Greaves Cotton Ltd is planning a capital expenditure of about Rs 110 crore this year. Out of which the majority will be on its electric two wheeler plant at Ranipet in Tamil Nadu, as told by its top official. Also, the electric two wheeler plant is expected to roll out its product by the end of this year.
Nagesh A. Basavanalli, Managing Director and Group CEO told IANS that they plan to invest about Rs 110 crore towards capital expenditure this year. About Rs.70 crore will be for the electric two wheeler plant at Ranipet to be commissioned by the end of this year. The capex will be funded out of its internal accruals.
The company 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 about one lakh units per annum will be produced and it will be increased to one million units over a period of time. The discussions are on for development of a vendor base for various components as well.
He also mentioned that the group has no immediate plans of consolidating the electric vehicle’s production at Ranipet. The company had sold 27,310 electric vehicles (two wheelers 22,661 units, three wheelers 4,649 units) last year up from 22,918 units (two wheelers 18,536 units, three wheelers 4,382 units) sold the previous fiscal.
With the sales volumes picking up, the group expanded the two wheeler showrooms to over 300 last year. The group’s electric two wheeler sales clocked Rs 180 crore revenue last year with the demand for high speed scooters picking up.