Greaves Cotton Ltd Management Discussions

ECONOMIC REVIEW Global Economy

The global economy maintained steady growth in FY 2024-25, despite challenges posed by geopolitical uncertainties, trade disruptions and inflation. Infrastructure investments and policy measures played a key role in supporting economic stability, allowing major economies to adapt to shifting conditions. However, growth patterns varied across regions, with advanced economies expanding at a slower pace of 1.7% in both 2024 and 2025, primarily due to the impact of high interest rates. In contrast, Emerging Markets and Developing Economies (EMDEs), particularly in Asia, demonstrated resilience by achieving growth rates of 4.4% in 2024 and 4.2% in 2025. The presence of supply chain vulnerabilities compelled businesses and governments to reassess their trade dependencies and adopt more effective strategies to enhance stability. Although inflation eased compared to previous years, it remained a concern, prompting central banks to take a careful ....approach to monetary policy.

Looking ahead, global economic growth is projected to be supported by sustainability initiatives and continuous innovation. Although risks such as policy uncertainty, geopolitical tensions and monetary policy tightening persist, the global economy is expected to remain stable at 3.3% in both 2025 and 2026. Inflation is projected to decline from 4.2% in 2025 to 3.5% by 2026, with advanced economies anticipated to achieve their inflation targets ahead of emerging markets. Growth in advanced economies is expected to be moderate, with rates of 1.9% in 2025 and 1.8% in 2026. Meanwhile, Emerging Markets and Developing Economies (EMDEs), led by China and India, are projected to maintain steady growth rates of 4.2% and 4.3%, respectively.

The global push for a sustainable future has been gaining momentum, supported by rising investments in renewable energy. However, volatility in energy markets continues to pose challenges, affecting supply chains and overall economic stability. The United States has introduced a new reciprocal tariff policy, imposing a 26% tariff on over 180 countries, including India. This marks a significant change in global trade and may create challenges for the Indian economy while also promoting strategic adaptability. Higher import costs may lead to increased consumer prices worldwide. Despite these uncertainties, economies are expected to remain resilient by adopting technological advancements and executing well-planned strategic policies.

Indian Economy

India has become one of the fastest-growing major economies, driven by strong domestic demand, structural reforms, and supportive policies. However, in FY 2024-25, global economic uncertainties, rising geopolitical tensions and persistent inflationary pressures impacted Indias growth, and affected the growth role. According to Ministry of Statistics and Programme Implementation (MOSPI)s second advance estimates, the economy grew by 6.5% year-on-year (YoY) in FY 2024-25, slower than the 9.2% growth recorded in FY 2023-24.

Despite this moderation, India remained on a steady growth path, supported by strong manufacturing, expanding services and increased infrastructure investments. Government initiatives promoting digital transformation, financial inclusion and ease of doing business further strengthened the economy. The Production-Linked Incentive (PLI) schemes encouraged domestic manufacturing and attracted significant foreign direct investment (FDI), particularly in sectors like electronics, automotive and renewable energy.

While global demand fluctuations affected external trade, strong export growth in key sectors such as pharmaceuticals, textiles and engineering goods provided stability. Additionally, efforts to diversify trade and sign free trade agreements (FTAs) helped reduce external risks. Rising urbanisation and a growing middle class also contributed to increased consumer spending across various sectors. Building on this momentum, Indias economy is projected to grow at 6.5% in FY 2025-26.

Inflationary pressures remained a concern in FY 2024-25, primarily due to global supply chain disruptions and commodity price volatility. RBI announced that the repo rate would be reduced by 25 basis points to 6%, following a unanimous decision by the Monetary Policy Committee (MPC). Previously, the repo rate stood at 6.25% and was last cut during the monetary policy review in February 2025. The decision was taken amid evolving global economic conditions, particularly concerns arising from US reciprocal tariffs on major economies, which have contributed to global growth uncertainties. Despite this adjustment, the MPC retained a "neutral" stance to ensure flexibility in addressing macroeconomic changes. Meanwhile, Consumer Price Index (CPI) inflation for FY 2024-25 is projected at 4.9% as compared to 5.4% in FY 2023-24 and is further projected to decline to 4.0% in FY 2025-26. However, key risks such as geopolitical tensions, fluctuations in global commodity prices and financial market uncertainties could influence economic growth prospects.

Going forward, Indias economic outlook remains positive, with growth projections staying above the global average. The governments initiatives, including the Production-Linked Incentive (PLI) scheme and the promotion of electric mobility, are playing a significant role in driving economic growth. Additionally, continued investments in infrastructure, renewable energy and digital transformation are expected to support the countrys long-term expansion. India is well-positioned to continue its growth trajectory and establish itself as a leading economic powerhouse by maintaining fiscal discipline, imparting a culture of innovation, and strengthening global partnerships.

COMPANY OVERVIEW About the Company

Greaves Cotton Limited (hereafter referred to as ‘GCL or ‘Greaves or ‘the Company) is a comprehensive engineering Company with a rich 165+ years heritage, built on a strong foundation of innovation, quality, and reliability. The Company has evolved from manufacturing single-cylinder diesel engines to offering fuel-agnostic powertrain solutions, electric mobility, aftermarket, and retail services.

GCL operates through five independent business units - Greaves Engineering, Greaves Electric Mobility Ltd. (GEML), Greaves Retail, Greaves Finance Ltd., and Greaves Technologies Ltd. The Company combines agility with strategic focus to drive innovation, enhance accessibility and ensure long-term growth. In FY 2023-24, GCL acquired a majority stake in Excel Controlinkage Pvt. Ltd., a leading Indian manufacturer of mechanical and electronic motion control systems with a global presence, exporting to Key geographies globally. Greaves has strengthened its capabilities and expanded its global footprint through the acquisition of Excel Controlinkage, creating new opportunities for growth and enhancing the Companys expertise in motion control systems. Moreover, GEML filed the Draft Red Herring Prospectus (DRHP) for GEMLs proposed IPO in December 2024. This strategic decision aligns with the Companys vision for long-term growth and market leadership, reinforcing its commitment to innovation, technological advancement, and business expansion.

GCL has made significant investment in technology and human capital, positioning itself as a leader in Indias Electric Vehicle (EV) and sustainable mobility markets. The Company has strengthened its presence in the non-automotive sector with a diverse range of gensets, agricultural machinery and industrial applications, including marine solutions.

GCL actively supports the ‘Make in India initiative by prioritising local production and sourcing. Greaves is committed to sustainability by advancing cleantech and green mobility solutions to benefit a billion lives by 2030. GCLs efforts to reduce its carbon footprint and promote environmental preservation reinforces its dedication to responsible growth.

Company Performance

Greaves is strategically expanding its product portfolio by entering the fields of mechatronics and electronics. The Companys continued success is driven by its strong focus on enhancing capabilities, delivering a compelling value proposition, and addressing the diverse needs of its customers. The favourable economic conditions in India, an expanding global customer base, a diverse range of platform technologies and strong brand recognition continue to reinforce Greaves confidence in its future prospects.

Greaves continued to make steady progress in building a fuel-agnostic portfolio to reduce dependence on diesel engines and prepare for future market needs. The Company expanded its internal combustion engine (ICE) and Genset offerings by introducing fuel-agnostic variants that can run on CNG, biodiesel and ethanol-blended fuels. Moreover, the Company showcased its cutting-edge mobility solutions, including electric two and three wheelers (3Ws) and eco-friendly innovations, at Auto Expo 2025, reinforcing its commitment to sustainable mobility.

