Greaves Cotton to spend Rs 110 crore on capex

Diversified engineering company Greaves Cotton plans a capital expenditure of about Rs 110 crore this year of which majority will be on its electric two wheeler plant at Ranipet in Tamil Nadu, which is expected to roll out product by the end of this year.
The Rs 1,500 crore turnover group will be funding the capex out of its internal accruals.
Greaves Cotton has signed an MoU with the Tamil Nadu government to invest about Rs 700 crore over the period of 10 years to set up a plant with an annual capacity of one million units.

Initially the production capacity will be about one lakh units per annum and it will be increased to one million units over a period of time and discussions are on for development of vendor base for various components.
Greaves Cotton got into the electric vehicles segment by acquiring the Coimbatore based Ampere Vehicles.
The Ampere Vehicles last year bought 74% stake in the Noida based electric rickshaw maker Bestway Agencies rolling out Ele brand vehicles.

The balance 26% in Bestway will be acquired in 2022.
Last year the group sold 27,310 electric vehicles (two wheelers 22,661 units, three wheelers 4,649 units) up from 22,918 units (two wheelers 18,536 units, three wheelers 4,382 units) sold the previous fiscal.

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