Greaves Cotton Ltd Management Discussions.


Global Economy

The year 2020 was a challenging period with lockdowns in most global economies posing a threat of deep recession. Most governments helped to maintain disposable income for households, protect cash flow for firms, and support credit provision. Sizeable, swift, and unprecedented fiscal, monetary, and regulatory responses were initiated. The global contraction for 2020 is estimated at 3.3% with some signs of economic recovery in China and some large advanced economies.

The softening in early 2021 is expected to give way to rising momentum in the latter half of the year as vaccines and therapies become more readily available. Additional policy support in few large economies have raised hopes of a turnaround with growth expectations of 6% in 2021, moderating to 4.4% in 2022. Sizable fiscal support has been announced in some countries, including the united States and Japan. Together with the unlocking of Next Generation Eu funds, recovery of economic activity among advanced economies is expected with favourable spillovers to trading partners.

Source: IMF World Economic Outlook, April 2021 Indian Economy

post covID-19 outbreak, India was amongst the first few countries that went into a nationwide lockdown. Mobility restrictions and social distancing caused supply-chain disruptions and consumer demand fallout. Later, as the economy unlocked in phases, mobility of goods eased supply-side pressures. This is also reflected in the industrial activity pick-up in H2 FY 2020-21. Stronger passenger vehicle sales, rising finished steel production and diesel consumption, higher goods and services tax revenue collections followed. Improvement in the availability of finance from banks, pent-up demand and festivities added to buoyancy in economic activity.

The second advance estimates of national Income for FY 2020-21 by the national Statistics office indicate real GDp contraction at 8% for FY 2020-21, distorted on account of significant growth of subsidies. The recovery in economic activity and improved investor sentiments are a result of impactful reforms undertaken by the government since March 2020. Several investment initiatives were announced like the national Infrastructure pipeline (NIp), demand-driven capex, and the centres production-Linked Incentive (pLI) scheme.

Indias GDp growth is likely to rebound sharply to 12.6% in FY 2021-22 as per organisation for economic co-operation and Development


With over 16 decades of extraordinary legacy and brand trust, greaves cotton limited (hereinafter referred to as greaves) is a diversified engineering company and a leading manufacturer of Cleantech powertrain Solutions (CNG, petrol and Diesel Engines), Generator sets, Farm equipment, E-Mobility, Aftermarket spares and services. Greaves cotton is a multi-product and multi-location company with a rich legacy and brand trust of over 162 years and has established itself as a key player impacting a billion lives every day.

the company today manufactures world-class products and solutions under various business units and is backed by comprehensive support from 500+ Greaves Retail Centres & 6,300+ smaller spare parts retail outlets across the country.

In the mobility segment, the Company provides low TCO mobility solutions to the majority of the population in India, moving more than 1 crore passengers and 5 lakh tonnes of cargo every day. Greaves cotton augmented its clean technology portfolio in the last-mile affordable 2W personal mobility segment with Ampere vehicles in 2018.

Collaboration and holistic approach have been in the DNA of the companys growth. the company works in a way that is beneficial to all stakeholders - B2C segment, B2B segment suppliers, shareholders, and communities at large. The goal is to go beyond enhancing the balance sheet size by creating a positive impact on people and environment. The Company provides financial independence and employment thereby supporting several lives.

Greaves cotton also plays a critical role in aiding growth of core sectors of the economy. Its presence in multiple sectors and varied range of superior quality affordable products lead to cascading benefits in many allied sectors.

More to Life

greaves cotton has a well-diversified portfolio including engines, generator sets, agricultural equipment, marine equipment and e-mobility products and solutions. As these sectors directly influence GDp growth, the company is involved in nation-building. Its reliable and affordable solutions enrich life by enabling higher productivity and savings and lowering emissions.

The Company is also conscious of its role towards society and always works in that direction. It seeks to benefit all stakeholders - customers, vendors, agency partners, dealers, suppliers, distributors, retailers, employees, shareholders, and society at large. This is well-reflected in the companys actions towards creating employment and business opportunities and its responsibility towards the environment with emphasis on e-mobility, fuel-efficient engines, safe disposal of waste, etc.


The Company has grown from strength to strength in the last five years by expanding its presence to varied sectors, designing high quality affordable products compliant to applicable norms, expanding its distribution network, and adapting with changing times.

During FY 2020-21, the company continued to achieve greater heights despite several hurdles created by the covID-19 pandemic.


The financial year under review had a significant impact on business due to covID-19-led lockdowns. In FY 2020-21, the company reported consolidated revenue of Rs 1,500.40 crore versus Rs 1,910.96 crore in FY 2019-20. Loss after taxes stood at Rs 18.78 crore in FY 2020-21, against profit after tax of Rs 127.27 crore in FY 2019-20. The loss was on account of revenue de-growth due to covID impact and certain exceptional items. In the year under review, there were exceptional expenses of Rs 34.46 crore as against exception income of Rs 4.71 crore in FY 2019-20. Exceptional expenses were mainly due to structural changes which will have long-term reduction in the fixed overheads of the company. As part of Greaves diversification strategy, new business initiatives contributed 30% of the total standalone revenue for FY 2020-21.


