Greaves Cotton Ltd Management Discussions.


Global economy

The year 2021 continued to be impacted by disruptions caused by the second wave of coronavirus across the globe, though at different peak periods, causing lockdowns, restrictions to mobility and severely impacting global supply chain. Despite rapid and effective rollouts of vaccination programs in most advanced economies, vaccination programs in many emerging market and developing economies were sluggish. In advanced economies, goods consumption saw a multifold increase, leading to overloading of global supply chain networks. The problem was further aggravated due to pandemic-related impediments to transportation and staffing, just-in-time logistics and lean inventories. The resulting disruption to global trade led to shortages and higher prices for imported consumer goods.

The global economy entered 2022 in a weak position due to new Omicron COVID-19 variant related mobility restrictions, geopolitical tensions, rising energy prices and supply disruptions resulting in high broad-based inflation, notably in the United States and many emerging market and developing economies. Global growth which was 5.9% in 2021 is expected at 4.4% in 2022. Led by the escalation of the Russia-Ukraine conflict in early 2022, global inflation is expected to surge due to high dependence of EU on Russia for trade and energy. Although output and investment in advanced economies are projected to return to pre-pandemic trends in 2022, in emerging market and developing economies (EMDEs), particularly in small states and fragile and conflict-afflicted countries, output and investment will remain markedly low, owing to lower vaccination rates, tighter fiscal and monetary policies, and more persistent scarring from the pandemic.

(Source: IMF January 2022 - World Economic Outlook, World Bank January 2022 - Global Economic Prospects)

Indian economy

The size of the Indian economy is expected to surpass the pre-pandemic level by growing at 8.2% for FY 2021-22 and 7.2% for FY 2022-23, after recovering from a historic contraction of 7.3% in the preceding year because of the COVID-19 pandemic that led to a nationwide lockdown, which hit both private consumption and output. Agriculture is expected to lead the growth on the back of a good monsoon. Manufacturing and construction are estimated to grow in double digits, aided by a favourable base. However, growth in the services sector is expected to remain muted. Private consumption is expected to grow, signalling the lingering impact of the pandemic on consumer sentiment. Government spending has been a major driver in keeping the economic activity ticking. With the government likely to push for higher capital expenditure investment demand is expected to see robust pickup.

According to first advanced estimates by National Statistics Office (NSO), in FY2022 GDP growth rate is projected at 9.2% on the back of strong projected performance of major sectors including services, agriculture, manufacturing, mining, construction and energy. The last quarter of FY 2021-22 was impacted due to the

third wave caused by the Omicron variant and geopolitical conflicts between Russia and Ukraine. Rising international commodity prices is the biggest risk emanating from the conflict, as Russia and Ukraine are global suppliers of key commodities. The conflict, if it continues for a longer period, will further hit supplies of major raw materials, including crude oil, natural gas, food, fertilisers, and metals, it added.

Indias GDP is estimated to grow at 7.2% in FY 2022-23 with rising prices triggered by the Russia-Ukraine conflict posing as the biggest challenge to the global economic recovery. The growth is mainly driven by strong investment growth, with public investment helping crowd-in private investment.


About the Company

Greaves Cotton Limited (hereinafter referred to as the Company) is a diversified engineering conglomerate focussed on being pivotal to Indias resurgence as a competitive economy. The Company is a leading name in the domain of Fuel Agnostic Powertrain Solutions, E-Mobility, Aftermarket & Retail Solutions and Auxiliary Power. The Company has a unique positioning in the last-mile mobility ecosystem. This multi-product and multi-location company with over 16 decades of legacy, is transforming yet again, towards a future-ready portfolio of businesses.

Segments like Greaves Non-Automotive, Electric Mobility and Retail, have seen increased growth momentum and a better recovery due to positive demand. Greaves Electric Mobility Business comprising Ampere (2W), ELE e-rickshaw continues to add significant value.

The Company has a widespread retail network and 6 manufacturing locations with subsidiaries. The Company boasts of the widest auto aftermarket network with 6500+ retail outlets, 15000+ mechanics and 350+ dealer touch points.

Driven by trust, legacy and assurance, the Company has emerged as an adaptive, agile, dynamic and collaborative company, open for partnerships for rapid growth.

Company performance

The Company witnessed progress across key businesses especially Retail and E-Mobility segments. Greaves electric mobility (GEM) is one of the top players in the last-mile electric mobility domain, covering ~85% of the mobility segment in terms of volume with a presence in the E2W and E3W. The Companys diversification strategy helped in maintaining good financial health despite COVID-19 related and technological disruptions.

