Stoves to lifestyle: Butterfly’s transformation under Crompton

CHENNAI: From pressure cookers and stoves to mixers and grinders, Butterfly has been part of Indian kitchens for over four decades. Now, under Crompton Greaves Consumer Electricals, the Chennai-based brand is being repositioned as a complete kitchen solutions player with a sharper focus on innovation and younger consumers.

The road here wasn’t smooth. Butterfly Gandhimathi Appliances came up for acquisition thrice, with Crompton itself a contender twice. It was only in 2022 that the deal materialised, giving the Mumbai-based consumer durables major its entry into the Rs 35,000 crore kitchen category.

“The idea was for Crompton to look at segments that will give headroom for growth… Kitchen as a category has a much more personal connection. That made the acquisition exciting,” said Kaleeswaran Arunachalam, group CFO and head of strategy, Crompton, and board member, Butterfly.

A new strategy began with a pan-India study and over 150 one-on-one consumer interviews. Findings showed Butterfly enjoyed trust, but had space to build emotional connect.

“Consumers don’t just want a product that works, they want something that feels modern and fits their lifestyle. That’s the gap we’re addressing,” said Swetha Sagar, chief business officer, Butterfly.

The brand is moving away from rigid consumer segmentation, as she added, “earlier, age was directly related to stage of life. Today, that’s no longer true. We stopped boxing consumers into rigid frameworks.”

To underline its new positioning, Butterfly unveiled a fresh logo and tagline celebrating change. Swetha emphasised that Butterfly’s focus is on solving real consumer pain points. “The brand needs to resonate with younger mindsets, be it millennials or Gen Z. Whether it’s fan-proof gas stoves, sturdier burners, crack-resistant glass tops or compact appliances, the emphasis is on industry-first ideas.”

For Crompton, already strong in the north and west, Butterfly’s southern roots created a pan-India opportunity. “Crompton has the scale to ‘Cromptonize’ products for mass reach, while Butterfly retains intimacy with consumers as an ‘experience-first’ brand. The combination is powerful as we are the number two player in kitchen,” said Kaleeswaran.

Butterfly is also moving into premiumisation with value. The Crompton group invests over Rs 100 crore annually in R&D across its Mumbai and Chennai centres. “Butterfly gives us a platform to bring those capabilities into kitchen appliances,” Kaleeswaran said. Board member KE Ranganathan added: “We are signalling that Butterfly is not just about incremental sales but a transformation story in motion.”

Swetha noted, “We’re resourcing our marketing teams better, focusing on modern trade, regional and national chains, and offering richer e-commerce experiences.”

Kaleeswaran highlighted design, IoT and new materials as three innovation focus areas to boost sustainability and performance. Meanwhile, Butterfly will strengthen its core categories: mixers, grinders, gas stoves, table-top grinders and pressure cookers.

The growth strategy blends organic expansion with selective opportunities. “You never say no to an acquisition. But the organic potential here is huge. The synergies and product opportunities are massive,” Kaleeswaran said.

Currently, 80 per cent of Butterfly’s output is in-house. To meet rising demand, Crompton has announced a new greenfield unit with a capex of Rs 350 crore in phase one and Rs 100 to Rs 150 crore in phase two.