Greaves Cotton Ltd
Greaves Cotton Ltd (GREAVESCOT)

Greaves Cotton Ltd (GREAVESCOT)

₹171.653.87%

Key Stats

₹164.4
Day's Price Range
₹177.7
₹126.2
52-Week Price Range
₹258.9
1 Month Return7.44 %
3 Month Return16.45 %
1 Year Return15.07 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 204
-108.01
EPS
Rank 214
₹-1.53
BVPS
Rank 178
₹33.85
Dividend Yield
Rank 127
0.16%
ROE
Rank 301
0.94%
Price To Book Ratio
4.88
Debt To Asset
Rank 209
0.39

Company Information

Greaves Cotton Ltd is a large diversified engineering company that has business interest across Automotive Engine Genset Farm Aftermarket Spares Aftermarket Service Segment and International Business. The company has six manufacturing units which produce world class products backed by comprehensive spares and service through its 3500 plus service outlets across India. The companys manufacturing facilities are supported by comprehensive RD and testing capabilities. The company has leveraged its panIndia network of over 3500 dealers to grow its presence in aftermarket solutions and services.The company was incorporated in the year 1922. The company promoted the first ever IndoRussian joint venture in the private sector namely Rajasthan Polymers and Resins to manufacture 20000 TPA of ABS/HIPS resins during the year1991. During the year 199293 Greaves Semiconductor a subsidiary was amalgamated with the company. Also they acquired two units of Enfield India to enhance the companys core strengths in engine manufacture and marketing.During the year 199596 the company signed a joint venture agreement with SAME SpA Italy for the manufacture of Diesel Engines. During the year 199798 the company divested their Greaves Garuda 3wheeler Auto plant at Baramati in favour of a joint venture company namely Piaggio Greaves Vehicles Ltd formed in collaboration with Piaggio Veicoli Europei SpA of Italy.During the year 199899 the company began the commercial production of diesel engines in SAME Greaves Ltd at Ranipet a joint venture with SAME Deutz Fahr SpA. Also they commenced commercial production in their tractor unit. This is marketed in the name of SAME Greaves pronounced SAMAY. The Greaves Semiconductors Unit at Patancheru in Andhra Pradesh was divested in favour of Teamasia Greaves Semiconductors Ltd with effect from January 1 1999.Rajasthan Polymers Resins Ltd merged with the company with effect from May 5 1999. In March 2000 the company transferred the tractor business in favour of a joint venture company under the name SAME Greaves Tractors Ltd formed in collaboration SAME Deutz Fahr SpA of Italy and SAME Deutz Fahr Holdings and Finance BV Netherland. During the year 200001 they exited from the business venture with Piaggio Greaves Vehicles Ltd.During the year 200102 the company exited from the joint venture company namely SAME Greaves Ltd and SAME Greaves Tractors Ltd. During the year 200203 the company acquired the business of manufacture of fluid couplings and cluster gears from Pembril Engineering Pvt Ltd and Pembril Industrial Engineering Company Pvt Ltd respectively. The name of the company was changed form Greaves Ltd to Greaves Cotton Ltd.During the year 200304 the company transferred most of their investments to their wholly owned subsidiary Greaves Leasing Finance Ltd. They merged all their investment companies namely Rajpath Investment Ltd and Carnation Investment Ltd with their wholly owned subsidiary Greaves Leasing Finance Ltd. They also sold their loss making RPRL unit and liquidated their overseas subsidiary Sidvim AG during the year.The Oilfield Drilling Business of the company which includes Nasik plant was divested as a going concern to Drilbits International Pvt Ltd with effect from June 30 2005. During the year 200506 the company divested their 25.5 stake in the Equity of Greaves Morganite Crucible Ltd for a consideration of Rs 10.71 crore. Also they exited from the distribution business relating to GMCL products for a consideration of Rs 5.20 crore.During the year 200607 the company set up an additional manufacturing facility for concrete mixers at their existing location in Gummidipoondi Tamilnadu. In March 2007 they acquired Bukh Farymann Diesel GmbH renamed as Greaves Farymann Diesel GmbH for Euro 4.24 million. This company is engaged in the manufacture and marketing of single cylinder diesel engines and parts.During the year 200708 the company set up Greaves Auto Ltd to act as a Special Purpose Vehicle for new business that the company may undertake in future. They set up new facilities for manufacture of twin cylinder engines/ power train at Aurangabad in Maharashtra. They also set up a manufacturing facility at Gummidipoondi Tamilnadu for manufacture of road compaction equipments.The company set up a manufacturing facility for manufacture of G series multi cylinder diesel engines at Chinchwad in Pune. They also set up a stateoftheart Technology centre at Chinchwad Pune for design development and testing of large multi cylinder diesel engines. In September 2008 the company inaugurated a new manufacturing facility for agro equipment at Gummidipoondi in Tamilnadu. In October 2008 they entered into a long term Agreement with Tata Motors Limited for supply of newly developed light diesel engines for application in their small commercial vehicles.The Industrial Engine Business was set up in the year 2009 with a view to use the strong domain knowledge to customize engines for expanding into new and promising sectors that provide a visible opportunity horizon.During the year ended 31 March 2014 