CONSOLIDATED FINANCIAL PERFORMANCE

In FY 2024-25, GCL reported consolidated revenue from operations of Rs. 2,918.44 crore, up from Rs. 2,633.19 crore in FY 2023-24, registering a growth of 11%. The Company recorded a consolidated Loss after taxes of Rs. 6.28 crore, compared to a loss of Rs. 367.27 crore in the previous year. As part of Greaves diversification strategy, new business initiatives contributed 63% of the total consolidated revenue for FY 2024-25.

SEGMENTWISE BUSINESS OVERVIEW

GCLs core business segments consist of engineering, which is further divided into automotive, non-automotive and international business segments.

ENGINEERING BUSINESS

Greaves Engineering leads in innovative design engineering and precision manufacturing, driving motion across industries. Its diverse portfolio includes Internal Combustion Engines, Motion Control Solutions, ePowertrain and Auxiliary

Power Solutions, catering to critical applications that support nation-building. Moreover, the Companys manufacturing plant in Shendra, Aurangabad, is also assembling ePowertrain for mobility and other applications. Additionally, the Shendra plant received AS9100D certification, suitable for manufacturing components for the aerospace industry.

Greaves Engineering is a trusted name in power generation across India, the South Asian Association for Regional Cooperation (SAARC) region, the Middle East, and Africa. Greaves is the only standalone engine manufacturing company in India to also assemble gensets entirely in-house at its state-of-the-art Talegaon facility, showcasing Indian manufacturing excellence. Notably, Greaves gensets powered Indias third scientific expedition to Antarctica in 1983 and continue to support vital institutions nationwide. With a nationwide service network of 120+ locations, the Company offers single-window service, 24/7 support and live remote monitoring via the ‘Greaves 1 app. A new range of Central Pollution Control Board (CPCB) IV+ compliant gensets were introduced in FY 2024-25. GreavesalsolaunchedtheD435EXDiesel(Passengervariant)in FY 2024-25, enhancing its diesel engine portfolio.

Automotive Engines Industry Overview

As Indian cities continue to expand, the demand for efficient and affordable transportation solutions, particularly for last-mile connectivity, is on the rise. 3Ws have emerged as a cost-effective and efficient alternative to traditional transportation options, making them an attractive choice for both individuals and businesses. The growth of e-commerce has also contributed to the recovery of the Level 5 (L5) market, which has reached pre-pandemic levels.

The Indian governments initiatives to promote greener mobility, including incentives, lower Goods and Services Taxes (GST) rates, reduced battery costs, and relaxed registration fees, have accelerated the adoption of electric vehicles (EVs). As a result, electric three wheelers (E3Ws) are gaining traction, particularly in mass transportation and last-mile connectivity. According to primary sales data from Society of Indian Automobile Manufacturers (SIAM), the L5 E3W segment achieved an impressive 57% year-on-year growth in FY 2024-25, with further growth expected in the future.

However, the increasing adoption of E3Ws may impact the demand for Compressed Natural Gas (CNG) 3Ws in urban areas. On the other hand, the expansion of nationwide CNG infrastructure is expected to drive volumes. In rural areas, the development of infrastructure is driving demand for cost-effective mobility solutions, resulting in a 3% year-on- year increase in diesel 3W sales. Additionally, market trends indicate a shift in L3 e-rickshaw volumes towards L5 E3Ws, highlighting changing consumer preferences.

Business Overview

Greaves introduced automotive engines that complies with On-Board Diagnostics II A (OBD-IIA) standards for the 3W industry in FY 2023-24. This innovation received a strong market response, despite relentless tightening of emission norms leading to significant volume growth in the diesel segment. Building on this momentum, the transition to OBD-IIB norms is scheduled for implementation from 1st April 2025.

Greaves has made significant strides in developing cost-effective powertrains that meet stringent emission regulations. Notably, the Companys diesel 3W powertrain has achieved OBD-IIB compliance, offering customers maximum value while ensuring regulatory adherence. With certification from the Automotive Research Association of India (ARAI), the Companys customers are well-positioned for timely launches of OBD-IIB-compliant vehicles.

On the diesel front, despite increasingly stringent emission norms, Greaves has successfully developed engines that meet the latest standards without relying on non-mechanical solutions. Furthermore, the Companys lightweight bi-fuel CNG engine has been designed to meet both OBD-IIA and OBD-IIB standards, providing an optimised solution for CNG cargo applications.

Further expanding its global footprint, Greaves has started exporting Euro V+ compliant diesel engines for micro-car applications for its European Markets. This initiative has received a strong market response and is expected to drive significant growth in the coming year.

Market Overview and Outlook

In FY 2024-25, the L5 3W segment experienced significant growth, driven by increasing urbanisation and a rising demand for efficient and affordable transportation. The sectors growth was primarily fuelled by the increasing adoption of electric vehicles (EVs), supported by an expanding EV charging network and declining battery prices. The market is expected to continue growing, with electric and CNG 3Ws leading the way, while diesel 3Ws are expected to remain steady or experience slight decline.

The CNG 3W segment continued to expand, driven by the rapid growth of CNG filling stations. CNG 3W volumes are expected to reach approximately 3.5 lakh units, maintaining last years sales levels. This growth is a testament to the increasing adoption of CNG as a preferred fuel option for 3Ws.

Diesel 3Ws also recorded growth in FY 2024-25, primarily driven by rural infrastructure expansion. In these regions, customer preference for diesel 3Ws remains strong due to the narrowing fuel price gap between CNG and diesel, and the superior total cost of ownership (TCO) offered by diesel vehicles. This highlights the ongoing demand for diesel 3Ws in rural areas, where they remain a popular choice for transportation.

Risks & Concerns

Government regulations, particularly those imposing restrictions on diesel usage, may affect the demand for diesel-powered vehicles in the internal combustion engine (ICE) 3W segment. This impact is expected to be more significant for vehicles used for cargo transportation.

Non-Automotive Engines Industry Overview

The power solutions industry, both globally and domestically, is undergoing continuous transformation, driven by infrastructure investments, regulatory developments, and technological advancements. The Genset market plays a vital role in ensuring a reliable power supply across key sectors, including manufacturing, infrastructure, healthcare, hospitality, and agriculture.

In India, government-led infrastructure initiatives such as Project Ude Desh ka Aam Naagrik (UDAAN) for airport expansions, railway station modernisation and highway development have significantly boosted the power generation industry. Additionally, programmes like the Jal Jeevan Mission have driven demand for gensets in rural and semi-urban areas. However, the transition to CPCB IV+ norms and the resulting price increases have impacted government procurement patterns. While the pre-buying of CPCB II gensets in early FY 2024-25 led to a temporary slowdown, the market is expected to stabilise by early FY 2025-26.

The retail genset market has remained resilient, with strong demand from the hospitality, tourism and manufacturing sectors, creating new growth opportunities. The industry is poised for a positive trajectory, driven by increasing investments in sustainable power solutions, alternative energy sources and advanced power management technologies. As businesses navigate evolving regulations and economic conditions, innovation, market diversification and operational efficiency will be key drivers of sustained growth.

Similarly, the industrial engines sector has experienced steady growth post-COVID, supported by government spending on infrastructure, agriculture, and industrial mechanisation, particularly in the farm and construction segments. Domestic and export markets have also gained momentum, fuelled by policies such as Atmanirbhar Bharat. Additionally, the growing availability of fuel-agnostic solutions has garnered a positive response from the market, reflecting a rising preference for versatile and sustainable energy options.

Meanwhile, the farm industry continued to expand, driven by technological advancements and the growing adoption of tractors. With states prioritising farm mechanisation, adoption has been accelerating, further supported by initiatives like Make-in-India and a growing preference for domestic products. Given that over 50% of the population remains engaged in agriculture, the sector remains a key focus area for investment and long-term growth.

