Greaves Cotton Ltd. has found success with new levers of growth. Ranked 13th in Fortune India’s Mid-sized Marvel section of ‘The Next 500’ list, the company continues to contribute strongly to the affordable and last-mile mobility ecosystem. On one hand the company has tightened its grip through a refreshed positioning in the engine and engine products business with its BSVI range while on the other hand, the Original Equipment Manufacturer (OEM) is counting on its diversification into new businesses like emobility and cleantech solutions. Helping it withstand the headwinds, the new businesses include new engine applications, MB Spares and new mobility. Notably, it has helped the company add Rs.400 crore to the overall revenue since FY2017 (including growth delta). In effect, from contributing six per cent to the overall revenue in FY2017, new businesses have grown to contribute 21 per cent to the overall revenue in FY2020, at a near 4x growth rate.
Revenue for FY2020 from new mobility segments as a subset of the new businesses is pegged at Rs.145 crore compared to Rs.48 crore in FY2018. According to Nagesh Basavanhalli, Managing Director and Chief Executive Officer, Greaves Cotton Ltd., the company continues to accelerate its new business initiatives and scout for new levers of growth. Averred Basavanhalli, “We are offering uninterrupted journeys in the affordable mobility space where we play in the heart of the market in the price band of Rs.35,000 to Rs.80,000.” “We are optimistic of growth in the electric two-wheeler and e-rickshaw segment coupled with allied segments where we also see an uptick,” he said. The company in 2015-16 had decided to diversify the business to cleantech sectors and in the non-automotive domain. In the non-emobility segment, the company provides affordable mobility solutions, manufacturing four lakh plus engines annually. The company had crossed five million engines at the end of FY2019.
Shifting emobility levers
You can read up to 3 premium stories before you subscribe to Magzter GOLD
Log in, if you are already a subscriber
Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines
READ THE ENTIRE ISSUE