Automotive Business (Automotive engine and Aftermarket)

Industry overview

Mobility is essential to economic and social development. It enables people to access goods, services, and information, as well as jobs, markets, family, and friends. Modes of transport like 2-wheelers (2W), 3-wheelers (3W) and commercial 4-wheelers (4W) are the backbone of economic development. The automotive engines industry not only aids in commute to work but also provides work. It also encourages demand creation in several ancillary sectors. The industry is thus an indirect enabler of economic development. Significant last-mile transportation depends on diesel-powered engines. Being highly efficient, reliable, durable, and low maintenance, these engines are highly popular.

Greaves cotton plays a key role in last-mile transportation in India. The company has re-imagined the last-mile mobility landscape with clean technology range of fuel-agnostic powertrain solutions.

FY 2020-21 witnessed significant slowdown in 3W industry. covID-19 related lockdown/restricted movements dampened shared mobility. Additionally, with academic institutions and offices remaining shut, 3W passenger market took a severe hit. Moreover, rising fuel costs increased the disparity between diesel and compressed Natural gas (cNG)/ Liquefied petroleum gas (lpG) vehicles. This increased cost of ownership along with non-availability of finance impacted the sales of 3W diesel vehicles.

Bharat Stage (BS)-vI came into effect from April 1, 2020. Greaves cotton remained a step ahead of the stringent industrial and regulatory compliance norms. In December 2019, it launched the worlds cleanest single-cylinder BS-vi diesel engine for 3-wheelers. The engine is a technical genius of in-house R&D and technical expertise.

In the Union Budget 2021-22, the Government announced increasing cNG connectivity with 100 additional districts over the next three years. This is likely to popularise cNG engine vehicles. Additionally, electric vehicle (EV) manufacturers are entering into tie-ups with institutional customers to convert their logistic fleet to Ev. With these factors benefiting the diesel cargo vehicle sales, Greaves Cotton is expected to be a beneficiary.

Business Overview

Automotive engines across fuel range are manufactured by Greaves Cotton. Mobility in India moved to BS-VI since April 2020. In accordance, the company started supplying BS-vi engines to its OEM customers. The BS-VI engines have shown superior performance and have been well-accepted in the cargo 3W segment. The newly-launched BS-VI diesel engine is built for affordable 3-wheeler application, providing better performance, and ensuring significant pollutant reduction. The highlight of this engine is its lower total cost of ownership (TCO) and fuel efficiency.

The automotive engine market is slowly recovering with OEM confidence signalling positive growth. The Company established strategic acquisition of new OEM customers in both domestic and international markets.

Risks & Concerns

• Threat of spike in COVID-19 cases impacting sale of 2W, 3W and passenger 4W due to restricted movements

• post FY 2022-23, unprecedented rise in 3W Ev launches Aftermarket

Greaves cotton has been providing timely and trustworthy aftermarket service for years. The company has been at the forefront of introducing new technology spare parts for 2W and 3W vehicles. It has an extensive distribution network spread across the length and breadth of the country.

During FY 2020-21, it further improved the reach of the products and services. The company also undertook several major initiatives to educate and train mechanics on BS-vi engine technologies. This strengthened the brand equity and has helped to curb the unorganised/spurious trade.

Greaves Multi-Brand Business

Greaves Cotton is a well-known player in multi-brand spare parts business. To fortify its image as a "total solution provider", it has been consistently making attractive brand offerings. The Company has strengthened its 2W multi-brand portfolio to offer a wider range of products and also expanded network to ensure better reach to the end customer.

Market Overview

COVID-19 lockdown and subsequent restricted movements resulted in drastic reduction in shared mobility. This impacted aftermarket replacement cycle and thereby consumption of parts. As per internal estimates, demand contraction was around 25%-30% overall for 3W business.

The retail business worked under stringent liquidity conditions for best part of the year putting risk of business continuity with channel partners. With un-lockdown efforts and aided largely by improvement in cargo vehicle movements, business recovered to 60%-65% of previous year level during Q3. It further improved to 80%-85% in Q4 in view of increased passenger movements and market inventory corrections.

Risks and Concerns

• Diesel parts segment growth to continue albeit at lower rate

• Lower kilometres travelled by vehicles and resultant lower repair cycles impacting demand - in view of COVID-19 resurgence

• Increased prevalence of breakdown repairs and reduced preventive maintenance spends - due to business uncertainties

• Lower ability to attract new channel partners in subdued business conditions


The company is initiating several promotional efforts to strengthen connect with mechanics. These mechanic loyalty rewards and CRM-related engagements would help to improve wallet share. The company intends to largely offset the impact of COVID resurgence by further expanding its distribution network in identified markets. It envisages higher growth prospects in multi-brand spares business in line with planned promotional activities.