Business Overview

Greaves operates across multiple sectors, specialising in auxiliary power solutions, including Diesel Generator Sets compliant with CPCB-II and CPCB IV+ standards, as well as low-voltage and high-voltage power solutions and turnkey power projects. The Company also offers industrial engines ranging from 1.5 HP to 700 HP, catering to sectors such as construction, marine, agriculture, firefighting, and defence.

Greaves serves both domestic and international markets across Business-to-Business (B2B) and Business-to- Customer (B2C) segments, providing customers with a variety of options, including multiple fuel types, cooling systems, Revolutions Per Minute (RPM) ranges and regulatory certifications. In July 2024, Greaves Engineering introduced CPCB IV+ compliant gensets ranging from 5 to 500 Kilovolt-Ampere (kVA) to meet the growing demand for high-performance, reliable, and sustainable power solutions.

In FY 2024-25, the Company navigated regulatory changes, market fluctuations and economic conditions while expanding its presence across key regions. The implementation of CPCB IV+ emission norms resulted in strong pre-buying of CPCB II gensets in FY 2024-25, followed by a temporary demand slowdown in the second quarter and a gradual recovery in subsequent quarters. The genset market remained stable, with demand driven by real estate, infrastructure, industrial and government sectors.

The industrial engines segment recorded growth across all categories, supported by the introduction of new products that offer advanced fuel options, cooling systems, Revolutions Per Minute (RPM) ranges and emission-compliant solutions. While overall demand remained strong, the marine fishing segment experienced sluggish growth.

Greaves achieved growth in both large and small engine segments, driven by strategic Original Equipment Manufacturers (OEM) partnerships in export markets. The firefighting, agriculture, construction, and component businesses saw increased sales, supported by new OEM additions and government initiatives. The demand for firefighting engines, particularly FM-approved and UL-listed (FMUL) engines, remained steady in both domestic and international markets, driven by warehousing and data centre projects. Additionally, government initiatives focussed on affordable housing, railway station upgrades and airport expansions are expected to drive further growth in the firefighting and construction segments. Inland waterways and institutional sales under the Make in India initiative maintained strong momentum, with continued demand anticipated in the coming years. The marine segment also experienced growth, supported by favourable sea conditions and government subsidies.

Market Overview

In FY 2024-25, the genset market experienced an 8% decline in volume, while its value grew by 10%, reflecting a shift towards higher-value products. The high horsepower (HHP) genset segment continued to expand, driven by the growing demand from data centres. The increasing reliance on digital infrastructure, cloud computing and Artificial Intelligence (AI)-driven technologies is expected to sustain the need for reliable backup power solutions in data centres. Industry growth will be influenced by infrastructure investments, regulatory changes, and technological advancements, with premium and HHP gensets playing a crucial role in addressing evolving power requirements.

Industry players are focussing on domestic markets, specific applications and expanding export opportunities, which has grown in recent years. The transition to electronic engines has accelerated due to evolving emission norms, leading to greater adoption in the industrial segment.

Risks and Concerns

The shift from diesel engines to alternative, greener fuel options, including electric power, presents both opportunities and risks. The transition could disrupt existing market dynamics, posing a risk to traditional diesel-based revenue streams. In response, the Company is mitigating this risk by investing in Research and Development (R&D) to modernise its portfolio and build capabilities in fuel-agnostic engines and electric motor controller powertrains, ensuring adaptability in an evolving regulatory and competitive landscape.

Outlook

Ongoing government investment in infrastructure projects presents opportunities for market expansion and revenue growth. Participation in development programmes, including power sector projects, inland waterways in the northeast, and the shipbuilding OEM sector, has strengthened the companys position to leverage this growth. Gensets are expected to gain momentum in telecom, Government e-Marketplace, Jal Jeevan Mission, and government-funded projects. Non-Automotive Small Engine sales have grown steadily over the past 3-4 years, with continued efforts to introduce new products and expand the customer base. A commitment to customer-driven innovation and service excellence will support long-term growth in an evolving market.

EXCEL CONTROLINKAGE

Excel Controlinkage (Excel) is a leading provider of customised motion control solutions designed for moving vehicles. It offers a comprehensive range of products, including push-pull cables, gear-shift levers, steering solutions, rubber accessories, mechanical conduits and electronic sensors, serving key industries such as automotive, marine, agriculture, infrastructure, and construction. Excel has continuously expanded its operations and diversified its product offerings to meet the evolving needs of its customers, since its establishment in 1994. Excel holds prestigious certifications, including International Automotive Task Force (IATF), International Organisation for Standardisation (ISO) and CE (Conformite Europeenne - European Conformity), reflecting its commitment to maintaining high-quality standards and compliance with global regulations. With a diverse customer base, exports contribute to nearly one-third of its annual revenue, reinforcing its strong presence in international markets in FY 2024-25. Excel was honoured with the "Best Exporter in the Region" award by the Vidarbha Industries Association (VIA) in recognition of its excellence in exports during the year under review.

Market Overview

Excel drives the market for motion control solutions covering control linkages, cable assemblies and electronic components, benefiting from increasing demand by actively collaborating with customers during the vehicle design stage. Excel has established a strong presence in both domestic and international markets by consistently delivering high-quality products that meet stringent industry standards within the targeted timelines. The Company serves clients worldwide, ensuring its products comply with relevant regional certification norms, such as EU certifications for products sold in Europe. With a customer base covering over 60+ countries, Excel is recognised for its reliability, consistency, and commitment to high-quality manufacturing. The Company excels in identifying new opportunities for global expansion, remaining at the forefront of industry trends and evolving customer requirements. Excel leverages its expertise and resources to explore new business avenues, including electronic components, rod-type gear shift unit assemblies, combined drive platforms for operator controls, hydraulic marine steering systems and gear-shift unit assemblies for small commercial vehicles. Additionally, by utilising the aftermarket channel of Greaves Retail, Excel is now catering to customer requirements for service and replacement solutions.

Risks & Concerns

Excel has strategically focussed on niche segments within the motion control industry, enabling it to differentiate through superior technology and customer service. This proactive approach positions Excel well to tap into emerging opportunities while minimising exposure to intensifying competition in existing segments. It continues to focus on innovation and solution-based offering, ensuring it retains pricing power and a premium position for its products.

Excel has established robust contingency plans to address potential supply chain disruptions arising from geography-specific trade and non-tariff barriers, raw material shortages and transportation delays. These measures help mitigate risks that could impact production schedules and delivery timelines. Given the importance of adherence to international standards and certifications for export-oriented companies, regulatory changes or non-compliance could result in penalties or restricted market access. Therefore, the Company strictly adheres to all required international standards and certifications to maintain seamless global operations.

Additionally, fluctuations in currency exchange rates, trade policies and economic conditions in key markets can influence export volumes and profitability. Excel remains vigilant in managing economic volatility to sustain profitability. As technological advancements continue to reshape the industry, continuous investment in research and development is essential to meet evolving customer demands. As a market leader, the Company proactively monitors industry trends and consumer preferences, ensuring it remains ahead of market shifts that could impact its position. Excel aims to improve productivity and agility by using Greaves proven systems and manufacturing processes, allowing it to efficiently meet the growing demand for diverse products.

Outlook

Excel has established a strong track record of market leadership in its chosen product segments. It possesses a deep understanding of the industry dynamics that influence the sectors it serves. As a result, the Companys business outlook remains optimistic. Excels primary markets, including the automotive and construction industries, are expected to experience resilient growth in the coming year. This positive outlook is further reinforced by its strong brand reputation, loyal customer base, culture of continuous innovation, diverse product portfolio and unwavering commitment to quality and agility. Excel remains confident in its ability to navigate challenges and capitalise on future growth opportunities. It aims to strengthen its presence in existing markets while actively exploring opportunities in emerging sectors.

