This year, Greaves Cotton Ltd, a diversified engineering company, plans to spend about Rs. 110 crore capital on its electric two wheeler plant located in Ranipet in Tamil Nadu, as per company official. The company informs that the plant will roll out two wheelers by the end of this year.
The Managing Director and Group CEO of Greaves Cotton, Nagesh A. Basavanalli, said to media people, “We plan to invest about Rs. 110 crore towards capital expenditure this year. About Rs. 70 crore will be for the electric two wheeler plant at Ranipet to be commissioned by the end of this year.”
He added that the Rs. 1500 crore turnover group will fund capex out of its internal accruals.
Greaves Cotton signs MoU with Tamil Nadu Government
Greaves Cotton has signed an MoU with Tamil Nadu government to invest around Rs. 700 crore over 10 years’ time period to establish a plant with one million unit as its annual capacity.
According to company’s statement, initially, the plant’s production capacity will be around 1 lakh units annually. It will then be increased to one million units in a course of time.
How Greaves Cotton entered the electric vehicle segment
Greaves Cotton had ventured into the electric vehicle segment after acquiring Ampere Vehicles, a Coimbatore-based company.
Last year, Ampere Vehicles bought 74% stake in Bestway Agencies, which is a Noida-based electric rickshaw manufacturer and rolls our Ele brand of vehicles. The remaining 26% in Bestway is planned to be acquired in 2022.
According to MD of Greaves Cotton, the group shows no immediate plans to consolidate production of electric vehicles in Ranipet. “The E-Rickshaw market is in North and East and we are looking at other products that could be made at Ranipet.”
About Greaves Cotton
Greaves Cotton is one of the leading diversified engineering companies in non-automotive, automotive, retail, aftermarket, finance, and electric mobility solutions. In non-automotive segment, the company is involved in the manufacture of farm and application drive industries in marine, gensets, light construction, and other industrial applications.