The Company continued to be ranked one among the top players in E-mobility industry by recording the best-ever sales. Retail and Non-Auto businesses exhibited strong resilience even under challenging market conditions. The Company inaugurated its largest EV manufacturing facility and an Experience Centre at Ranipet, Tamil Nadu. This will herald a new fast-paced growth for GEM. With strong fundamentals and growth-oriented focus, the Company is poised for strong future growth across core businesses.


Though COVID-19 related restrictions were significantly reduced towards the end of the year, the first three quarters of FY 2021-22 remained challenging.

In FY 2021-22, the Company reported consolidated revenue from operations of Rs 1,709.70 crore as compared to Rs 1,500.40 crore in FY 2020-21. Consolidated Profit after taxes reported a loss of Rs 35.30 crore as compared to loss of Rs 18.78 crore in FY 2020-21.

There was net exceptional expense of Rs 2.31 crore as compared to Rs 34.46 crore exceptional expenses in FY 2020-21. As part of Greaves diversification strategy, new business initiatives contributed 49% of the total consolidated revenue for FY 2021-22.


Engines Business Automotive Engine Industry Overview

The COVID-19 pandemic continued to impact the 3W automotive sector in India even in FY 2021-22 resulting in considerable drop in sales and insufficiency of raw material due to chip shortage. Shutdown of majority of academic institutions, schools and offices since March 2020, severely impacted the 3W passenger market. Led by various restrictions in mobility due to COVID-19 related challenges, the overall industry shrunk in size. Additionally, rising fuel costs increased the disparity between diesel and Compressed Natural Gas (CNG)/ Liquified Petroleum Gas (LPG) vehicles. This increase in total cost of ownership affected the sales of 3W diesel vehicles.

Heightened geopolitical tensions and spike in fuel cost, is expected to restrain the 3W market growth in near future. The Company has re-positioned itself in the last-mile mobility landscape with clean technology range of fuel-agnostic powertrain solutions.

As the pandemic situation came under control post January 2022 and majority of the academic institutions and offices switched to offline mode, OEMs offtake saw positive traction. The improved CNG connectivity across many states resulted in increased buyer preference for CNG Vehicles. The Company launched the Greaves BS-VI CNG mono Fuel Engine in FY 2021-22 and witnessed robust volume growth in the alternate fuel segment.

Business Overview

The Company manufactures automotive engines across fuel range- Diesel, CNG. With Indian mobility moving to BS-VI from April 2020, the Company started supplying BS-VI engines in both diesel and alternate fuel variants to its OEM customers. The BS-VI diesel engines have shown superior performance and have been well-accepted in the 3W segment. In FY 2021-22, automotive engine sales market witnessed a sharp decline because of COVID-related situation.

The BS-VI CNG engine is built for affordable 3W application, providing better performance and higher fuel efficiency with lower total cost of ownership (TCO). Post third wave of COVID-19, the automotive engine market is recovering with OEM confidence signalling growth. The new CNG engine is expected to drive volume growth in the alternate fuel segment in the coming years.

The Company continues to invest in the automotive business R&D for providing affordable fuel-agnostic solution to its customers on continuous basis. In FY 2022-23, the Company aims to provide more affordable and lower TCO BS-VI diesel engine solution to drive volume growth in the diesel segment.

Market Overview

Shared mobility segment especially the 3W passenger segment continued to be impacted by subsequent COVID-19 waves and related lockdown with restricted movements in force until Q3 FY 2021-22, however, as compared to pre-COVID level, the market is still 70% down overall for 3W business. With the launch of new BS-VI CNG engine and improved CNG availability across India, growth is expected to improve in the coming year.

Non-Automotive Engine Auxiliary Power Business Industry Overview

Economic activity was dampened in Q1 and Q3 of FY 2021-22 due to the second and third waves of COVID-19. This severely impacted sectors such as industrial manufacturing, tourism, hospitality and educational institutions, leading to subdued demand for DG sets from these sectors. On the contrary, health sector mainly COVID care hospitals, oxygen plants and quarantine centres, witnessed high demand for gensets in Rajasthan, Punjab, Uttar Pradesh, Maharashtra, Gujarat, Kerala and Karnataka. Greaves gensets powered several critical applications during COVID-19 period. In the second and fourth quarters of FY 2021-22, the overall demand for gensets picked across segments. The Company received several bulk orders by key customers resulting in further pick-up in sales.