INTERNATIONAL BUSINESS

Industry Overview

The Company is expanding its presence in global markets by serving key industries, including manufacturing, power generation, healthcare, infrastructure, agriculture, services, firefighting, and mobility. With a diverse portfolio of engines, diesel generator sets and spare parts, it remains committed to meeting the evolving needs of these sectors.

Business Overview

The Company has continued to grow across Africa, South Asian Association for Regional Cooperation (SAARC) and the Middle East, driven by the addition of key accounts to its portfolio. However, business performance in Southeast Asia (SEA) and Turkey was impacted by liquidity challenges and reduced demand. The stabilisation of oil prices has alleviated financial pressures on African economies, supporting economic recovery and currency stabilisation, which indicate long-term business opportunities.

In 2024, general elections in several countries contributed to greater government stability, leading to increased project-based demand and government tenders. This has created a strong foundation for sustained momentum and future business expansion.

Risks & Concerns

• Currency depreciation against the US Dollar (USD) in several countries, including Nigeria, Ethiopia, South Africa, Egypt, and Turkey, has weakened purchasing power and decreased import demand

• Limited foreign exchange availability has further impacted trade, with priority given to essential commodities over infrastructure-related imports

Despite these challenges, economic stability is expected to improve in FY 2025-26 as inflation risks ease across multiple regions. The Company remains committed to monitoring macroeconomic trends and adapting its strategies to mitigate potential impacts on business operations and drive growth.

Business Performance

In FY 2024-25, the Company introduced Factory Mutual (FM) and Underwriters Laboratories (UL)-listed engines in the Middle East market, attracting strong interest from firefighting pump set manufacturers. The Company has formulated plans to extend these offerings into European markets, reinforcing its presence in the Middle East while unlocking new growth opportunities.

The Company has expanded its operations in Uganda, Madagascar, Kenya, and Ethiopia, while advancing collaborations in West Africa to drive regional growth. In the SAARC region, the successful deployment of Mega KVA Gensets in government organisations and corporations has reinforced its position in the high capacity genset segment.

Greaves EURO-V engine for microcars is already in use in European markets and the supply of Euro V+ engines to Europe has commenced. Additionally, the engine component business with U.S.-based customers continues to grow, with further expansion anticipated. These developments reflect the Companys commitment to global expansion, innovation, and long-term business sustainability.

Outlook

The Companys strategic focus on expanding its market reach is expected to drive business growth. With a robust pipeline of product launches planned for FY 2025-26, the Company is well-positioned to maintain its growth momentum and strengthen its market presence.

GREAVES RETAIL

Greaves Retail continues to be among the top three players in Indias aftermarket space for three-wheeler internal combustion engine (3W ICE) vehicles, small commercial vehicles (SCVs), heavy commercial vehicles (HCVs), construction equipment (CE), and electric three-wheelers (e3Ws), across both passenger and commercial segments. The Company operates on an asset-light business model, which supports efficient capital use and ensures a strong return on capital employed (ROCE).

In FY 2024-25, Greaves Retail made strong progress across its core business areas, while its newly incubated segments - such as EV components and HCV parts - also began to gain traction. The Company continued to expand its presence in multi-brand parts and steadily grew its channel network.

In the non-automotive segment, Greaves Retail acquired several institutional customers for auxiliary power equipment, genset spares, and related services. The Company further deepened its engagement with Indian Railways across multiple zones, supporting genset uptime in power cars. Additionally, it launched energy management services (EMS) for telecom and other institutional customers, offering lithium-ion battery solutions as a cleaner alternative to traditional fossil fuels.

New product development remained a key focus during the year. Greaves Retail recorded strong growth in lithium-ion (Li-ion) battery sales for L3 e3Ws and saw rising demand for various EV components. The Company began offering complete e-powertrain solutions to small and medium-sized e-rickshaw OEMs and expanded its reach into the e-rickshaw aftermarket. Improve manufacturing efficiency and reliability, Greaves Retail shifted the production of key components - such as L3 motors and motor controllers (MCUs) - to its existing manufacturing facility in Shendra, Aurangabad. Strong sales were also recorded for e-rickshaw chargers, DC/DC converters, throttles, and cables.

Export growth in aftermarket parts was robust, driven by demand for 3W diesel and multi-brand components. Greaves Retail successfully entered new markets across Africa, SAARC countries, and Southeast Asia.

Digital technology has played a critical role in improving business operations. In FY 2024-25, the Company invested in a cloud-based end-to-end analytics platform that captures data from distributors, retailers, and mechanics. This platform offers deep insights that help manage sales and working capital efficiently, giving Greaves Retail a strong competitive advantage.

The Company also enhanced its "Upahar" Mechanics Loyalty Program (MLP), which aims to bring structure to Indias fragmented aftermarket sector. Through a gamified rewards system, mechanics earn incentives for using genuine Greaves spare parts. The app offers tools, cashback, vouchers, and training on product usage, counterfeit detection, and technology. With support in eight regional languages and real-time insights, the programme now serves over 21,000 enrolled mechanics, with more than 5,000 actively scanning parts every month. Over 170 million points were earned and more than 10,500 redemptions completed in FY 2024-25, reinforcing the programmes value in promoting brand loyalty and genuine parts usage.

Greaves Spares has established itself as a reliable provider of spare parts and services across key automotive and non-automotive sectors. It supplies spare parts and solutions for 2W, 3W, small commercial vehicles (SCV) and EVs in the automotive sector. Additionally, it caters to auxiliary power equipment, farm machinery, railway applications and institutional energy management services in the non-automotive segment. It has built a robust nationwide network to ensure seamless access to high quality spare parts, effectively meeting the diverse needs of customers across the country. The Company offers a comprehensive portfolio of over 5,000 Stock Keeping Units (SKUs), covering a wide range of products across multiple segments. A dedicated team of well-trained sales and service professionals provides localised support and actively collaborates with channel partners to enhance service efficiency and customer satisfaction.

Greaves remains committed to empowering mechanics and channel partners by conducting regular training and skill development programmes. These initiatives help mechanics refine their expertise and improve their livelihoods. Greaves Retail has established a strong distribution network, which includes over 250 distributors, 10,000 retailers and 21,000 mechanics spread across more than 25 states and union territories. The Company also extends these programmes to drivers and micro-entrepreneurs in smaller towns and cities, educating them on product knowledge, emerging technologies, and methods to distinguish genuine spare parts from counterfeit alternatives.

Greaves Retail has significantly strengthened its presence in the EV segment by offering an extensive range of multi-brand components, diagnostic tools, and service equipment for 2W and 3W electric vehicles. The Company has positioned itself as a trusted provider of essential EV components by maintaining high standards of service and product quality. Greaves continues to expand its business engagement opportunities while enhancing customer support and technical education to meet the evolving needs of the EV market.

Greaves Spares continues to lead the aftermarket segment for 3Ws operating on diesel, petrol and CNG. The Company has broadened its offerings to include spare parts for 2W, E2W, 3W (both passenger and commercial), E3W, SCVs and multi-brand products in the automotive sector. In the non-automotive sector, the Company serves industries such as auxiliary power equipment, generator sets, farm machinery, railways, and telecom. The integration of advanced technology has significantly improved spare parts visibility and usage, ensuring better inventory management and operational efficiency.