Non-Automotive Engines

Greaves has a significant presence in non-automotive sectors like agriculture, construction, marine industries, gardening, micro-irrigation, railways, and defence. The range of non-automotive engines used in these industries are fuel-efficient, compact, and versatile. The company offers a range of these products in overseas markets including the Indian subcontinent, South-East Asia, Africa, Middle East, and Europe. The Company aims to create a positive change and meaningful difference to lives of people. In this direction, it recently launched greaves Business Accelerator program. This is a unique drive to encourage businesses globally to accelerate their business with specially-crafted engines for their specific needs.

Based on the concept of "one engine, many applications", the Non-Automotive Small Engines (NASE) are effective tools enabling many small businesses to grow and thrive. Highly qualified team of trained technicians and application engineers extend customer support. The products are of superior quality and are packaged with great service and commitment of original spare parts availability. To increase pace of business growth, the company has tied up with small and micro-entrepreneurs and equipment manufacturers in India and abroad.

Depending on usage and horsepower, the range is further segmented into three categories:

a) Auxiliary power

b) Farm equipment

c) Industrial engines

a) Auxiliary power Business Industry Overview

The COVID-19 pandemic dampened overall economic activity in FY 2020-21. The Government increased healthcare sector disproportionately at the cost of real estate, infrastructure, railways, and other industrial sectors. Labour-intensive sectors faced stalled site activities for months due to migrant labour leaving for hometowns. consequently, the demand for gensets was severely impacted during the first half of the fiscal year. Private sector purchase decisions came to a standstill due to business uncertainty.

Amidst the grave challenges posed by COVID-19 pandemic, Greaves Cotton initiated several steps to support communities and fight against the virus. The company powered critical missions to backing up critical life support systems with its gensets. Greaves cotton installed Gensets in hospitals for quarantine facilities to provide 24x7 power supply and ease work for covID warriors. Gensets were supplied to the hospitals across Maharashtra, Gujarat, Haryana, Madhya Pradesh, etc.

Post Q3 FY 2020-21, the suppressed demand slowly started to release and picked pace. Finally, in the last quarter, demand for gensets witnessed significant increase.

Several states pollution boards made it mandatory to fit pollution reduction device on gensets. This made the purchasers apprehensive leading to delay in decisions and delivery of gensets. The National Green Tribunals ban in Delhi NCR from October 2020 to March 2021 also affected genset sales in these areas. Further, the launch of gas/hybrid fuels gensets in lower range by competition also gave customers more options in gensets banned areas.

Data center business has seen rapid growth in India due to increased use of IT and Government push to store data. This has led to increase in the number of offices and thereby a spurt in demand for power back-up facilities. This is in turn driving the demand for high rating gensets.

The customer buying behaviour has undergone significant change due to covID-19. customers prefer single or no personal meetings at all as opposed to many meetings earlier. Decisions are at times made over telephonic discussions or on virtual meeting platforms. There is increased use of technology in product promotion and purchase process as increased prevalence of work-from-home has led to reduced investment by large organisations in power back-up facilities.

Business Overview

Greaves cotton offers the most comprehensive range of gensets meeting the demand of multiple sectors. These cpcB-II compliant gensets are compact, reliable, and efficient leading to a low Tco. The company also offers reliable after-sales service.

the company launched the genius range of smart gensets, available in the range 5 kvA - 2500 kvA. The entire range is enabled with Remote Monitoring System (RMS) to get all critical gensets data on mobile/laptop via an app. The app prompts for upcoming maintenance and in case of faults. This enables timely service and proactive handling of complaints to reduce the genset downtime and ensure maximum possible uptime. It also tracks genset location,

fuel pilferage and fuel consumption on real-time. This results in uninterrupted operations and low Tco for the customer, making it in an unmatched offering in the genset industry in India. greaves cotton is also the first and only company to offer 5-year warranty on complete genset without any extra cost across the range 10 kvA- 500 kvA.

Enhancement of the companys gensets range to 2500 kvA has given the customer the advantage of using the same brand of gensets and deal with a single manufacturer. customers get updates on the genset condition, follow-ups on service and reduced downtime. These unique offerings have increased the confidence of customers on the companys products and brand.

The Company updated the Greaves 1 App to upgrade customer, dealer, and dealer technician interfaces. This enables them to conduct pre-emptive maintenance. This results in enhancing the longevity of the genset, reduced MTTR (Mean Time to Restore) and increased uptime of the genset.

Risk and Concerns

• cost competitive solutions meeting cpcB Iv+ norms

• States pollution Boards have still not withdrawn the mandatory fitment of device

• gas/hybrid fuel gensets and renewable sources of energy are expected to increase in future


Greaves Cotton is working on existing portfolio upgradation to CPCB IV and new product launch to comply with new emission standards. The Company is moving towards directly serving consumer segment with rental/pay per use service model. The company expects its strong institutional business to help mitigate economy slowdown factors. greaves cotton is building IT-enabled systems for improving its sales and customer relations and tapping market intelligence on a regular basis. Further, an effort to offer best-in-class service standards is expected to support the company to leverage on industry growth.

b) Farm Equipment Business Industry Overview

The economy came to a standstill in Q1 FY 2020-21. State governments diverted agriculture subsidy scheme funds towards covID-19 control related expenses. Marginal farmers, the major buyers of small farm equipment, were forced to put their purchase decisions on hold due to lack of institutional financial support.