Business Overview

With its IOT-enabled Genius series of DG Sets up to 500kVA and enhanced range of DG sets up to 2500 kVA, the Company was able to penetrate untapped segments with a greater focus on both private and government sectors. This led to significant pick up in the auxiliary power business in states such as Rajasthan, Uttarakhand, Delhi NCR, Telangana, and Tamil Nadu. Increasing prevalence of gas/hybrid fuel gensets and renewable sources of energy in future pose risk to future growth.


The Company is working on upgrading its existing portfolio to CPCB IV and new product launch to comply with new emission standards. It is focussing on earlier untapped markets to increase market penetration through its Genius series which is backed by unmatched 5 years/5000 hours warranty, and also on DG Projects business to promote its Mega series (1010 kVA and above) by offering turnkey solutions to various segments such as industry, data centres, realty, etc.

Farm Equipment Industry Overview

Retail businesses continued to reel under COVID-19 pressure in FY 2021-22 with partial lockdowns affecting people movement and leading to shop closures in parts of the year. Agriculture subsidy funds were diverted by the State Governments for COVID-19 control related expenses. Marginal farmers, major buyers of small farm equipment, delayed purchase decisions due to lack of institutional finance support. Poor availability of subsidy fund and excess rain in prime agricultural states resulted in poor demand of tractors and tillers.

Agriculture and the allied sectors proved to be the most resilient to the COVID-19 shock growing 3.6% in FY 2020-21 and 3.9% in FY 2021-22, making agriculture one of the most prominent sectors in the country. Good monsoon in 2021, enabled good moisture level for rabi and zaid crops. Governments strong emphasis on Make in India is driving the future of farm mechanisation and providing good opportunity for Indian engine and farm equipment manufacturers.

Source: AS per internal estimate

Some significant Government developments during the year include:

• End of farmers protest led by the Government withdrawing New Farm Laws which allowed farmers to sell their product across city, not bound to their Agricultural Produce Market Committee (APMC)

• Released Pradhan Mantri Kisan Samman Nidhi of ?6000 per annum in 3 instalments, aimed at helping farmers for agri input amidst COVID-19 challenges

• Several states provided farm equipment on subsidy to Women Self Help Groups. This is likely to be adapted by more states for women empowerment. This is expected to boost demand for small agri and household equipments such as mini dal mill, rice mill (engine/electric) etc.

• Launched Urjadata Yojna allowing farmers to sell additional electricity generated from their solar pumps to the grid

• Launched Kisan Udan Yojna enabling farmers to transport agri perishable commodity through railway wagons

• Increased focus on controlled usage of fertiliser and chemicals, to improve usage of mechanisation for increase in crop yield

Business Overview

The Company provides farm mechanisation solutions to small and marginal farmers, which constitute over 80% of the agriculture segment in the country. With a product portfolio for every stage of crop cycle, from tillage to harvesting, the Company has evolved as a farmer-friendly farm equipment brand. During FY 2021-22, the Company focussed on R&D and new projects, considering shift in usage condition and the futuristic challenges. Greaves OHV Petrol Weeder was launched in H2 of FY 2021-22 to benefit the farmer in terms of money and time, as the fuel-efficient technology enabled farmers to shift to mechanised weeding from manual weeding. Dedicated cross-functional team is working to launch a series of small farm equipment for new applications and new territory, in FY 2022-23. This series is expected to make farming easy, lead to time and cost savings thereby bring happiness to farming community.

The Company is working with small equipment manufacturers to promote the sale of engine and end products.

Risk & Concerns

• Several steps have been initiated to increase revenue from non-subsidy products, which is better in all aspects of price, quality, reliability, productivity and aftersales support. However, it is a gradual process taking time to reap benefits


• Led by Governments Make in India movement, Indian manufacturers are presented with big opportunity to introduce quality products for Indian farmers. This is expected to increase employment across the entire supply chain

• PM Kisan Samman Nidhi will continue to help farmers to purchase farm inputs by providing them financial support

• Growing Central and State governments thrust to improve farmer income through various budgetary allocation and schemes at ground level is expected to improve livelihood and purchasing power of small and marginal farmers

Industrial Engines Industry Overview

Industrial Engines industry witnessed robust growth led by resurgence of old projects related to oil & gas, construction and building segments. There has been a surge in demand in the fire-fighting engines segment. With no change in interest rate for the housing segment, building segment has witnessed substantial demand recovery almost reaching pre-COVID levels. Market has also seen shift of consolidation of demand on specific nodes with respect to Government regulations and demand change. Market is also seeing good traction for FMUL engines for both domestic and global OEMs. With special Government focus on the inland waterways & fishing segment, marine segment has seen growth.