Greaves Cotton initiated a cost optimisation project called Propel to launch specific initiatives like value engineering supply chain vendor development which enabled the company to report reduction in the material cost. During the year under review the company entered into an agreement to supply diesel engines to TVS Motors for their diesel 3wheeler vehicles.In Auxiliary Power business the company launched three new offerings in the sub 20 KVA. During the year under review the company undertook measures to make deeper inroads into the institutional segment and ventured back into the Railways business.In Farm Equipment business the companys entry into the electrical pumpset segment was well received. The company remained focussed on expanding the product range of Light Agri Equipment to reduce dependency on imports.In Construction Equipment business the company successfully launched water cooled engines for Soil Compactors which offers a distinct fuel consumption advantage. Continuing with the strategy to introduce valueadded products the company signed a MoU with Nikko a leading Japanese Hot Mix Asphalt plant manufacturer for trading. During the year under review the company introduced new products in the concreting business. The financial year 201314 saw the company commercially launch the full range of SValve pumps and also subsequently launch the first indigenously manufactured 37 meter Z fold Boom Pump.The company continued to expand its global footprint and set up an office in Tanzania and took focussed strategic and marketing initiatives to further build the market in UAE East Africa and South East Asia. The company also expanded the product range and introduced new products in different regions ensuring that the right products were available customised to the local requirements due to which favourable traction was visible in Sri Lanka Bangladesh Indonesia Philippines United Arab Emirates Saudi Arabia Tanzania Kenya and Malaysia. The company also appointed new distributors for products and OEMs for engines in various markets identified as strategic to expand the presence.During the year under review Greaves Cottons wholly owned subsidiary Greaves Leasing Finance Limited GLFL acquired 90 shareholding in Greaves Cotton Middle East FZC GCME from Greaves Cotton Netherlands B.V. at book value. Accordingly GCME became a subsidiary of GLFL. In May 2013 the Paidup Share Capital of GLFL was reclassified by conversion of 15082689 6 Cumulative Redeemable Preference Shares issued to its parent company to 15082689 Equity Shares of Rs. 10 each. In March 2014 GLFL issued 3912835 Equity Shares as Bonus Shares out of its Capital Reserves in the ratio of 1 Equity Share for every 4.311 Equity Shares held to its parent company.Greaves Farymann Diesel GmbH Germany GFD was a wholly owned subsidiary company of Greaves Cotton Netherlands B.V. In order to curtail further losses during the year under consideration the entire shareholding in GFD was disposed off under a Management Buyout arrangement. Accordingly GFD ceased to be a subsidiary with effect from 10 October 2013.During the year under review the name of Ascot International FZC was changed to Greaves Cotton Middle East FZC GCME in order to help build the Greaves brand globally and to attract new business prospects for the Greaves Cotton Group. GCME is stepdown subsidiary of Greaves Cotton through GLFL.Greaves Cotton Netherlands B.V. The Netherlands GCN a wholly owned subsidiary of Greaves Cotton was set up as a Special Purpose Vehicle SPV for holding the companys investments in stepdown subsidiaries. During the financial year 201314 its entire shareholding in Greaves Farymann Diesel GmbH was divested while its investment in Greaves Cotton Middle East FZC was sold to GLFL at book value. Consequently GCN became a shell company and was eventually liquidated effective 19 December 2013.During the financial year ended 31 March 2015 Greaves Cotton strategically exited noncore and loss making manufacturing operations in the Construction Equipment business. The company strengthened its aftermarket spares and service network and witnessed improved demand in the overseas market.In Auxiliary Power business the company expanded its manufacturing capacity and inaugurated a new manufacturing plant in Pune to capture the CPCB II opportunity. These initiatives enabled the early launch of several upgraded compliant products and capture demand for quality indigenously manufactured goods. As a valueadded feature the company also introduced CPCB II Gensets with controllers having remote interfacing and monitoring capability. Further the environment platform change was used to its advantage as the company introduced almost all engines on mechanical platform. This was a major paradigm shift for the industry which was looking for electronic engines as a solution. The company concentrated on revitalizing and deepening its dealer network and enhance reach and touch points with end customers. Thrust was also placed on strengthening the institutional sales channels. The company improved its market presence significantly in the SAARC region followed by SEA markets.In spare parts business the company continued to reinforce its distribution network for deeper penetration across the country. Ongoing ground level initiatives which include skill upgradation technology update IT enabled aftermarket support system like IVR for breakdown call monitoring online warranty system customer support portal and quality module enabled the company to forge a stronger bond with