Friday, April 25, 2025

Greaves Cotton to continue work on operational efficiency, shut Ranipet plant

- Advertisement -

Greaves Cotton to continue work on operational efficiency, shut Ranipet plant

Engineering major Greaves Cotton will continue to work on operational efficiency, and has decided to shut its Ranipet (Tamil Nadu) plant as part of its exercise for consolidation of plants, its group CEO and Managing Director Nagesh Basavanhalli said.

The company expects passenger three-wheeler segment, which has taken a hit due to concerns around shared mobility, to recover in the second half of this fiscal, he said.

Greaves Cotton is a leading manufacturer of fuel-agnostic engines in CNG, petrol, and diesel segments. It operates in multiple segments, namely automotive, non-automotive, aftermarket, retail, electric mobility through Ampere Electric for electric scooters and other electric industrial products and e-rickshaws.

“The company will continue to work on the operational efficiency. We have already committed to some plant consolidation, taking out over 10 per cent of fixed costs, which would mean there will be plant consolidation, some overhead cost reduction and strong focus on working capital management, cash flow, among others, going forward,” Basavanhalli told PTI.

Stating that Greaves has a very strong working capital and cash flow management, he said, “As part of the operational efficiency, the company has decided to shut Ranipet (Tamil Nadu) plant and consolidate operations at Aurangabad plant in Maharashtra.”

The company has six manufacturing plants across the country, including in Ranipet, Aurangabad and Pune.

He said the company”s non-auto small engine business has been doing well and is roughly at 1.75x of pre-COVID level.

“The company saw a good rebound in Q2 in the non-auto small engine segment which was also the big part of the company”s diversification strategy. The aftermarket business is back to pre-COVID level with 6,000 retailers added and stores returned to normal, and e-mobility business, although a small segment, is growing at an all time high,” Basavanhalli said.

“Also, the company is doing well in the cargo engine segment which is down only by 10-20 per cent,” he added.

In October-March, the company is expecting recovery in the three-wheeler passenger segment (automotive engine segment) which has declined almost 50-60 per cent because of concerns on shared mobility due to COVID-19, he said.

The segment is anticipated to get better every passing month with consumer confidence returning. Genset segment is also expected to pick up in the second half of the fiscal, he added.

Greaves Cotton is continuously looking at new markets, new products and offerings in order to get closer to customers, he said, adding that the company will continue focusing on profitable growth going forward.

The company reported a consolidated net loss of Rs 22.49 crore in the second quarter ended September 30 as against a consolidated net profit of Rs 43.63 crore in the year-ago period.

Its consolidated revenue from operations stood at Rs 329.38 crore as compared to Rs 512.42 crore in the same quarter last fiscal.

The revenue from engine business accounted for 47 per cent of the total revenue during the quarter, while the aftermarket segment had 25 per cent share.

Share of e-business revenue was at 13 per cent, while the rest of 15 per cent was from other businesses, as per the company.

Editorial

Why TCS Deferred FY25 Salary Hike: Better Hike Ahead?

TCS had initially announced its annual salary hike during...

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

TCS Announces 4-8% Salary Hike for FY25, Lowest in Last 4 Years

Tata Consultancy Services (TCS), India's largest IT services provider,...

Must Read

Infosys in India is hiring for various roles, Hybrid, WFO jobs; Apply

India's second largest IT services provider company Infosys is hiring tech...

Capgemini to hire 25K and reskill 50K employees in India

Capgemini to hire 25,000 people in 2020 and reskill...

OZiva announces WFH for new mothers; mothers with children upto age 3

A clean and plant-based holistic wellness brand, OZiva has...

Flipkart and Swiggy to sack 1,000 & 400 employees respectively

As per media reports, Walmart-owned, Flipkart to sack around...

Celsius crypto lending platform lays off 150 employees

Cryptocurrency lending platform, Celsius has laid off 150 employees...

Human Connect & Technology – The Future of HR

The human mind has always posed a challenge and relationships...

TCS HR Manager Killed in Bus accident

A 35-year-old HR Manager of Tata Consultancy killed after she...

Related Articles

SightsIn Plus
SightsIn Plushttps://sightsinplus.com/
SightsIn Plus is an India’s leading high-quality people-focused monthly HR Magazine and provides up-to-date HR News, Leadership Announcements, Best HR Practices and Insights by Global CHROs, CEOs, HR Advisors, Business Managers and HR Heads on topics of interest to HR professionals. To subscribe SightsIn Plus, HR Magazine please visit- https://sightsinplus.com/subscribe/