There has been a shift in the market from conventional engines to electrical products like motors and battery-driven equipment. However, India is still at the bottom of pyramid on mechanisation for farm, construction and marine segments. There is huge scope for the industry to grow and expand. The Governments Make in India initiative is helping local players to enter Chinese dominated segments of agri and construction.

Agri segment, mainly driven by tractor, saw de-growth due to base effect and continuous rains in most parts of the country. With expectations of normal monsoon, the segment is expected to bounce back in FY 2022-23.

Business Overview

With new products added and range extended up to 20 HP, OEMs will have multiple options of fuel, cooling type, RPM range and various regulatory and emission certifications applicable. All the engines are certified for various emission requirements related to tractor, construction machinery and marine segment. With recent addition of E-V certification, the Company is qualified to supply engines to matured western markets of Europe and USA. The Company is also planning to invest for adding new range of engines for global and domestic markets with improved features like better aesthetics, improved safety features & lower NVH engines for comfortable working.

Led by the addition of more than 15 OEMs in the previous year and new products added, Non-automotive Small Engines business is expected to continue its growth momentum in FY 2022-23. The industrial engines business registered more than 50% growth for firefighting pumpsets (FFP) and marine segments. The Company is continuously working to add new product and new customers for both domestic and global markets. There has been significant addition of strong OEMs and large customers in FY 2021-22. To diversify business from B2B to B2B and B2C, the Company launched light construction equipments and short tail marine OBMs in FY 2021-22, which have seen good traction. The Company has invested on development of new engines for FFP business to cater to global markets. It is also planning to enter new applications and new markets in FY 2022-23 as COVID-19 related restrictions come to an end and customers are willing to spend on new projects.

Risk & Concerns

• With continuous increase in RMC due to exceptional commodity inflation, there is severe pressure to manage profitability. This also poses a risk of end equipment becoming too costly for the segment

• Global supply chain challenges and volatile situation across the globe, pose a risk of supply disruption.

• With market slowly shifting towards electric machineries, some of conventional business are at risk

• Increased competitive environment especially in agri and marine segment

• Non-availability of large range of engines of >700 HP Outlook

With strong demand continuing from both FFP & marine segments, the Company expects sustained growth for the industrial engines business. With expectations of increased Government spending on new projects in Infra & Defence segment due to lesser COVID-19 disruption, the Company expects good traction in the market. In FY 2022-23, launch of new products will enable the Company to foray in virgin markets. Led by new product and new OEMs, the Company expects strong demand pattern continuing.

NASE business is expected to grow led by new product and new customer additions. In addition, E-V certification, new engine additions, end equipment play and entry with electric equipment are expected to be the key levers of further growth. The Company is working closely with regulatory and government department to innovate new value for money products for marginalised famers, construction workers, fishermen etc. to improve their lifestyle. At overall level, with certain risk of some markets remaining flat and some market moving towards electric technology, NASE business is expected to continue its robust growth trajectory.



Greaves Retail is a one-stop shop for all customer needs in the mobility ecosystem. As one of the few organised one-stop shops offering end-to-end sales, service and spares (3S) solution, Greaves Retail is one of the most sought-after sales solution provider uniquely positioned between expensive authorised OEM centres and unorganised local service providers. Greaves Retail offers genuine parts, is equipped with company-trained technicians, has established processes in place, ensures end-to-end dealer on boarding and has a dealers information portal. It provides hands-on training to its technicians on new-age technology of EV and BS-VI norms to ensure the channel partners are future-ready, enabling the Company to create a complete ecosystem.

Greaves Retail is a growing business since its inception and registered a significant growth over last year despite nationwide lockdown for more than three months. Customer retention of over 50% has been a major contributing factor for the growth. The Company stores customer feedback and is committed to improve service quality, cost and delivery by constantly taking customer-centric initiatives through a dedicated call centre.

The Company launched AutoEVmart, Indias largest multi-brand EV outlet. This is a multi-brand experiential store for the e-mobility ecosystem. This will further strengthen the Greaves retail business with widened play in the multi-brand EV segment.

AutoEVmart provides complete 3S solution covering a wide spectrum of customer segments in both B2B and B2C applications. It addresses the various needs of working executives, students, homemakers, fleet owners, last-mile delivery partners in food commerce, E-commerce and more.

Greaves Retail has widespread trained field managers to support customers and channel partners business needs. Increase in the number of offerings led to increase in per outlet revenue growth over last year. With 42 new touchpoints added in FY 2021-22, Greaves Retail network is growing with 3S including EV portfolio. Greaves Retail is also a promising business model for its channel partners.