Greaves Care, the Companys network of over 230 franchisee-owned and franchisee operated, provides multi-brand service workshops for 3Ws, e3Ws, and select e2W brands. These centres procure parts directly from Greaves supply chain, ensuring fast availability and minimal downtime for vehicle owners. Greaves Retail is well-positioned to strengthen its leadership in Indias aftermarket sector and drive long-term sustainable growth with its focus on strategic expansion, technological integration, and customer-centric innovation. Greaves Care offers a comprehensive range of vehicle repair and maintenance services, covering bodywork, engine, gearbox, electrical systems, rubber components, batteries, and lubricants. The Company ensures seamless access to multi-brand spare parts, including EV components, through a nationwide network of service outlets. It empowers channel partners with training on BS-VI standards, EV technology and targeted marketing initiatives to enhance customer engagement and business growth. The Company is also facilitating the retrofitting sector for 2Ws and 3Ws to meet the rising demand for vehicle modifications.

Greaves Retail has prioritised expanding its distribution network in tier-3 and tier-4 cities, enhancing brand awareness and boosting engagement with mechanics through various touchpoints and campaigns. The Company has streamlined its operations by revitalising old distributor relationships, phasing out underperforming partners and appointing new distributors, particularly in North and East India. The business has recorded strong growth in multi-brand and newly launched parts, particularly in the CNG and non-engine segments. Additionally, the 2W and 3W multi-brand network has continued to mature, further driving growth in this segment.

In the non-automotive segment, Greaves has strengthened its relationships with RDSO and institutional customers. In the telecom sector, the Company has partnered with i-Power to supply stationary lithium-ion batteries for telecom towers and data centres. During FY 2024-25, Greaves Retail secured orders from two major telecom tower customers for its EMS solutions and maintenance services.

Risks

The market dynamics are shifting, with the 3W diesel segment experiencing either flat growth or decline as customers gradually transition to cleaner fuels such as CNG and petrol. This shift is impacting the aftermarket sales of parts and services. During FY 2024-25, the automotive parts industry experienced significant headwinds, particularly in the 3W and SCV segments. There was significant disruption due to the General Elections and very heavy monsoon in FY 2024-25.The floods in over ten states in

FY 2024-25 reduced running of vehicles and hence demand for spare parts. Additionally, competitors are attracting distributors by offering extended credit facilities, which carry financial risks. Greaves Retail is de-risking its supply chain as certain critical EV components such as motors still rely on imported parts. Overall, there are market, political, weather & financial risk in the market. Having said there is significant demand in Tier 3-4 market and related segments like SCV, Heavy Commercial Vehicle (HCV) and Construction Equipment (CE).

Overall Outlook - Greaves Retail

As the Indian economy continues to grow, the demand for commercial vehicles and equipment is also on the rise. The expansion of e-commerce, particularly Quick-commerce, is driving strong demand for diesel, CNG, and electric cargo vehicles in the last-mile delivery segment. Greaves Retails fuel-agnostic strategy enables it to serve a wide range of vehicle types.

The Company has strategically expanded its portfolio beyond 3W diesel to include 3W CNG, petrol, and electric 3Ws (e3W), creating a strong foundation for future growth. With in-house manufacturing capabilities for key EV components like motors, the e3W segment remains a major focus for Greaves Retail. Diversification into the ICE parts business, including heavy commercial vehicle and construction equipment components such as cables and rubber products sourced from Excel Control Linkages, offers promising growth prospects.

The non-automotive segment also holds significant potential. The adoption of CPCB IV+ compliant gensets by institutions creates a steady customer base for parts and maintenance services. Additionally, the growing demand for energy management systems (EMS) powered by lithium-ion batteries represents an emerging opportunity.

As Greaves Retail scales up its newer business segments, profitability is expected to improve. Continued investments in supply chain efficiencies and digital technologies, including artificial intelligence, will be key enablers. Greaves Retail is well-positioned to fulfil its mission of "enabling millions of livelihoods and empowering businesses through clean mobility and non-mobility solutions and services."

GREAVES ELECTRIC MOBILITY

Greaves Electric Mobility Limited (GEML), which serves as the electric mobility arm of GCL, has been designing and manufacturing electric vehicles for over 16 years and have established a strong presence in the E2W industry. GEML has successfully built a strong customer base across the E2W and 3W segments. GEML remains committed to designing and manufacturing affordable, value-for-money products.

GEML has further strengthened its market position through Ampere, its flagship electric scooter brand, Ampere is one of the fastest growing E2W brands in the industry. GEML has successfully launched the Nexus model, which has been designed and manufactured in India, along with a generational upgrade of the Magnus series through the introduction of Magnus Neo in January 2025.

GEML has continued to drive consistent YoY growth in the 3W segment, which caters to both passenger and cargo mobility through its subsidiaries. GEML has also filed a Draft Red Herring Prospectus (DRHP) for a proposed Initial Public Offering (IPO) which is subject to regulatory approvals.

GEML has partnered with Indian cricket star Axar Patel to enhance brand visibility and strengthen its connection with a wider audience. This strategic partnership aims to reinforce the brands presence in the market and further its commitment to promoting clean and sustainable mobility solutions.

Two-Wheeler (2W)

Business Overview

GCL acquired GEML (formerly Ampere Vehicles Private Limited) in FY 2018-19 to transform everyday transportation and drive sustainable mobility in India.

GEML achieved significant milestones in FY 2024-25, strengthening its position in the E2W segment. GEML secured approval from the Government of India for the EMPS and PM E-Drive subsidy incentives in relation to its E2W models. GEML sustained its momentum in FY 2024-25 through strategic product launches, regulatory approvals and key partnerships.

GEML continued to expand its presence in the electric mobility market, growing its network of 400 touchpoints. GEML remained focussed on innovation, introducing advanced mobility solutions. Its product portfolio includes slow-speed scooters (Reo), city-speed models (Magnus) and high-speed variants (Nexus). In January 2025, GEML launched the Ampere Magnus Neo, an upgraded version of the Magnus EX, featuring enhanced style, power, safety and affordability. The scooter debuted at Auto Expo 2025 in Delhi after successfully completing a 2,200 km+ journey from Bengaluru to Delhi, showcasing its reliability. Additionally, GEML introduced the Ampere Nexus, a high-speed electric scooter, designed and manufactured entirely in India. The Nexus travelled from Kashmir to Kanyakumari across 45+ days, with deliveries beginning in June 2024 to celebrate Amperes 16th anniversary.

3W - Bestway Agencies Private Limited (BAPL)/ ELE (Electric 3W Brand).

Business Overview

ELE provides a comprehensive range of e-rickshaws that cater to both passenger and cargo transportation needs. GEML introduced new products during the financial year to align with the market transition from lead-acid to lithium-ion e-rickshaws. However, the highly fragmented market and the entry of new OEMs with region-specific products have intensified competition and impacted overall volumes. GEML continues to expand ELEs presence in key e-rickshaw markets to improve accessibility and strengthen its market position.

GEML offers a wide selection of e-rickshaws and cargo vehicles to meet the diverse requirements of B2B enterprises, retail establishments and individual buyers. These vehicles enable operators to maximise their earnings due to their minimal operating costs, making ELE a preferred choice for customers. Recently, GEML has led the way in introducing advanced lithium-ion variants in e-rickshaws, launching new models such as Ele EX and Ele 1000 Li.

Greaves 3W Business Overview

MLR Auto Limited achieved significant growth and market expansion in FY 2024-25, particularly in the conventional fuel segment. The Companys diverse product portfolio, covering both internal combustion engine (ICE) vehicles - including diesel and CNG and electric vehicles (EVs), has enabled it to cater to a wide range of customer needs. A strategic focus on diesel vehicles led to a notable increase in market share from 1.2% in FY 2023-24 to 3.7% in FY 2024-25. This growth was especially strong in South India, where the Company strengthened its presence through network expansion and product enhancements, including an upgraded diesel superstructure variant. MLR also partnered with Shriram Finance to enhance the accessibility of its 3Ws through customised financing options, including competitive down payments and flexible EMIs.

