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Greaves Cotton plans to expand its construction equipment products range. The Rs 1,700-crore multi-product company, has signed a pact with Samil of South Korea seeking technical know-how for products such as stationary concrete pumps and boom pumps.
Greaves currently manufactures compaction and concreting equipment at its facilities in Gummidipoondi, near Chennai. The range includes transit concrete mixers, concrete pumps, batching plants and vibratory soil compactors, heavy tandem rollers and light tandem rollers. These are mainly used in construction of roads, bridges and buildings.
The Samil tie-up is expected to help Greaves Cotton better its products range. Mr Sunil Pahilajani, Managing Director and Chief Executive Officer, Greaves Cotton, said with the introduction of the new product range, the construction equipment division's contribution to the company's turnover will go up 17 per cent in the next three to four years from the current 12 per cent.
Greaves' competitors include Escorts, L&T Case, Ingersoll-Rand and Schwing Stetter. According to Mr Pahilajani, the Korean tie-up would also enable Greaves to explore export possibilities.
Mr Ramachandran Nandagopal, CEO, Construction Equipment Division of Greaves Cotton, said the company plans to embark on other revenue streams such as rentals, to re-construct its business model. Elaborating on this initiative, he said in mature markets such as the US, 60 per cent of the new equipment goes to the rental segment. “Though, at present, it is a very small business segment in India, it will enable us to establish the brand in the market,” said Mr Nandagopal.
Greaves Cotton's other business verticals are automotive engines (diesel and petrol engines for three- and four-wheelers), gensets and farm equipment.
With over 50 per cent share, its automotive engine division is the major contributor to the company's turnover. The company is also planning to expand its diesel engine manufacturing capacity to 5 lakh units a year from the current 4 lakh units. It manufactures diesel engines at two facilities — at Ranipet in Tamil Nadu and Aurangabad in Maharashtra.
The expansion at both the plants will entail an investment of Rs 100 crore, said Mr Pahilajani.
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