Risk & Concerns

AutoEVmart :

• EV charging infrastructure solutions required for long duration multi-frequency electric operations

• Some of the collaborating multi-brand partners are start-ups and lack process adherence and industry best practices

Greaves Care:

• Increasing fuel price making commercial vehicles non-viable

• Increasing demand for low cost parts alternates in the market due to pandemic and increasing fuel price


Auto Industry is expected to witness a major shift with multi-brand EV outlets playing a major role in EV retail business. As the world is shifting towards a better buying experience and convenience, multi-brand outlets will be the preferred choice. Since most of the OEMs are new and are lacking significant brand equity, organised multi-brand EV retail, providing assurance of quality and service are expected to see strong traction. Launch of AutoEVmart paves way for a whole new journey in the EV Retail space.


The Company has remained the supplier of choice over decades in the aftermarket due to its unflinching commitment to world-class quality and service. The Company has been successfully providing uninterrupted and high-quality mobility solutions for the customers.

The Company, backed by years of close interaction with primary and secondary market stakeholders, has created a diverse range of products suiting diverse requirements of the customers for the 3W & 2W vehicle segments. Continuing its commitment to quality parts for customer experience, the Company has been introducing multi-brand parts and diagnostic/service tools for high quality maintenance.

The Companys strength has been in its extensive network across the country. Its mission is to strengthen customer relations and expand their retail network with range, reach and reassurance. The channel expansion has helped to reach companys products to more consumption centres enabling access for genuine parts to the customers. The distribution network of the company includes:

Ensuring uninterrupted journey with our fast growing retail network

Through its extensive network, the Company provides numerous business engagement opportunities and localised support with well-trained sales and service staff. The Company continuously engages in training and skill building of mechanics and channel partners with a purpose to provide them with a reliable skillset towards improving their livelihood and help achieve their dreams. The Company is proud of supporting many drivers and micro-entrepreneurs in smaller towns and cities as part of this endeavor. The activities from the Company focus to educate/train customers on its products & technologies and to differentiate genuine from spurious parts.

Market overview:

COVID-19 pandemic impacted the consumption pattern for spares especially for the last-mile mobility vehicle segments. The repair cycles became longer due to lower average vehicle running and due to significant increase in spares costs based on commodity impact. Retail consumption is expected to have been reduced by 20-25% as per feedback from trade participants during the year.

Post the second wave of COVID-19, the retail markets faced tough liquidity conditions. This was further impacted due to the third wave and adversely affected the anticipated retail market growth for FY 2021-22. The Company has been continuously engaged with identified channel partners to accelerate recovery and realigning the distribution network for business growth.

Key developments in FY 2021-22

• Network expansion to increase reach and availability of parts to support business growth

• Good new product acceptance of 3W multi-brand parts and increased market share

Risk & Concerns

• Diesel parts growth to decelerate significantly and faster. New business initiatives are expected to off-set the risk

• Lower consumption trends with passenger movement restrictions due to repeating pandemic waves.

• Challenge to retain customers with high price recoveries against commodity increase which may result in likely preference to cheaper parts during tough business conditions

• Risk of competitiveness in multi-brand parts


Market consumption is likely to return to normalcy during FY 2022-23 with more efficient retailing engagement with the primary & secondary markets through:

• More efficient retailing engagement with channel partners

• New Product Development

• New Distribution Channel Acquisition

• Digital initiatives enabling faster & easier customer interface

The Company is planning to increase its engagement in the retailer domain with planned marketing interventions which will strengthen product pull. The loyalty programs are being tweaked to bring more participants from the secondary market domain, creating long term and sustained demand for its products.

The growth momentum in multi-brand spares is expected to gather pace with additional business promotional efforts planned.

The Company is in the process of establishing a robust supply chain to augment its presence in EV spare parts. For this purpose, it has been forging relationship with exclusive channel partners.


Two-wheeler Industry Overview

Despite COVID-19 related challenges, in FY 2021-22 EV segment witnessed robust volume growth. This is attributable to significant promotion of EV segment emissions, increase in fuel prices, growing acceptance around comfort of EV usage, and focus on Make in India. Increase in FAME II subsidy led to spur in EV sales and investments in the sector. Several new players forayed into the segment.

Business Overview

Ampere Electric Scooters has emerged as one of the fastest growing E2W brand in India. Ampere is spread over length & breadth of the country & continues to play a vital role in driving Indias switch to cleaner & greener mobility. It is also supported by a robust service network that includes a multilingual call-centre for uninterrupted service. Its state-of-the-art manufacturing facilities have created several employment opportunities.

The Company inaugurated an EV production facility in Ranipet, Tamil Nadu in FY 2021-22 with ~70% women workforce. Ampere continues to show strong support for the flagship initiatives of the Government of India, such as Make in India and Atmanirbhar Bharat.