customers and dealers and improved operational efficiency. Moreover the company continued to work towards protecting the safety and interest of the customers by keeping a vigil on dealers and manufacturers of counterfeit spares and taking recourse to legal actions where necessary.With regard to the International Business Greaves Company continued with its strategic approach of establishing a diversified geographic presence. The company consolidated its position in SAARC by retaining its position as a supplier of quality products in Farm Equipment and Auxiliary Power businesses. To build a sustainable market for the light diesel engines the company strengthened its relationship with Original Equipment Manufacturers OEMs in Europe Middle East and South East Asia.In spite of manufacturing in the Construction Equipment business being phased off the company focused on entering into marketing alliances with Indian majors to exclusively represent their product in the overseas market. This decision was wellreceived by the end customers leading to no gap in the market and enabling the company to extract a profitable business. Engineering items in the trading business were reviewed and new products were introduced to gain a deeper penetration into the market. Thrust was also placed on strengthening the distribution and aftermarket network to service international customers better and expand presence.Greaves Cottons wholly owned subsidiary Greaves Auto Limited GAL being a dormant company was struck off from the register of the Registrar of Companies with effect from 10 April 2014 under the Fast Track Scheme of the Ministry of Corporate Affairs. Being in excess of its requirements the Paidup Share Capital of Greaves Leasing Finance Limited GLFL a wholly owned subsidiary of Greaves Cotton was reduced from Rs. 207810690 comprising of 20781069 Equity Shares of Rs. 10 each to Rs. 2500000 comprising of 250000 Equity Shares of Rs. 10 each. The excess capital i.e. Rs. 205310690 comprising of 20531069 Equity Shares of Rs. 10 each was paid off / returned to the holder of the said Equity Shares. GLFL is a nonbanking finance company.Greaves Cottons technological thrust helped it maintain market share even in a challenging environment across all its key segments namely Diesel / Petrol Engines Farm Equipment and Gensets during the year ended 31 March 2016. Underpinning the companys technological prowess were the new product introductions in the Automotive Engines and Farm Equipment businesses during the year. The Farm Equipment business launched a new SAMPURNA SWADESHI programme aligned to the Make in India campaign. The indigenous development of these products was supported by the companys Technology Centre for Farm Equipment business in Chennai. Also to further streamline operations and better utilise resources the company shifted its manufacturing operations from Gummidipoondi to Ranipet.In Automotive Engines business the company showcased a 3cylinder BSIV compliant engine at the Society of Automotive Engineers China Congress Exhibition at Shanghai China and for the first time in India at the Auto Expo 2016.In Auxiliary Power business the company launched a 5year extended warranty programme for its new Genset product range. Further to improve its reach the company strengthened its dealer network in key markets.During the year under review the companys spare parts business focussed its energies on channel enhancement and expanding territory coverage in identified regions to strengthen last mile connectivity.In Automotive Engines business Greaves Cotton continued to focus on delivering technologically superior product offerings and building a strong Aftermarket network during the year ended 31 March 2017. The companys Auxiliary Power Business continued to develop new products improve its aesthetic appeal and importantly look for ways to improve the reliability of the products through constant RD efforts. The company adopted a focused approach to engineer growth by anticipating demand across identified sectors and targeting identified geographies with enhanced marketing efforts. These efforts enabled the Auxiliary Power Business to improve its market share and record robust growth in volumes albeit on a relatively small base. The momentum of growth for the Auxiliary Power Business was supported by constant efforts to strengthen the service network and proactively engage with customers.In Farm Equipment business Greaves Cotton launched an indigenous Greaves Weeder with 1520 engine and planned for seeding a new Power Tiller in the market place.In Industrial Engine business the company continued to expand its product portfolio and deepen OEM relationships in FY 201617.Taking a closer look at the various opportunities available and as an extension to its Aftermarket business the company embarked into the multibrand spare parts business. In line with the companys strategic thrust the International Business worked on strengthening and expanding its distribution network and launching new products.In FY 201617 the company launched more Auxiliary power productsCPCBII PhaseII Diesel Generator and New D series engine driven 400 kVA 500 kVA DG sets and also extended the portfolio of traded products in some of the new markets.Greaves Cottons wholly owned step down subsidiary Greaves Cotton Middle East FZC which was registered at Sharjah Airport International Free Zone UAE was liquidated with effect from 20 April 2017 due to continuous losses.FY 201718 marked the beginning of a transformation at Greaves