Additionally, the Greaves ELTRA range of EV products expanded across both passenger and cargo segments during the financial year. A key milestone was achieved by Greaves ELTRA City, which entered the India Book of Records for covering the longest distance on a single charge by an electric 3W, completing a 225 km journey from Bengaluru to Mysore.

GROWTH BUSINESS GREAVES FINANCE LIMITED

Business Overview

Greaves expanded into the retail financing sector through its wholly-owned subsidiary, Greaves Finance Limited (GFL), to support the adoption of E2Ws. GFL initiated its operations in 2019 to finance E2Ws and later expanded its offerings to include electric CVs (MLR and ELE). The Company initially operated as a captive financier until 2023 but strategically transitioned into a brand-agnostic EV financing platform to create a more inclusive EV ecosystem in India by starting the OEM-financier partnership with Ather in June 2023. The Company launched evfin, a dedicated EV-focussed lending platform in June 2023 to provide accessible financing solutions. By becoming a Corporate Agent (IRDAI-licensed) GFL strengthened its commitment to seamless EV ownership by partnering with ACKO in July 2024, enabling the cross-selling of insurance products to its financed customers. The Company further enhanced EV accessibility by collaborating with Bengaluru-based River Mobility in August 2024, offering River customers competitive financing options, including low-interest loans and leasing plans, to make electric scooter ownership more affordable.

GFL partnered with multiple EV OEMs to expand its reach and democratise EV financing. The Company leveraged insights from its legacy portfolio to develop evfins business model, identifying key challenges in EV financing related to sourcing, underwriting, speed, collections and relationships with OEMs, dealers, and customers. GFL built evfin as a fully digitised lending platform that enables loan approvals in under 2.5 minutes. The Company structured its platform to assess both customers and EV assets, ensuring risk mitigation and offering tailored EV financial products to support customers throughout their ownership journey.

GFL expanded evfin to 47 cities across 11 states in FY 2024-25, covering 50% of the E2W market while maintaining strong portfolio performance. GFL strengthened customer financial security by driving strong adoption of the Loan Protect insurance product, which provides protection during unforeseen events. The Company relaunched its flagship product, Smart.fin, with Ather in FY 2024-25, incorporating residual value (RV) guarantees through a strategic partnership with Eqaro Surety.

GFL continued to drive innovation by developing specialised EV financial solutions, including Smart.fin, Loan Protect insurance and the upcoming evfin Secure+, which will offer extended warranty and assistance benefits for EV owners. The Company is expanding into retail insurance by partnering with leading insurers to provide motor, health, and life insurance products. GFL also strengthened its market presence through an offline dealership model combined with an assisted digital experience, consistently ranking among the top three financiers in key dealerships. The Company secured preferred financier partnerships with leading E2W OEMs, ensuring broader market coverage.

Risks & Concerns

• The resale market for used E2Ws is underdeveloped, making residual value assessment and financing challenging

• Policy changes in government incentives like FAME I, FAME II and PM E-DRIVE impact EV demand, causing market fluctuations

• Unauthorised battery swaps in financed vehicles affect resale value and collateral security, requiring stronger asset tracking and risk management.

Outlook

GFL piloted B2B financing for electric two-wheelers beyond personal E2W financing and plans to scale this initiative strategically in FY 2025-26. The Company recognised the growing secondary EV market and launched a pre-owned EV financing pilot using repossessed vehicles to facilitate refinancing and extend EV usability. GFL intends to expand this initiative in FY 2025-26 to strengthen the resale market and further support EV adoption.

E2W adoption is increasing rapidly, with market penetration reaching approximately 6.11% in FY 2024-25. Industry sales reached to 1.15 million units in FY 2024-25 and are expected to grow further to 1.63 million units by FY 2025-26, driven by the entry of traditional ICE manufacturers into the EV segment. Leading OEMs have addressed consumer concerns about battery degradation by introducing 8-year battery warranties, which have significantly improved confidence in EV ownership. GFL plans to accelerate its expansion in FY 2025-26 by doubling its reach and providing financing support to both E2W and E3W OEMs. The Company has been developing & launching EV-first financial products tailored to address ownership challenges and enhance ev.fins competitive advantage in the market and will keep on doing so in the future.

GREAVES TECHNOLOGIES LIMITED

Business Overview

Greaves Technologies Limited (GTL), a wholly-owned subsidiary of Greaves Cotton Limited (GCL), offers engineering services to OEMs for the development and maintenance of engines, plant and machinery, and various equipment. GTL has been a leading provider of Engineering R&D (ER&D) and digital solutions, offering expertise across the entire product development lifecycle. The Company provides comprehensive services, including product design, Computer-Aided Engineering (CAE), automation, new product development, supplier development, embedded systems, and digitalisation. In FY 2024-25, the Company is projecting total revenue of Rs. 46 crore and a loss of Rs. 1.9 crore, compared to revenue of Rs. 35 crore and a loss of Rs. 1.6 crore in the previous financial year.

GTL primarily serves OEMs in the automotive and product manufacturing sectors, delivering advanced technology expertise, flexible resource support, high-quality product development, cost-effective solutions, and deep domain knowledge. The Company offers a robust service portfolio across mechanical engineering, electronics, embedded systems, and Information Technology (IT) solutions, making it a preferred technology partner for OEMs.

GTL has partnered with industry leaders like Stellantis and Daimler India Commercial Vehicles (DICV) to drive innovation and efficiency. The Company strengthened its collaboration with DICV by launching the "Variant Factory" in June 2022, delivering over 43 vehicle variants under Daimlers CVDS 4.1 process.

The Company is committed to advancing sustainable mobility, providing end-to-end support in design, virtual engineering, and AI-powered digitalisation. GTL delivers specialised engineering solutions through its CAE/Virtual Environment (VE) unit, serving the automotive, heavy equipment and agriculture sectors. The Company has also established a Centre of Excellence (COE) to provide IT services to global oil and gas clients.

GTL remains focussed on quality, efficiency, and cost-effectiveness, ensuring seamless integration and high performance. The Company continues to expand its global presence through strategic alliances, further strengthening its role in shaping the future of sustainable mobility.

Market Overview

The OEM technology services market is experiencing rapid growth, driven by advancements in digital technologies and their increasing integration into OEM products. As companies embrace Industry 4.0 and digital transformation, the role of technology in manufacturing processes is becoming more significant, enhancing operational efficiency and fostering innovation.

According to the NASSCOM-BCG report, the global ER&D market is projected to expand from approximately USD 1.5 trillion to USD 2.5-3.3 trillion by 2030, with a CAGR of 8-9% from 2023 to 2030. India is expected to contribute 22% of the global ER&D sourcing market by FY 2029-30, with its share increasing from around USD 44-45 billion in 2023 to an estimated USD 130-170 billion by 2030. Key sectors driving this growth include software, automotive and semiconductors, which are expected to account for over 60% of Indias ER&D sourcing.

The integration of digital technologies into OEM products is transforming business operations by improving productivity, reducing costs and enhancing product quality. Automation and real-time monitoring enable more efficient resource utilisation, while AI-driven predictive maintenance helps minimise unexpected failures and operational disruptions. Advanced analytics play a crucial role in maintaining consistent product quality by identifying potential defects early in the production process. Additionally, digital technologies allow OEMs to respond swiftly to market changes, facilitating faster product development and adaptation to evolving consumer demands.