Risk & Concerns

• COVID-19 related disruptions especially like that witnessed during the second wave

• Disruption in global supply chain may lead to shortage of critical parts

• Commodity price increase puts pressure on margins

• Increased competitive intensity due to entry of multiple players

• Withdrawal of fame subsidy may have volume / growth impact


Industry Overview

In FY 2021-22, the demand for EV 3W witnessed an increase over FY 2020-21 with E-rickshaw industry posting 91%* growth in FY 2021-22. Similarly, the passenger market grew 98.4% in FY 2021-22. E-rickshaw cargo also saw 36% increase in demand in FY 2021-22. The increased demand is mainly attributable to relaxation in COVID-19 norms, and increasing fuel prices (diesel, petrol, CNG) which shifted the demand from conventional 3W to e-rick ownership and improved retail financing activity.

Source: *As per Internal estimate

Business Overview

ELE is playing a crucial role in transforming last-mile mobility uplifting several cycle rickshaw drivers with superior motorised solutions. ELE continues to be a partner in progress for several businesses which are dependent on passenger and cargo vehicles for their uninterrupted delivery operations. The brand caters to B2B players, retail businesses and individual buyers with a wide range of products in E-rickshaw and cargo to suit the customisable needs. The brand has strong equity in several parts of the country as it resonates the spirit of clean and affordable mobility.

ELE witnessed positive growth in FY 2021-22 over FY 2020-21 and outperformed the industry growth. The business footprint expanded from 165 touchpoints to 345 touchpoints. For retail customers, GLFL-Vedika Finance tie up was introduced to ensure ease of finance and better service to the customers.

Risk & Concerns

• FY 2021-22 was an abnormal year in terms of raw material availability and rising material costs

• Prices of all key components were under stress due to logistics impact in China and escalation on account of commodity prices

• In FY 2022-23, abnormality is expected in terms of raw material price impact


With growing popularity of smart, clean, affordable and dependable solutions, demand for EV is growing steadily. Governments scrappage policy and rebates on EV purchases is boosting EV growth. The 3W EV industry is expected to witness robust growth in FY 2022-23 both in terms of revenue and volume. State and central government schemes and push for lithium ion will also add to the growth in industry volumes.


Finance Business

Business Overview

Greaves Cotton Group forayed into the retail financing business in H2 FY 2019-20, through its wholly-owned subsidiary Greaves Finance Ltd (Greaves Finance). The key imperative was to propel the retail sales of EV apart from adding value to the group through generating reruns on the deployed capital. In the absence of full-fledged independent retail financing infrastructure and distribution network, Greaves Finance leveraged its partnership with other NBFCs that focus and specialise in the 2W and 3W financing businesses respectively. Further, signing up of another Fintech NBFC having a niche presence in the 2W financing segment in the South, as a strategic co-lender, is expected to drive the growth of the retail financing portfolio.

The Retail Financing business has been striving to support Greaves E-Mobility business in all its strategic plans. Greaves Finance has now expanded into towns beyond tier II cities in States like Tamil Nadu, Kerala, Delhi NCR, Uttar Pradesh, Bihar, Jharkhand and West Bengal. The Company is amongst the pioneers to finance both high speed and low speed E2Ws at the retail dealerships. As Greaves Electric Mobility Private Ltd (GEMPL) is making the accelerated shift to high-speed vehicles along with the entire E2W industry, Greaves Finance with its expanded network is more poised to propel the retail sales of E2W at the dealerships.

Serving the hinterland of India continues to be amongst the biggest strengths and hallmarks of Greaves Finance. This has been possible through robust back-end credit operations, quick credit processing and technology-led processes for assessment, competitive 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 strategic partners in the last-mile delivery/aggregation services in logistics, which it serves under multiple models such as operating lease, capital lease, etc.

Recently, Greaves Finance has put the technology and infrastructure in place and launched its own operations. The Company is looking to expand its retail distribution network to other geographies in FY 2022-23 in order to augment the growth in retail financing. Besides playing a role in accelerating the countrys transition into clean mobility, this also significantly enables financial inclusion by catering to the customers who are at the bottom of the pyramid.

Risk & Concerns

• Large part of the demand for retail financing is still derived from the customers beyond tier II cities

• Both E2Ws and E3Ws are still in the early stages of industry evolution with not much adequate depth in the second-hand market. Hence, there is risk of lower realisation of value for the repossessed vehicles in case of delinquencies/NPAs

• 3W as an asset class is perceived as high-risk category and most other financial institutions stopped financing this asset class in the last two years


With the increased thrust from Central government and multiple State governments and expected roll-out of subsidy programs for propelling the adoption of EVs, the Company expects an exponential rise in the demand for EVs in the coming years.

