Financial Daily from THE HINDU group of publications
Saturday, Dec 11, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Outlook
Marketing - New Products & Services


Greaves Cotton hopes to ride on 3-wheeler makers' orders — Rolls out millionth light diesel engine

R. Balaji


(From left): Mr Karan Thapar, Chairman, Greaves Cotton Ltd; Mr Praveen Sachdev, Managing Director & CEO; and Mr B.P. Jetty, Vice-President (Manufacturing), Business Group III, at the rollout of the millionth light diesel engine at the company's Ranipet unit. - R. Balaji

Ranipet , Dec. 10

GREAVES Cotton Ltd, part of the B.M. Thapar group, plans to expand its light diesel engine production facilities through an additional investmentof about Rs 100 crore, according to Mr Karan Thapar, its Chairman.

Addressing reporters at the rollout of the millionth light diesel engine at its production unit at Ranipet, about 110 km from Chennai on the Chennai-Bangalore route, he said that as an independent manufacturer of light diesel engine, the company caters to a wide range of industries such as automotive industry, and agriculture, construction and power generating equipment.

The company expects engine supplies to automotive segment - three-wheeler manufacturers - to be a major growth area. This will be the prime driver of growth for the group that has plans to grow to Rs 1,000 crore in the coming years.

Greaves Cotton's Managing Director & CEO, Mr Praveen Sachdev, said that the demand for light diesel engines had caught on in the automotive segment. The company has emerged as a major supplier to three-wheeler manufacturers such as Piaggio, Mahindra & Mahindra, Atul Auto and Suraj Auto. Greaves's light diesel engines command a 60 per cent market share in this segment.

The company hopes to expand production to about 2,50,000 engines a year from 1,50,000 units. The demand for light diesel engines is on the rise. For instance, it took the company nine years to make its first 1,00,000 engines. The last 1,00,000 engines were made in nine months to touch one million.

Of the six manufacturing plants that Greaves Cotton runs, three are in Tamil Nadu at Ranipet, Gummidipoondi and Thoraipakkam. The light diesel engines are manufactured at Ranipet and its other unit at Aurangabad. Most of the additional investments are to be made at Tamil Nadu unit, which is its largest, he said.

Another potential growth area is supplying engines for quadricycles, four-wheeled carriers that would occupy a segment between three-wheelers and light commercial vehicles. But as an independent engine manufacturer, Greaves Cotton's plans are closely linked to that of original equipment manufacturers. The company hopes to start manufacturing the engines in 2006, he said.

The company is also looking at exporting diesel engines to the US and Europe, where they are needed to power construction equipment and gardening equipment.

More Stories on : Outlook | New Products & Services | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Andrx transfers EMR of cardiovascular drug to Ranbaxy's US arm


Welspun-Gujarat bags Rs 500-cr National Iranian Gas order
Change in MFL book closure
GSK Consumer okays buyback at Rs 370
Kerala: Energy conservation awards announced
`Best employers' beat peers on financials: Hewitt study
Corporates gear up for bond market
IFC may fund Tata Steel's NatSteel buy
Bharat Forge buys German firm in all-cash deal
Banswara Textile amalgamation
Schwing Stetter set to open second plant near Chennai
Honda Motor mulls synergising India, Thailand operations
Greaves Cotton hopes to ride on 3-wheeler makers' orders — Rolls out millionth light diesel engine
BPCL sees 6 pc growth in petro product sales
TCS tops Hewitt's best employer list



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line