹22,026 crore as per June 13 data. The stock trades within a 52-week band of ₹301 (April 7, 2025) to ₹484 (September 2, 2024), and the current volume-weighted average price (VWAP) is ₹339.94.

Market experts have viewed Crompton’s gradual diversification into solar-powered solutions as a strategic move that could shield it from cyclicality in the residential appliances segment. The PM-KUSUM-aligned projects are seen not only as high-volume revenue drivers but also as long-term brand equity builders in rural India. Analysts have suggested that the inclusion of long-term service contracts could improve the quality of Crompton’s order book and reduce earnings volatility.

Delivery volumes have remained strong, with 67.36% of traded shares marked for delivery on June 13, indicating healthy investor retention and low speculative churn.

Can solar projects become a meaningful revenue driver for Crompton?

With solar irrigation becoming a national priority, Crompton Greaves Consumer Electricals Limited is poised to increase its clean-tech revenue contribution in the coming fiscal years. The ₹101 crore MEDA project alone is expected to enhance its FY26 clean energy vertical revenues substantially. Market observers will closely track Crompton’s execution pace, service quality benchmarks, and follow-on orders to assess its capability as a major player in decentralized solar infrastructure.

The consumer electricals company has previously been recognized for energy efficiency leadership, winning three National Energy Consumer Awards from the Bureau of Energy Efficiency under the Ministry of Power. It has also earned accolades from WPP-Kantar, Dun & Bradstreet, and Deloitte for its management quality, product innovation, and brand value.

Going forward, the success of solar pump projects in Maharashtra and other states could serve as a strong case study for Crompton’s brand expansion in agri-tech and government partnership channels. While this segment is unlikely to overtake its fan and appliance revenues in the near term, it could form a meaningful adjunct that boosts brand relevance and sustainability credentials.

What is the long-term outlook for Crompton’s solar pump business in India?

With strong institutional reputation, solid service infrastructure, and engineering capabilities suited for off-grid applications, Crompton Greaves Consumer Electricals Limited is well-positioned to scale its clean energy vertical. The convergence of energy transition policies, agri-tech modernization, and decentralized power infrastructure opens up significant market potential for solar pump solutions in India.

Analysts expect additional tenders under the PM-KUSUM scheme to be floated by Uttar Pradesh, Gujarat, and Chhattisgarh in the second half of FY26. Crompton’s performance in the MEDA contract could be a critical factor in winning future bids. Investors will also monitor the company’s ability to maintain margin profiles while scaling execution across geographies.

For now, the ₹101 crore MEDA order is not only a revenue opportunity but a platform for Crompton to build long-term credibility in the solar-powered irrigation ecosystem—at a time when India’s rural electrification efforts are entering a crucial implementation phase.