Currently, the overall financing penetration for E2Ws at the retail level dealerships is ~12% including the financing of both slow speed and high speed E2Ws. This is likely to increase significantly over the next two years. The growth in retail sales of 3W is also expected to fuel the growth in the financing portfolio.

The Company has largely leveraged only its partnerships to grow the portfolio. In order to make the credit assessment and disbursements more robust, the Company plans to augment the technology platform with decisioning analytics capabilities. This will help in keeping a tight control over the portfolio by having sound risk mitigants in place.


Greaves Technologies Limited (GTL), part of Greaves Cotton group, is one of the leading diversified engineering companies with presence in automotive, non-automotive, aftermarket, retail, electric mobility solutions (EV) and finance. GTL is a lean, dynamic, innovation fuelled, technology driven global engineering services and solutions company. With proven expertise and credibility in the automotive product engineering life cycle, it is also leveraging the Companys core IC engine design, development and testing, and EV expertise, knowledge, and capabilities. Increasing technology importance in the global automotive industry is leading to higher requirement of engineering services. GTL continues to innovate, leverage technology at the forefront and find new avenues to provide reliable solutions. GTL aspires to be a technology convergence catalyser for the Companys products, looping back cutting-edge technology and solutions from around the world. With a strong off-shore (India) network and eco-system, GTL will pursue developing highly skilled talent, building customer centric long-term relationships, delivering cutting edge technology services and solutions, and employee enrichment focussed global organisation. GTL has adopted "Going Global" theme for FY 2022-23, with plans of establishing and expanding operations in US, and a focus on new age technologies as the main driving force.


Commensurate with the size of business and industry, the Company has devised a comprehensive internal control system. It has a strong internal finance control (IFC) framework, the internal controls are designed to safeguard the assets and ensure efficient productivity at all levels. The internal control systems and benchmarks comply with globally accepted framework issued by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) Internal Control - Integrated Framework (2013). Keeping in view the dynamic changes in norms, the Company undertakes review of the internal control systems at regular intervals, and modifies and incorporates upgrades as applicable.

The internal controls are designed to ensure:

• Operational performances efficiency and effectiveness

• Safeguarding of assets

• Close monitoring of systems to control frauds and errors

• Accounting functions completion and accuracy of accounting across all businesses

• Financial performances dependability and promptness

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 all applicable laws and statutory requirements are met with.


Information Technology is tightly coupled and aligned with all the business entities within the Company. ERP remains at the core of business process and rules. The peripheral application ecosystem is built around this core. The Company ensures security, stability and scalability of the systems to provide seamless delivery to both internal users as well as customers and vendors. Multiple checks and balances are built into the systems to ensure 24*7 availability including that on mobile devices. Workflows and approvals in the systems are integrated with the authorisation matrix of the company to ensure higher productivity and turnaround time.

Digital transformation is aimed at increasing revenue or saving costs. Customer experience and interaction is of prime importance. The Company strives to provide the best interaction of product and service on offline as well as online platforms.

Though digital initiatives are focussed on all stakeholders, customer-specific solutions were also implemented in several areas, service excellence like in electronic field service report, etc. Data mining and analytics is also given special attention within the organisation to provide the right business insights to the leadership team.


Sustainability has become an integral part of individuals, organisations, and governments alike. Impact on the environment is a primary concern of the Company and it believes that a collective movement towards a sustainable future will enable huge changes. Sustainable innovation is a key priority in the business model. Meeting the needs of the present without compromising the ability of future generations to meet theirs is the basis of all sustainability measures undertaken. The three primary pillars associated with corporate sustainability are social, environmental, and governance. Combined, these core components help embrace sustainability in a way that is beneficial to efficiency, sustainable growth, and shareholder value. Key activities to reduce dependency on energy and to minimise use are.

Environment: The Company has adopted an environment-friendly approach in all its initiatives, manufacturing processes and technological innovations

• GHG reduction initiatives to reduce carbon footprint include Greaves Electric Mobility & Ele E-Rickshaws that serve almost 100,000+ customers, ELE electric rickshaw and cargo solutions that serve almost 10,000+ customers on the road

• Steps taken or impact on conservation of energy include energy efficient pumps in machining and engine testing, Condition Base Monitoring (CBM) tool for efficiency improvements at LEU-I & LEU-V, procuring HPDC crankcases instead of LPDC in BS-VI diesel model and installed solar rooftop panel at two plants in Aurangabad at Chikalthana and Shendra

• 100% treated water is recycled back into process

• The Company is ISO 14001:2015 and ISO / I EC 17025:2005 certified

Governance: The Company follows Pancha Tatva meaning 5 values 1 way of life, encompassing transparency, integrity, responsibility, passion for excellence and respect. There have been no cases of unfair trade practices, irresponsible advertising and anticompetitive behaviour. All the members in audit committee and nomination and remuneration committee are non-executive.