However, amidst this challenging time for the economy, agriculture emerged as the sole saviour. While GDp declined 23.9% in Q1 FY 2020-21, the agriculture sector grew 3.4%. good monsoon benefiting rabi crops, also aided agricultural growth. The government helped farmers by providing Rs 6,000 per annum in three instalments as pradhan Mantri Kisan Samman Nidhi. The government also opened agriculture machine shops to support farmers.

(Source: National Statistics Office, India)

With large migrant population coming back to villages, agriculture became an important source of livelihood. This resulted in increased demand for tractors used in agricultural and for on-road usage. Banks provided tractor finance boosting tractor sales to an all-time high in FY 2020-21.

Several government policies work in favour of farm equipment manufacturing like:

• Make in India encouraging domestic manufacturing of agricultural machinery and equipment

• urja Data yojna enabling farmers to sell additional electricity generated from solar pump to grid

• Kisan udan yojna helping farmers to transport agri-perishable commodities through railway wagons

• Many State governments giving subsidised farm equipment to Women Self Help groups, increasing demand for small agricultural equipment as well as household equipment such as mini dal mill, rice mill (engine/electric) etc.

Mechanisation in farming is also aided by controlled usage of fertilisers and chemicals. However, increase in commodity price influenced the farm equipment price upward, and coupled with increased fuel prices, may have a bearing on agriculture/irrigation. Impact of ongoing farmers protests against the new farm bills also needs to be closely monitored.

Business Overview

greaves cotton is involved in the business of providing farm mechanisation solutions to small and marginal farmers. With a product portfolio for every stage of crop cycle, from tillage to harvesting, greaves cotton has evolved as a farmer-friendly farm equipment brand.

During the lockdown period, the Company focussed its efforts on R&D. New project development was undertaken considering shift in usage condition and the futuristic challenges of the farmers. The goal is to help farmers in saving time and money and bring happiness to the farming community.

During H1 FY 2020-21, Greaves oHv pumps were launched enabling farmers to save money and time with fuel-efficient technology.

Risk and Concerns

The company has initiated the process to increase revenue from non-subsidy products. However, shifting from subsidised products to non-subsidised products is a gradual process. It is beneficial to the company in the longer run from all aspects of price, quality, reliability, productivity, and aftersales support.


central and State governments are focussing to improve farmers income through various budgetary allocations and ground-level schemes. This is expected to improve livelihood

and purchasing power of small and marginal farmers. To finish work in time and avoid vagaries of labour. Farmers will be inclined towards mechanisation, which bodes well for greaves cottons farm equipment sales.

greaves cotton is working on the introduction of cost-competitive and affordable solutions, the company is also planning to create a network in rural pockets for new products. The network will also seek to provide customer service to farmers at their doorsteps, helping farmers save time. The oEM base in Eu region is estimated to take a leap in most of the agro economies in the region as preference is given to machine over physical labour.

c) Industrial Engines Industry Overview

The industrial engines industry has been severely affected due to covID-19, especially in H1 FY 2020-21. Steep rise in raw material cost, especially witnessed in the last quarter, has also hit the industry. Further, the slowdown in real-estate and construction segments, which are the major growth drivers, affected the industry in an adverse way.

Driven by Atmanirbhar Bharat push, there has been traction in market from agriculture and defence segments. Farm machineries especially tractor segment has seen an all-time high in FY 2020-21. Anti-china sentiment has also helped local manufacturers especially in the agriculture segment to explore new business possibilities.

Initiatives for Sagarmala and Inland waterways schemes is now taking shape with business opportunities. In H2 FY 2020-21, there has been significant improvement in market and economic recovery.

Business Overview

In keeping with the philosophy of "one engine, many applications", the Company has a comprehensive unique portfolio of diesel engines (1.5-700 hp) for various applications and segments. Greaves has engines with all possible fuel options covering diesel, gasoline, cNG etc. The engines are designed to meet relevant emission norms for automotive, genset, tractor, marine and many more segments.

In FY 2021 Non-automotive Small Engines business recorded its highest ever revenue growth. greaves is extending its footprint in marine large fishing trawler business with greaves multicylinder platform.

We have been able to engage international oEMs for our FM/uL approved engines. We have also observed steep demand of these engines from domestic markets.

FY 2021 was a challenging year for international business based on several global as well as local restrictions in the flow of funds, movement of goods, logistics etc. Amidst these global challenges, greaves cotton continued to focus on developing new oEMs and dealers in eu, Africa and Middle East region. The Company was successful in procuring oEM business of mid-range engines

in Fire-fighting application from Middle East oEMs. The Eu team could successfully position small diesel engines in Turkey and Italy-based oEMs. This business has potential for future growth with other oEMs in agro industrial/industrial segment. The breakthrough orders from Fire Fighting pump oEMs based at Middle East also marked the entry to select African markets with the oEM end products.

