Greaves Cotton bullish on agri sector

  • 01/04/2008

  • Business Standard

Engines and construction equipment maker Greaves Cotton is planning to leverage the current buoyancy in demand for engines from the agricultural sector. It has lined up several products targeting this sector, according to sources from the company. The company makes engines ranging between 1 and 4 HP, used mainly for pumpsets, power tillers and other such applications. Engine sales to the agricultural sector contributed nearly 8.4 per cent of its total sales of Rs 1,215.8 crore for the 12 months ended June 2007. According to sources, the company has aggressive growth targets for this segment over the next few years. But they declined to provide specific details. Recently, the company started supplying components to Germany-based Bukh-Farymann Diesel, which it acquired last year, in a bid to bring down costs. Says Praveen Sachdev, managing director, Greaves Cotton, "We are currently working on realising operational and marketing synergies with our overseas acquisition.' Greaves Cotton is also talking to several automobile companies for the supply of its recently launched twin-engine cylinder. In August 2007, the company had inaugurated its new facilities in Aurangabad for the manufacture of twin-cylinder engines and transmission packs. In January, the company renewed its agreement with Piaggio for the supply of mono-cylinder diesel engines for three-wheeled vehicles manufactured by Piaggio. Apart from Piaggio, the company supplies engines to several other automobile manufacturers. For the year ended June 2007, its sale of engines to the auto sector accounted for nearly 58 per cent of its total sales.