Greaves Cotton plans to build an automotive engine manufacturing plant in Aurangabad for about Rs 100 crore, to meet growing demand for such engines. An initial investment of Rs 60 crore has already been made in the unit which will have the capacity to produce 80,000 engines annually.
Greaves Cotton, that has interests in construction equipment, industrial engines and automotive engines, plans to start production from the new plant by the end of fiscal 2011. Greaves currently has more than 80% market share in the single-cylinder diesel engine segment in India. The company expects to capitalise on robust growth estimates in the diesel-engine segment for three wheelers and the opening up of the new market in the 4-wheeled small commercial vehicles which run on diesel engines.
With the 4-wheeled SCV segment expected to grow at 20% for the next 3 years, Greaves Cotton is betting big. The company, which also supplies engines to Piaggio, Mahindra and Scooters India, makes nearly 2.6 lakh engines every year from its automotive engine manufacturing plant.crackcrack