New tie-up in construction business paved way for executing a high value asphalt batching plant in

Mauritius. Bangladesh sales continued to be dominated by the construction machinery to support the countrys infrastructure development.

Risk and Concerns

• persisting covID-19 infections to adversely impact domestic and global market sentiment

• Stricter emission norms for small machineries in future may impact viability of machine cost versus returns

• Shift of business to electric motor or gasoline engines from diesel engines

• Higher powered engine demand for tractor and marine segment


greaves cotton with its wide range of engines 1.5-700 Hp is helping farmers and fishermen from marginal segment to large and multinational corporates. These people power their machines towards mechanisation of agriculture, marine, pump and construction segments. India still a developing economy with huge potential in these segments. Many domestic and international oEMs acquisition for FM/uL and single cylinder engines would help establish India as a strong supply partner for global companies. This is expected to drive sustained demand for the companys industrial engine solutions.

While disruption in ease of doing business will continue, the company expects a continued demand for Telecom and Infrastructure. Slowdown is likely in the commercial space based on the sluggishness in most of the economies across the world.

Electric Mobility

India has witnessed a substantial rise in last-mile delivery 2W and 3W vehicles on account of growing online retail platforms, especially during the pandemic. This has led to increase in carbon emissions.

Apart from being environmentally-friendly electric vehicles also offer benefits like minimal fuel consumption leading to reduction in operating costs, convenience and low maintenance.

An important part of the companys B2c and clean technology play is the e-mobility business under Ampere which has two businesses:

• Electric 2W under the Ampere brand

• electric 3W under the ELE brand, acquired through Bestway in Q1 FY 2020-21

The Company also sells e-rickshaws through its Greaves Retail outlets. The Company is promoting use of EVs via its eco-friendly j campaign, Kal Ko Bachao. The campaign promotes better health, higher saving and better environment today, to create a stronger future.

Ampere has built a very strong portfolio of B2B customers. Ampere vehicles are powering people mobility as well as e-commerce delivery for large customers like Bounce, eBikeGo, Amazon, Big Basket, Dominos, Reliance Retails amongst a lot of others.

government policies like Faster Adoption and Manufacturing of (Hybrid &) electric vehicles in India (Fame India) Scheme, scrappage policy of vehicles and push for electric vehicles, works in favour of overall E-mobility space.

Business Overview

The companys e-mobility solutions have been designed based on customer needs. These solutions have applications across segments, including:

• Everyday personal mobility

• B2B commercial and passenger mobility

By establishing a fast-growing presence in electric mobility, the company is ensuring that it remains future-ready to meet evolving consumer preferences.

a) Electric 2-wheelers (Ampere)

Ampere Electric Scooters is a leading 2W brand in the EV space in India. It is making huge strides in accelerating the

countrys switch to cleaner and greener mobility. Ampere is one of the fastest growing electric 2W companies in India. Ampere has a 320+ dealer network spreading across the length and breadth of the country. To accelerate Ev adoption, Ampere has opened more than 80 dealerships post unlocking of the economy. It is also supported by a robust service network that includes a multilingual call-centre for uninterrupted service.

Ampere is the first 2W company to have a virtual launch of its high-speed electric scooter, complete with a virtual reality (vR) experience for customers to enjoy from the safety of their homes.

The company believes in decarbonising last-mile transport by using responsible technology-based products and solutions. The company follows the zero-emission mantra. Since its inception, 12 years ago, Ampere has saved over 125 lakh litres of petrol. Ampere scooters cost less than 15 paise/km leading to incredible savings. The companys customer base is 80,000+ and steadily growing owing to such profitable offerings.

Ampere is dedicated to the concepts of Make in India and Atmanirbhar Bharat. Its state-of-the-art manufacturing facilities have created employment opportunities for thousands of people. The coimbatore facility has 35%+ of its workforce comprising women, a trend-setting feature for the automobile industry.

Ampere has seen continuous growth for both its registered and non-registered electric scooters in urban and rural areas. The demand from smaller towns and cities have been higher due to affordability and strong local after-sales service outlets. Due to their superior ride and build quality, Ampere e-scooters have gained widespread acceptance in the B2B segment as well.

b) E-Rickshaw (ELE)

During the year, Ampere (a wholly-owned subsidiary of Greaves cotton) acquired 74% stake in Bestway a very strong 3W Ev player selling E-Rickshaws under the ELE brand. ELE is born to transform the way in which India moves on last-mile. It is designed to uplift thousands of cycle rickshaw drivers with superior motorised solutions and provides dignified employment to unemployed youths. ELE is becoming

a partner in progress to thousands of businesses who seek dependable passenger and cargo vehicles for their uninterrupted delivery operations.

The brand has strong equity in several parts of the country. ELE offers a wide range of products in E-rickshaw and cargo to suit the customisable needs of B2B players, retail businesses and individual buyers as well. It perfectly resonates the spirit of clean and affordable mobility as an e-mobility subsidiary of Ampere Electric, backed by greaves cotton.

