Battling the slowdown in economy, Greaves Cotton is strengthening its product offerings to reach out to new markets, while ensuring costs are optimum.

“In short, it is new products, new customers and new markets and this is the way we try to retain our position,” said Sunil Pahilajani, MD and CEO, Greaves Cotton.

Pahilajani spoke of the challenges in these trying times and the steps taken to stem the tide.

Established in 1859, Greaves Cotton is a diversified engineering company, which is into manufacturing, automotive engines for small commercial vehicles, industrial engines, gensets, farm and construction equipment.

What measures have you taken to shore up sales?

The challenges have to be met in many ways. In the back end, if you see our financials, we have controlled internal costs. The contribution to EBITDA is about one per cent. On front end, getting into new markets and products is the focus.

We have launched several products such as the boom pump, mini tractor, reaper and others, besides smaller equipment, not so well announced, to complete the range and add more value.

We are working on several new products in the pump-set range. Gensets need to conform to the new pollution norms. We have up to 500 KVA and a sub 20 KVA has been introduced. This is one way to give more options and cover more markets.

What about the international markets?

We have started our own office with sales and service in Tanzania. Indonesia is next. We already have presence in SAARC. In the West Asia we have a company in Dubai.

The revenues you make from overseas sales…

Two years ago, it was between one and 1.5 per cent. Now, it has reached 3-3.5 per cent. Our aim is to touch 10 per cent in three to four years time. Internationally, we sell gensets, industrial engines and agriculture equipment.

[In Q3FY14, Greaves Cotton clocked revenues of `423 crore.]

Our strategy also includes building capability and strengthening the organisation, through training and education, besides talent retention.

In such times, is it difficult to retain talent?

Yes. Good talent is very important. In hard times, when business activity is low it is very important to keep people engaged.

Is there a move to move away from auto engines and focus on other verticals so that they can compensate any shortfall in auto?

Today, there is downturn in every sector so it is very difficult. However, other verticals are growing. The auto share is close to 55-60 per cent and the rest constitute the balance.

You were making an engine for the quadricycle. Is it ready?

It is ready and we have made proposals to our customers.

comment COMMENT NOW