• Behaviour and Business Ethics: The Company is committed to conduct its business in accordance with the applicable laws, rules and regulations and with highest standards of business ethics. Code of Conduct is intended to help foster a culture of transparency, honesty and accountability, to provide guidance and help in recognising and dealing with ethical issues and provide mechanisms to report unethical conduct.

• Governance Oversight Framework: Board Members play a central role in the governance of the Company. The Board of Directors is the decision-making authority on all matters.

• Board Skill Map Matrix: The Board of Directors of the Company comprises of qualified members who possess relevant skills, expertise and competence for the effective functioning of the Company. The Board has identified the following skills / expertise / competencies fundamental for the effective functioning of the Company: Global Economics, Finance and Accounts, Sales, Marketing and Commercial, Merger and Acquisitions, Manufacturing, Quality and Supply Chain, Corporate Governance, Technology, & General Management, HR and Leadership.


The Company is determined to serve the society with best intentions. The Company has always worked to be a responsible corporate citizen and to bring about a meaningful difference in the society. It has been working closely with civil society organisations and various Governments to achieve its Environmental, Social and Corporate Governance (ESG) goals. 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:

* 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

* Planted trees as part of eco-green initiatives under environmental protection theme of CSR

* Helped hospitals in improving their capacity

Meanwhile, the Company also continued its routine CSR activities.


• Under the DEEP program, the Company undertakes reskilling and training of socio-economically deprived needy beneficiaries for their better employability and earnings

• The Stakeholder Reskilling program is aimed at training and reskilling key stakeholders including mechanics, E-rickshaw drivers, farmers, fishermen, auto drivers etc. to enhance their productivity and improve their earning opportunity


• Greaves Scholarship Programme offers educational scholarship donation to underprivileged students coming from lower income group


• Contribution of funds to hospital for capacity building

• Deployment of Oxygen concentrators for COVID-19 affected patients seeking medical care

• Ration kit distribution to low income groups and families whose income was affected by COVID-19 pandemic

• Health check-up for auto drivers and their families for their better and well-being


• Tree plantation drive on the coastal banks of river Cauvery, thereby enabling its restoration

COVID-19 Support

COVID-19 pandemic 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. The Company is extremely committed to its intention of helping the nation combat COVID-19 with all possible support.

In the face of this pandemic, the Company 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

* Deployment of oxygen concentrators for COVID-19 affected patients seeking medical care

* Partnered with Akshay Patra to provide ration kits to low income groups and families whose income is affected by COVID-19 pandemic

* 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 for 24x7 power supply and ease the work of COVID-19 warriors

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.


Human capital is a pre-requisite for the Company to achieve its goal, to be future-ready. The Company constantly invests to motivate the employees to embrace new technologies and adopt to evolving consumer preferences. The Company devises scalable programmes and strives to align employee goals with Company goals. Diversity, Inclusion, and Belonging continue to be a key focus area. Sustained efforts by the leadership ensure that all employees are valued, heard, respected and empowered giving them a true sense of belonging to the organisation.

The Company has been certified as a "Great Place to Work" for the second consecutive year. Treated as a Gold Standard globally, in identifying and recognising great workplace cultures, this certification makes the Company an "Employer of choice".

Starting April 2021, the Company launched a pan-India COVID-19 vaccination drive for all its employees with an aim to keep the workforce healthy, improve productivity and increase morale. The Company also conducted various educational workshops and webinars, curating the most effective tools, and deploying other research-proven resources to help employees learn more about their well-being and resolve peoples concerns in the best possible ways.

The Company launched an initiative to recognise and reward employees who display positive behaviour and walk an extra mile. Such behaviour is aligned with the PanchaTatva values and drives individuals and teams to go above and beyond the normal.

Assessment centres were run to identify a larger employee population, having a high potential to perform their best and build their competencies for future growth readiness of the organisation. Future Aligned Skills Training was also launched to train employees in future-focussed growth skill sets and competencies.

As on March 31, 2022, the payroll count of permanent employees was 931. The year gone by was satisfactory in terms of industrial relations of the Company with its employees and trade unions.