The Hindu Business Line : Greaves Cotton sets up new light diesel engine facility

Pune, Aug. 8 Greaves Cotton has set up a new facility to manufacture light diesel engines at Aurangabad. The modern plant that was inaugurated by the Chairman, Mr Karan Thapar, on Tuesday has been built with an investment of over Rs 60 crore.

It will produce twin-cylinder engines for applications like four-wheeled low cost commercial vehicles, gen-sets, and construction equipment.

Speaking on the occasion Mr Thapar said, “The engines manufactured at the new facility will cater to the fast growing four-wheeled vehicle segment”. Greaves is one of the largest independent manufacturers of light diesel engines for leading three-wheelers in India.

Revenue growth

For the year ended June 30, 2007, Greaves Cotton posted 30 per cent growth in revenue that stood at Rs 1,229 crore against Rs 948 crore for the previous year. Net profit was up 44 per cent at Rs 122 crore from Rs 85 crore year-on-year.

Sales for the infrastructure equipment business were up by 89 per cent. The company has declared a final dividend of Re 1 per share, taking the total dividend to Rs 7 per share for the financial year.

Market call

Greaves, which has four manufacrturing units in India including three in Aurangabad, has core competencies in the areas of engines and infrastructure equipment. It recently acquired Bukh-Farymann Diesel GmbH, a diesel engine manufacturing company in Germany. This acquisition fits well into Greaves strategy to move aggressively into global markets, a statement said.

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