Cotton Ltd. The company took several new initiatives to drive future growth and maintained growth momentum despite transient effects of macroeconomic disruptions. The implementation of GST and lag effect of demonetisation capped the volume growth across business segments in the firsthalf which in turn affected the top line growth.In FY 201718 the company demonstrated its futurereadiness by showcasing powertrain solutions in the alternate fuel categories new electric vehicle with possibility of charging infrastructure facility at Greaves Care and the ability to operate in the overall ecosystem at the Auto Expo 2018 the biggest show for Automotive industry in India. In parallel the company continued to launch new products across other business segments Farm Genset Aftermarket and engage with its strategic alliance partners.The company entered into a technological alliance with Pinnacle Engines of the U.S. and with Bangalorebased Altigreen Propulsion Labs. These partnerships will enable the company to cater to the fastgrowing alternate fuel segments and also capture opportunities in the Aftermarket with retrofit solutions. Enhancing the aftermarket business Greaves tied up with AMSOIL for premium synthetic Oil category and Fuchs for mineral oil category catering to a wide range of consumer segments. Widening the Multibrand portfolio the company introduced multiple new products including the 3W and 2W battery and tyres. The company also started selling products in the light construction equipment segment through tieups with leading global organisations Mikasa from Japan and Roxar from Italy.As a new futureready business initiative the company introduced Greaves Care Indias unique chain of multibrand service outlets with proposition of superior lifetime value to the customer.In line with the Governments focus on reducing emissions and making lastmile automotive engine much safer the company took several steps in FY 201718 towards becoming a fuel agnostic powertrain solutions and services company. In the automotive engine segment with an objective of derisking the dependency on single cylinder diesel product the company announced wide product portfolio with multi cylinder and multi fuel options in tune with the upcoming BSVI norms.In FY 201718 Greaves Cotton continued to invest in developing technological capacities for making more indigenous products in the farm equipment space. It launched The Bahubali Indias first indigenously designed and manufactured 14HP high power tiller. In FY 201718 it also unveiled eHD Electric Heavy Duty series of electric pumps keeping in mind changing consumer preferences.Greaves Cotton offers wide range of spare parts for all the 3 business groups Automotive Engine Farm and Genset. In FY 201718 Greaves Cotton added a new range of product categories and adopted a focussed approach to promoting multibrand business and strengthening its network. In FY 201718 the company in association with competing authorities conducted raids at multiple locations against the spurious parts thereby protecting consumers from these unauthentic parts which can cause higher damage to the engine over a period of time.During the FY2019 the Company acquired 67.34 equity shareholding in Ampere Vehicles Private Limited Ampere and pursuant to the same Ampere became the subsidiary of the Company. As at 31st March 2019 the Company has three subsidiaries under its roof namelyi. Greaves Leasing Finance Limitedii. Dee Greaves Limitediii. Ampere Vehicles Private Limited. The Companys Aurangabad Plant bagged the First Prize at the Industrial Safety Health Awards 2019 by the Government of Maharashtra.During the FY2020 the Company acquired the remaining entire stake of Ampere Vehicles Private Limited Ampere and thus Ampere became the wholly owned subsidiary of the Company effective from 5th December 2019. As at 31st March 2020 the Company has three subsidiaries under its roof namelyi. Greaves Leasing Finance Limitedii. Dee Greaves Limitediii. Ampere Vehicles Private Limited. The Board at their Meeting held on 2nd May 2019 approved a proposal to Buy back up to 13714286 Equity Shares of the Company being 5.62 of the total paidup equity share capital at a tender price of Rs 175 per Equity Share for an aggregate amount not exceeding Rs 240 Crore. Further The Buyback Committee at its meeting held on 23rd May 2019 approved that the number of Equity Shares to be bought back shall be up to 13000000 Equity Shares representing 5.32 of the total number of Equity Shares in the paidup share capital of the Company as at 31st March 2019 for an aggregate consideration amount not exceeding Rs 227.50 CroreDuring the FY2020 the Company has completed the Buyback of 13000000 Equity Shares as approved by the Board of Directors on 2nd May 2019. This has resulted in total cash outflow of Rs 227.50 Crore.The Companys operations and financial results for the quarter ended 30 June 2020 have been adversely impacted by the lockdown imposed to contain the spread of COVID19. The operations gradually resumed in line with the directives of the Government of Maharashtra.Ampere Vehicles Private limited the Companys 100 subsidiary entered into definitive agreements on 6th July 2020 to acquire shares of Bestway Agencies Private limited on a fully diluted basis through secondary purchase. The first phase of acquisition i.e. 74 of the equity shareholding in Bestway Agencies Private limited was completed on 14th July 2020.
OrganisationGreaves Cotton Ltd
HeadquartersMumbai
IndustryCapital Goods-Non Electrical Equipment