Risk and Concerns

• Low entry barrier with multiple unorganised players providing cheap chinese substitutes making it a highly commoditised market

• Ev charging infrastructure solutions required for long duration multi-frequency electric 3W operations

• Heavily compromised QRD parameters


The world is shifting towards smart, clean, affordable and dependable solutions in every sector. Inclination towards Ev is increasing, as every big/small brand is looking to launch vehicles in electric category. government regulations like replacement and scrappage policy of old vehicles is also acting as an enabler for Ev interest.

currently, unorganised players dominate the Ev 3W space. A potential shift of the customers to buy electric rickshaws and cargo from the organised sector is highlighted in various market research.

Greaves Retail (3S Outlets)

Greaves Care is a one-stop shop for customers needs in the mobility ecosystem. It is the only organised setup to provide Sales, Service and Spares (3S) solutions for 3W. A sought-after sales solution provider, greaves care is positioned between expensive authorised oEM centres and unorganised local service providers. greaves care offers genuine parts and is manned by company-trained technicians, with established processes in place.

greaves care in true sense is a mobility enabler catering to complete spares and service needs of last-mile connectivity vehicles. With a robust pan-India network, the company has created the multi-brand service and spares ecosystem support for uninterrupted mobility. This enables the company to nurture long-lasting, customer relationships with strong aftermarket sales support.

greaves care is a steadily growing business since its inception. In FY 2020-21 it registered 36%+ growth despite lockdown and restricted movements in the first half of the fiscal. customer retention has been a major contributing factor for the growth. The company works on customer feedback and is committed to improve service quality, cost (value for money) and delivery. greaves care constantly undertakes customer-centric initiatives through a dedicated call centre. With 61 new touchpoints added in FY 2020-21, including the addition of 3S Ev portfolio, Greaves Cares network is growing steadily.

greaves care, a promising business model for its channel partners, is a result of several key initiatives taken by the company including:

• Marketing programmes

• Dedicated call centre

• Widespread trained field managers to support customers and channel partners business needs

• ensuring continuous focus on channel partners


New Initiatives

• More products for service and vehicle sales, Ev segment, Ev care for electric 2W and electric 3W, and enhanced multi-brand spares coverage for ice

• Expanded footprint in three more states

• Hands-on training on BS-vi to mechanics

• Exploring retrofit from icE to Ev

Greaves Finance Business Overview

The Company has always been committed to strengthen its presence in the electric mobility space. Greaves Cotton thus forayed into Retail financing business in H2 FY 2019-20, through its wholly-owned subsidiary greaves Leasing Finance Ltd (greaves Finance). In the absence of its own independent Retail Financing operations set-up, greaves Finance leveraged its partnership with WheelsEMI, a NBFc-focussed and specialised in 2W financing business.

The Retail Financing business that began in FY 2019-20, has been striving to support e-mobility business in all its strategic plans. greaves Finance has now expanded into towns beyond Tier II cities in Tamil Nadu, Kerala in the South and Haryana, uttar pradesh, West Bengal in the north and north East. The business grew in a short span to achieve the milestone in retail financing portfolio in FY 2020-21. This makes greaves cotton amongst the first few in the Ev financing industry to accomplish this feat. The Company is also amongst the select few to finance both high speed and low speed electric 2Ws at retail dealerships.

one of the biggest hallmarks of this business has been to serve the hinterland of India. This is being driven through robust back-end credit operations, quick credit processing and technology-led processes for assessment, attractive pricing and further followed by tight portfolio monitoring mechanisms and risk-mitigation

initiatives. In addition to retail financing, the company has also signed up a few customers in the last-mile delivery/aggregation services in logistics - which it serves under multiple models such as capital lease, operating lease, etc.

In Q4 FY 2020-21, greaves Finance also commenced financing for purchase of electric 3Ws (e-rickshaws to start with) at the dealerships in Bihar, Uttar Pradesh, Madhya Pradesh and Assam. Besides playing a role in accelerating the countrys transition into clean mobility, this also significantly enables financial inclusion by catering to the customers at the Bottom of the Pyramid.

Risk and Concerns

• Electric 2Ws and 3Ws are both still in the early stages of industry evolution, with inadequate depth in the second-hand market for these vehicles

• Purchase of electric 3Ws is totally dependent on retail financing

• Large part of the demand for financing is still derived from the customers in the remote geographies


The electric 2W retail financing business is closer to attaining stabilisation. greaves Finance is positioning itself to become the long-term captive financing arm of greaves Cotton, with its own independent operations and differentiated offerings in EV financing.