As digital adoption continues to reshape the industry, it is becoming a key driver of competitiveness and efficiency. The evolving landscape of OEM manufacturing is increasingly reliant on technology to streamline operations, enhance agility and maintain high standards of innovation. This ongoing transformation will play a pivotal role in shaping the future of the OEM sector, ensuring sustained growth and technological advancement.

Risks & Concerns

As the demand for digital services from OEM players continues to grow across various domains, GTL faces several challenges in delivering these services effectively. Rapid technological advancements require frequent reskilling of resources, while significant upfront investments in tools and licenses add to operational costs. Additionally, higher resource attrition rates and the financial impact of maintaining a resource bench affect overall business margins. GTL is implementing strategic measures to enhance operational efficiency and ensure sustainable growth to address these challenges.

Outlook

GTL as an ER&D service provider has a highly optimistic business outlook driven by significant growth opportunities from OEM customers. The increasing demand for digital services in product development and the need to accelerate time-to-market to stay competitive are key factors shaping this growth. GTL is well-positioned to support OEMs in meeting these evolving industry demands.

INTERNAL CONTROL FRAMEWORK

GCL has established a structured internal control system tailored to the scale of its operations and the specific requirements of its industry. The primary goal of this system is to safeguard assets while ensuring maximum efficiency and productivity at all levels. Greaves internal control framework follows the globally recognised Committee of Sponsoring Organisations of the Treadway Commission (COSO) Internal Control-Integrated Framework (2013), ensuring compliance with international standards.

Greaves has implemented a robust financial control system to oversee financial processes across the organisation. Regular reviews are conducted, and necessary updates are made to keep the system aligned with evolving regulations and industry best practices. The internal controls are designed to enhance process efficiency and accuracy and is also enhanced by automation. We regularly undertake Automation activity, which enables confidentiality and enhances the control mechanism and reduces risk. Such enhancements are expected to strengthen process control, improve efficiency and minimise the risk of errors.

INFORMATION TECHNOLOGY (IT)

Greaves considers IT as an essential part of its growth strategy, ensuring seamless integration with business operations. GCL relies on its Enterprise Resource Planning (ERP) system to manage business processes, supported by a network of connected applications. The Company focuses on maintaining the security, stability, and scalability of its IT systems to provide efficient services to employees, customers, and vendors.

Greaves has enhanced its ERP framework by adopting the SAP-owned HANA database, improving data retrieval across applications. GCL has also upgraded its Employee Self-Service (ESS) portal to an Advanced Business Application Programming (ABAP)-based platform, enhancing performance, user experience and access to advanced features.

The Company has continued to strengthen its IT infrastructure and security to ensure uninterrupted service, including mobile access. Greaves has improved security by consolidating firewalls onto a single platform, ensuring better protection across locations. The Company has brought the new EV business design operation under the scope of PLM. These improvements align with the Companys authorisation framework, increasing productivity and reducing turnaround times.

The Company focussed on boosting efficiency by digitising workflows, automating tasks, and streamlining processes to reduce errors and enhance productivity. To improve customer experience, user-friendly web applications with enhanced User Interface (UI)/ User Experience (UX) were introduced, ensuring seamless interactions. Data-driven decision-making was supported through the use of advanced analytics and low-code/no-code BI tools for effective KPI tracking. Invoice processing was automated by integrating Machine Language (ML) and Optical Character Recognition (OCR) technology into Accounts Payable, enabling faster approvals. Data security was strengthened with Mobile Device Management (MDM), data loss prevention and network access controls. Additionally, AI and ML capabilities were expanded to enhance application performance. The Company also improved application development by adopting the Software Development Life Cycle (SDLC) methodology, ensuring better governance, flexibility, and faster deployment.

Below are some of the key digital and security initiatives undertaken by Greaves during FY 2024-25:

SUSTAINABILITY DRIVES

Greaves recognises the growing importance of sustainability for all stakeholders, including individuals, businesses and governments. GCL acknowledges its environmental impact and remains committed to continuous efforts towards a sustainable future. The Companys business model prioritises sustainable innovation, reflecting its strong dedication to sustainability.

The Company is committed to meeting present needs without compromising the ability of future generations to meet their own. The Company has implemented sustainability initiatives across three key pillars - social, environmental and governance. GCL ensures long-term sustainability by integrating these core elements while maintaining a balance between business growth and shareholder value.

ENVIRONMENT

The Company has taken following initiatives during the year FY 2024-25:

Environmental and Energy Initiatives

• Installed retrofit emission control kits for all diesel generator (DG) sets at the plant to comply with CPCBIV norms

• Implemented digital environmental monitoring boards at each plant to display real-time environmental data

• Expanded the use of treated and recycled Effluent Treatment Plant (ETP) / Sewage Treatment Plant (STP) water beyond gardening to washroom flushing and floor cleaning, ensuring efficient water usage

• Upgraded the water distribution system with electromagnetic flow meters, preventing water wastage and optimising usage

• Replaced Compact Fluorescent Lamp (CFL) lighting with LED at the Aurangabad admin building and offices, reducing energy consumption and improving illumination.

• Developed a kitchen garden within the plant premises

Renewable Energy and Sustainability

• Generated 5 million units of energy yearly through four solar rooftop installations ranging from 700kW to 1MW each at its manufacturing plants in Aurangabad and Talegaon

• Digitised Standard Operating Procedures (SOPs), checklists, and reports on the shop floor, promoting a culture of paperless operations

• Collaborated with suppliers to recycle aluminium scrap briquettes, reducing carbon emissions and energy consumption in the aluminium heating and extraction process

• Adopted cold testing for industrial engines, significantly reducing electricity and diesel consumption compared to hot testing

Efficiency and Waste Reduction

• Implemented product and process re-engineering projects on the shop floor, minimising waste and improving energy efficiency

• Generated approximately 50 lakh units of electricity through installed solar power plants, reinforcing commitment to sustainable energy solutions

• All the manufacturing sites of the Company have implemented a mechanism for Zero Liquid Discharge

SOCIAL

The Company has been certified as a "Great Place to Work" for the fourth consecutive year. In 2025, the Company was also recognised among the Top 25 Best Workplaces in Manufacturing in India. This globally recognised certification, considered the ‘Gold Standard for identifying great workplace cultures, reinforces the Companys position as an "Employer of Choice". The Company remains committed to social and environmental responsibility while promoting inclusive community development. The Company demonstrates its focus on maintaining high-quality and safety standards with certifications in ISO 9001:2015, IATF 16949, ISO 14001:2015, ISO 45001:2018, ISO 17025, and AS 9100D. Additionally, the Company has undertaken several tree plantation initiatives, contributing to green cover expansion, carbon sequestration, and improved air quality and biodiversity as a part of their social initiative.

For Financial Year 2024-25, the Company has conducted Human Rights due diligence at its plant sites to ensure proactive steps can be taken to identify and prevent potential Human Rights related issue including discrimination and harassment. This year, the Company has conducted Human Rights Assessment of approximately 50% of its suppliers by value, as a part of good corporate governance and our commitment to protection of Human Rights. Additionally, the Company has provided training on ESG & Sustainability covering NGBRC principles to approximately 40% of its Suppliers by value. Our unwavering commitment to safety for our employees and robust systems has ensured Zero Lost Time Injury Frequency Rate in FY 2024-25.

GOVERNANCE

Greaves plays a pivotal role in governance, with the Board serving as the ultimate decision-making authority. Greaves has a Board comprising qualified professionals with diverse expertise essential for the Companys effective operations. Greaves upholds ethical conduct and compliance by adhering to applicable laws, regulations and the highest business ethics standards. Greaves has a Code of Conduct that imparts transparency, honesty and accountability while providing mechanisms for addressing ethical concerns.

