Engineering company Greaves Cotton has concluded to shut its Ranipet plant, said group CEO and Managing Director Nagesh Basavanhalli, It will continue to work on operational efficiency. This is done as part of its exercise for consolidation of plants, he added.
The company expects passenger three-wheeler segment to recover in the second half of this fiscal. It has taken a hit due to concerns around shared mobility as stated by Nagesh Basavanhalli.
He further added – “The company will continue to work on the operational efficiency. We have already committed to some plant consolidation, taking out over 10 per cent of fixed costs, which would mean there will be plant consolidation, some overhead cost reduction and strong focus on working capital management, cash flow, among others, going forward.”
And – “Greaves has a very strong working capital and cash flow management. As part of the operational efficiency, the company has decided to shut Ranipet (Tamil Nadu) plant and consolidate operations at Aurangabad plant in Maharashtra.”
Greaves Cotton Limited is an engineering major and a 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 legacy of over 160 years.
The company today manufactures products and solutions under various business units and is backed by support from 500+ Greaves Retail Centers & 6300+ smaller spare parts retail outlets across the country.
According to a statement made by the company – In the mobility segment, the company manufactures 4 lakh plus engines annually, almost 1 engine per minute and provides TCO mobility solutions to 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 2W personal Mobility segment with Ampere Vehicles in 2018.
–AK
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.