Clause 36

Our Ref : COSEC/122/2014 16th October, 2014 BY EMAIL & COURIER Bank of New YorkMumbai Representative Office3 North Avenue,Maker MaxityPremises no. 35 & 36, (3rd Floor )Bandra-Kurla Complex Bandra (East)Mumbai - 400 051 Dear Sirs, CLAUSE 36 Pursuant to Clause 36 of the Listing Agreement, we wish to inform you of theoutcomes from the Meeting of Board of Directors of the Company ("CG") heldtoday : 1. Scheme of demerger of Consumer BU : The Scheme of demerger of the Consumer Products Business Unit of the Companyinto CG's wholly owned subsidiary Crompton Consumer Products Limited wasapproved by the Board. The Scheme will come into effect from the Appointed Date1st April 2015, subject to receipt of all Regulatory approvals. Details on keyhighlights of the Scheme are enclosed as Annexure A to this letter. 2. Enhancement of FII/FPI limits The Board approved an increase in the Investment limit for ForeignInstitutional Investors ("FIIs") and Foreign Portfolio Investors ("FPIs") upto100% of the paid-up equity share capital of the Company pursuant to theprovisions of Foreign Exchange Management Act, 1999, and the Foreign ExchangeManagement (Transfer or Issue of Security by a Person Resident Outside India)Regulations, 2000. The FII shareholding in CG is approx 15.93% of paid-up capital as on 30thSeptember, 2014; the enabling approval will create space for additional FII/FPIinvestment, enhancing price discovery and liquidity of the Company's stock. The Company would be seeking consent of the shareholders for the aforesaidmatter by Postal Ballot in terms of the applicable provisions of the CompaniesAct and Rules made thereunder. 3. Sale of land As part of its continuous asset optimisation initiatives, the Board ofDirectors of the Company has approved entering into a definitive agreement forsale of a portion of its land parcel at Kanjurmarg, admeasuring approx 8 acresto M/s Evie Real Estate Private Limited for an aggregate sum of Rs.302.26crores. 4. VRS - Stampings Division As a continuous improvement measure, critical Stamping operations of the KanjurMarg, Mumbai Stampings Division are being transferred to our state-of-the-artStampings facility at Ahmednagar. The transition will positively impact theproduction of motors and generators for the Company as the Ahmednagar factoryis fully equipped to handle enhanced operations. The transition will beoperationally effective from 31st October, 2014. In this connection, theCompany has implemented a voluntary retirement scheme for all unionizedemployees of Stampings Division based at Kanjur Marg, Mumbai. Please take the above information on record pursuant to Clause 36 of theListing Agreement with the Stock Exchanges. Yours faithfullyfor Crompton Greaves Limited MINAL BHOSALECompany Secretary