Core Values and Ethical Business Practices

Greaves is guided by the principles of ‘Pancha Tatva - transparency, integrity, responsibility, passion for excellence and respect - to ensure ethical business practices. Greaves has reported no instances of unfair trade practices, irresponsible advertising, or anti-competitive behaviour.

Governance Oversight and Independent Committees

Greaves strengthens governance oversight through an independent Board, a clear separation of supervisory and executive roles and Committees monitoring key areas, with all Audit, Nomination and Remuneration Committee members being non-executive.

Board Expertise and Strategic Oversight

Greaves has a Board with a diverse skill set covering Global Economics, Mergers and Acquisitions, Sales Marketing and Commercial, Business Exposure, Manufacturing, Quality and Supply Chain, Technology, Corporate Governance, Financial Expertise, ESG Proficiency, People Management, Organisation Design, Digital Transformation, Brand and Customer Relationship Management, ensuring well-rounded strategic oversight.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Greaves is dedicated to improving lives and supporting communities through its CSR initiatives, with a focus on skill development and employability enhancement. GCL aims to create a positive social impact by equipping underprivileged youth with technical skills, helping them secure jobs and support their families, thereby promoting inclusive growth.

The Company through its flagship program, DEEP (Development, Education, Empowerment and Progress), provided training and upskilling opportunities for young individuals from economically disadvantaged backgrounds. Greaves has successfully trained over 150 youths through this initiative, preparing them with essential skills for employment in the growing manufacturing sector.

Swati Project

The Company has introduced the SWATI Project as a CSR initiative in FY 2024-25, aimed at empowering young women through skill training and employment opportunities. This initiative, titled "SWATI Program - Knowledge to Shine," is designed to provide employment-linked diploma programmes in collaboration with Symbiosis University of Applied Sciences (SUAS), Indore. The two programmes are open to girls from underprivileged backgrounds who have completed 10th grade and 12th grade (Science with Mathematics) respectively. It offers two residential diploma courses: the Diploma in Manufacturing Automation (DMA), a two-year program for 12th (Science with Mathematics) pass students and the Diploma in Advanced Manufacturing Excellence (DAME), a three-year program for 10th pass students. The first batches commenced in August 2024 at SUAS Indore, enrolling 74 students -18 in DMA and 56 in DAME.

With a focus on enhancing technical skills and improving employability, the SWATI Project aims to provide structured industry-relevant education and practical training to young women, helping them build sustainable careers in the manufacturing sector. The program ensures a residential learning experience, equipping students with hands-on training and exposure to advanced manufacturing technologies. By facilitating access to quality education and skill development, the Company is promoting financial independence and self-reliance among women from marginalised communities, reinforcing its commitment to social responsibility and inclusive growth.

HUMAN RESOURCES

Greaves recognises employees as the cornerstone of its success and remains dedicated to promoting a supportive, inclusive and growth-oriented workplace. The Company actively invests in equipping its workforce with future-ready skills, ensuring seamless adoption of emerging technologies. The leadership within the organisation cultivates an environment where employees feel valued, respected and empowered to contribute meaningfully.

Employees demonstrating exceptional performance are recognised and rewarded under the Pancha Tatva values, while high-potential individuals receive targeted development opportunities to accelerate their growth. The Company continues to invest in forward-looking training programmes to build a resilient and future-ready workforce. GCL remained dedicated to imparting an inclusive and dynamic workplace, sustaining a diverse workforce of 1,079 individuals that contributed to its strategic growth across business verticals as of 31st March 2025. Greaves has been recognised as a "Great Place to Work" for four consecutive years, reaffirming its commitment to promoting a positive work environment. Greaves has also been ranked among the "Top 25 Indias Best Workplaces in Manufacturing," highlighting its dedication to employee well-being and organisational excellence.

Employee Wellness

GCL implemented comprehensive wellness and engagement initiatives, offering expert-led webinars and interactive sessions on Digital Detox, Gut Health, Anger Management, International Yoga Day, Family Relations, Osteoporosis Awareness, Growth Mindset and Emotional Intelligence. These initiatives aimed to enhance both physical and mental well-being. GCL introduced a 24-hour doctor consultation service, reinforcing its commitment to holistic well-being to ensure accessible healthcare for employees and their families,

Empowering Workforce Through Learning and Innovation

GCL remained dedicated to encouraging a culture of learning, innovation, and engagement. The Company continued to empower its workforce, strengthen employee engagement and build a resilient, future-ready organisation. Focussed training initiatives, leadership development programmes and upskilling opportunities were also introduced to ensure employees remained adaptable to evolving industry demands. Additionally, the Company encouraged a growth mindset, imparting a collaborative and high-performance work environment.

SAMVAAD - Monthly Engagement & Development Dialogue

SAMVAAD is a structured monthly initiative designed to support open communication, strengthen HR connections and proactively address employee concerns. Through a series of informal discussions and HR-led sessions, the initiative encourages collaboration, supports career growth, and facilitates upskilling opportunities for employees. SAMVAAD enhances overall workplace engagement and satisfaction by prioritising transparency and inclusivity. The insights and improvements driven by this initiative have contributed to higher Great Place to Work survey scores in both 2023 and 2024, reflecting a more empowered and engaged workforce.

Greaves Engineering Aurangabad Wins Safe-Tech Award 2024

In September 2024, Greaves Engineering Aurangabad LEU I facility received the prestigious Safe-Tech Award 2024 in the Medical & Health Care at Workplace category. This recognition highlights the Companys commitment to employee health and safety through advanced safety practices, healthcare initiatives and a strong workplace wellness culture. The award reflects the Companys dedication to integrating technology with safety protocols, setting a benchmark for industry excellence.

Greaves Family Day: A Celebration of Togetherness

Greaves celebrated Family Day in Pune on 5th April 2024, and then in Aurangabad manufacturing facility on 7th March 2025, bringing employees and their families together for an evening of joy and camaraderie. Both the events featured cultural performances, engaging games for children and interactive activities such as Mehndi, a nail artist, a selfie zone and a 360-degree video reel platform. Major highlights included energetic dance performances, melodious singing and impressive karate displays by young talents. With entertainment, games and delicious treats, both Pune & Aurangabad Family Day celebrations strengthened bonds and showcased the true spirit of the Greaves family.

The Development, Education, Empowerment and Progress

DEEP Initiative

Greaves continued to uplift communities through its CSR program, DEEP, which was focussed on skill development and employment for disadvantaged youth. In partnership with National Employability Enhancement Mission (NEEM) and Yuvashakti Foundation, DEEP offered vocational training at Greaves Aurangabad facilities, blending classroom learning with hands-on experience. As of 31st March 2025, 157 youths, including over 45 girls, had been skilled for future employment opportunities in manufacturing sector.

Prevention of Sexual Harassment (POSH) Initiative

Greaves Engineering Aurangabad conducted POSH training for employees, contract labour and trainees to promote a safe workplace. The Company also marked the 53rd National Safety Week in March 2024 with awareness campaigns, competitions, and a blood donation drive, collecting 115 units. Over 300 employees participated, reinforcing Greaves commitment to safety and well-being.

Empowering Growth Through Learning, Safety and Recognition

Greaves prioritised learning with 16,208 training hours, a 79% participation rate and a Net Promoter Score of 8.85/10, focussing on future skills, leadership and behaviour. Initiatives like Pragati, Campus to Corporate and the Skillverse framework supported employee growth. Greaves has further enhanced employee engagement through safety training programmes, the implementation of the Shabash Initiative and the organisation of inclusive celebrations that promote a culture of recognition and belonging.