The internal control systems are designed to safeguard the Companys assets and ensure efficient productivity at all levels. The systems are adequate for the size of business and industry in which it operates. The internal control systems and benchmarks comply with globally accepted framework as issued by the committee of Sponsoring organisations of the Treadway commission (coSo) Internal control - Integrated Framework (2013). periodic review of the internal control systems ensures modifications are incorporated with ever-changing norms. The internal controls are designed to ensure:

• Effective and efficient operational performance

• Adequate safety of all assets

• Timely detection and prevention of frauds and errors

• completion and accuracy of accounting across all businesses

• Timely and reliable financial performance

the company conducts its internal audit through a reputed audit firm that regularly monitors the operations. The observations and recommendations of the audit firm are discussed with the Management. the internal audit team independently reviews and strengthens the control measures. the company also gives strong emphasis to environmental protection measures.

The company also follows required Sops, policies, and guidelines. It monitors all procedures and undertakes self-assessment exercises regularly. The code of conduct is expected to be adhered to by all employees at all times. Any misconduct, unethical behaviour, or any behaviour with possibility of conflict of interest is immediately brought to notice with a well-defined whistle blower policy in place. the company encourages strict adherence to integrity and transparency by a self-monitoring mechanism.

All key controls were adequately tested during the year under review. In cases of deviation from normal, appropriate measures were initiated. The effectiveness of the internal control systems is monitored and controlled by the Internal Auditors and corporate Assurance Department. periodic follow-up on implementation of improvements and suggested corrective actions is ensured by the corporate Assurance Department, which also ensures that applicable laws and statutory requirements are met with.


Dynamic Information Technology (IT) is an integral part of the organisations operations. All processes are automated and digitally-controlled. Wireless connectivity and the augmentation of machines allows efficient capacity utilisation. Several checks are in place with internal approvals-based control on workflows.

Digital workflows have become an essential part of modern day workplace due to increased prevalence of work from home and people constantly being on the move. Superior IT capabilities have enabled the company to provide employees with digital access even on mobile platforms. Seamless workflow could be ensured amidst lockdown and restrictive movements of the people during the current financial owing to robust IT infrastructure.

enhancement in IT capabilities not only provides security and centralised document storage but also enhances user convenience. The digitised systems are easy to access and use across industries and countries. It enables paperless work, advanced workflow tracking and seamless customer experience.


Sustainability is not a luxury; it is the way of life, as human kind has destroyed the planet earth and its resources for a long time now. It is the need of the hour if future generations want to see a future on the planet safely. Addressing sustainability across all industries is a worldwide priority as the world is in the midst of a global climate crisis - one that is impossible to ignore. Greaves Cottons approach towards sustainability is proactive. The Company is taking some key activities to reduce its dependency on energy and to minimise it:

Solar rooftop panel

The Company has installed solar rooftop panel at two plants in Aurangabad - Chikalthana and Shendra. This conscious sustainability measure enables the Company to save electricity and secure resource optimisation. The Company has generated more than 1.6 million units in each of these plants in the year under review.

Water conservation

The Company is committed to conserve water through its rainwater harvesting project and recently introduced rainwater conservation scheme. Two lakes have been constructed on the premises of the Aurangabad plant. Rainwater is to be collected in these two lakes, with a capacity of 35 lakh litres and 14 lakh litres.

Tree plantation

The Company is working to build dense, native forests within a short span by adopting a Japanese method of tree plantation. Using Miyawaki method of tree plantation, the Company has achieved restoration of natural vegetation on degraded land at the Aurangabad site. The method also helps saplings grow 10 times faster and the forest become 30 times denser. The Company also carries out tree plantation drives in the vicinity of its production units.

There has been a substantial impact of Tree plantation:

• Reduced carbon footprint with better carbon dioxide absorption capacity of the Miyawaki forest

• Increased greener surface area

• Better noise and dust reduction ability of the forest

Greaves Cotton is creating positive impact on the environment even through normal course of business:

• Ampere electric scooters serve almost 80,000+ customers. Each scooter can save carbon dioxide emission equivalent of growing 12 trees

• ELE electric rickshaw and cargo solutions serve almost 10,000+ customers on the road. These vehicles help reducing the carbon dioxide emissions by 20.8 million kgs annually

• Introduction of electricity driven pump-sets in various ranges for agriculture


Greaves Cotton has a strong determination towards serving the society with best intentions. The Company constantly works towards inclusive growth and betterment of society and the environment. The company has always worked to be a responsible corporate citizen and to bring about a meaningful difference in the society. The company has been working closely with civil society organisations and the governments to achieve its Environmental, Social and corporate governance (ESG) journey. The socio-economic impact of its activities has been deeply ingrained in its ethics to conduct business. This gives hope and strength to its future endeavours by touching various goals as set by the united Nations Sustainable Development goals (SDGs).

Keeping in mind the larger good of the society, the Company strives to work towards inclusive growth and betterment of society and the environment. Its various cSR initiatives create a positive impact on all stakeholders. During the lockdown period, the Company remained committed to stand with the nation and made significant contributions towards the society at large, such as:

• Distributed masks and sanitisers

• undertook efforts to provide dry ration to the less privileged

• provided health protection kits, hand sanitisers, and medical kits through its "You care, We care" program

• Installed Greaves gensets in hospitals

• Provided engines to spray disinfectants on roads and other public amenities

• Supplied knapsack sprayers to disinfect public places

• Planting trees as part of our eco-green initiatives under environmental protection theme of cSR

Meanwhile, the company also continued its routine cSR activities. DEEP

The company provides technical training to Indian youth under DEEp (Development, Education, Empowerment, progress). It is a skill-based training program related to manufacturing. currently, the company has 85 DEEP trainees enrolled for the program.

