Crompton Greaves has said in a filing with the stock exchanges that it has entered into an agreement to acquire the business unit of Karma Industries at Baddi, Himachal Pradesh that is involved in manufacturing Compact Fluorescent Lamps (CFL).

Crompton Greaves is believed to have agreed to pay about Rs. 145 million for the CFL unit of the company. Following the acquisition, Crompton Greaves will be able to double its capacity in the CFL lighting segment and also help the company expand its presence in the fast growing Indian market. Crompton Greaves wrote in the letter dated Friday, 11 January 2013 that it has entered into a definitive agreement with the Baddi based firm for its CFL business.

Chief Executive Officer and Managing Director Laurent Demortier said, "This acquisition reinforced our presence in the rapidly growing Indian consumer market. The state-of-the-art facility can manufacture 2 million lamps per month, not only providing us with immediate capacities but also allowing us to offer a complete range of CFL lamps."

The shares of the company have hit high of Rs 116.85 and low of Rs 115.30 so far during the day. Crompton Greaves is a manufacturer of electrical products and services and offers products including transformer, switchgear, fans, light sources, pumps, electric motors, harmonic filters, transient suppressors, current limiting reactors, diesel electric locomotives and railway signaling as well as power systems and industrial systems.