Prime Meet

Under its Prime Meet initiative, the company organises re-skilling and training workshop for mechanics. One-day workshops are conducted by industry experts at different locations.

The Greaves Scholarship Program (GSP) is an initiative to further the cause of education by financing students education. Financially disadvantaged families of auto-rickshaw/e-rickshaw drivers and/or farmers can benefit from this program.


Environment protection is an integral part of the companys way of doing business. Greaves cotton works for environment protection through several initiatives, like the cauvery calling project.


cOVID-19 presents an unprecedented challenge to the entire world, calling for stronger and collaborative action from various organisations to join in the efforts and help the Government fight the pandemic. there is a compelling need for healthcare and material support along with community responsibility. Greaves cotton is extremely committed to the intention of delivering and pulling out all possible stops to help the nation combat cOVID-19.

In the face of this pandemic, Greaves cotton, has undertaken the following on-ground initiatives to support some of the most pressing needs of the nation:

• Strong commitment to ensure the safety and well-being of all stakeholders, employees and the environment

• As part of employee-first policy, apart from the work from home drive, the company distributed masks to employees and their families in Aurangabad, coimbatore, and Ranipet

• Under "Support the Protectors" program, masks were provided to the Karnataka police in Bengaluru city

• partnered with cRY to provide dry ration to kids and families for a month across Mumbai and Delhi NcR regions

• provided health protection kits, hand sanitisers and medical kits to several mechanics across key states through You cARE, WE cARE program

• With the help of key authorities, installed gensets in hospitals for quarantine facilities in the state of Maharashtra to provide 24x7 power supply and ease the work of covID warriors - doctors, nurses and other healthcare professionals working

• In order to provide a safe and clean environment, the Company deployed 5 Hp diesel engines to spray disinfectants through fire brigade vehicles in the Sangli district of Maharashtra

• Helping local bodies and institutions to disinfect public places with supply of knapsack sprayers. This is being used as a preventive measure in public congregation areas, large establishments, community neighbourhoods, municipal corporations, hospitals, and railways all over India

At Greaves cotton, caring is never an afterthought. It is a commitment made not just for challenging times but for always. It is second nature, and all initiatives are built on the commitment to organise resources, expertise, and a compassionate and resilient team to support those in need. Given the enormity and severity of the pandemic, no contribution is too big or small. The company endeavours to help restore normalcy and combat this global health crisis through all possible means together.


At Greaves Cotton, the goal is to be future-ready. The most i important aspect of this goal is to create a talent pool of people who are ready to embrace new technologies and evolving consumer preferences. The company thus faces the fundamental challenge of motivating employees, investing in them and devising scalable programmes. The Company closely works with its people to understand their needs and engages with potential employees who can fit and resonate well with the organisations vision.

As the manufacturing industry adopts automation and digitisation trends, the company is looking to hire smart minds to build a stronger team which is at par with industry standards. To keep enhancing efficiency and quality levels, the company is hiring smart and technology-savvy people who are well-versed with the ecosystem, prepared to take on new challenges and quick to adapt to a new territory.

The company envisages good business growth in the future and so is expanding the team. However, at the same time, the focus remains to introduce up-skill initiatives for existing employees to help them learn newer initiatives.

Diversity, Inclusion, and Belonging continue to be a focus area for us at greaves cotton. The company ensures that every single person at greaves cotton is valued, heard, respected, empowered and feels a true sense of belonging. The company goes beyond compliance to actually celebrate and elevate every person in the room.

The aim is to raise the companys employee value proposition to ensure it resonates with a diverse audience. conscious efforts by the leadership team help ensure gender fluidity and improve diversity in the organisation.

greaves cotton is progressing towards becoming a B2c company. With the new set of stakeholders, the company is faced with new

challenges. The company needs to be geared up to ensure a smooth transition. The company has embarked this journey with several internal programs like Grow (greaves Recommended online Workshop) to boost employee morale. The focus has always been to develop future skills in the organisation. Leveraging the power of e-learning, the company offered exciting learning opportunities for all employees and their families. To motivate employee-led company undertakes several employee-led initiatives including monthly catch-up sessions with senior management, providing insights into the business growth trajectory.

As an organisation, the company believes that reskilling and upskilling inculcate employees with motivation and loyalty. When organisations make it a priority to invest in their employees learning and development, there is a commensurate improvement in retention rate, employee satisfaction and productivity. the companys idea is to move along with every individual and upgrade their skills from time to time, to enhance productivity and efficiency.

As on March 31, 2021, the payroll count of permanent employees was 1,101. The year gone by was satisfactory in terms of industrial relations of the company with its employees and trade unions.