City-based engineering company Greaves Cotton, which earns a large chunk of its revenue from sales of automotive diesel engines, seeks to insulate itself from the slowdown in the automotive sector and the ensuing disruption due to BSVI emission norms by diversifying into multiple allied businesses.

The company has entered new business avenues such as manufacturing of marine engines and engines for defense and construction equipment, sales of spares, third-party after-sales servicing of three-wheelers and sales of electric three-wheelers. Greaves also acquired over 81% stake in electric two-wheeler maker Ampere Vehicles for a sum of ₹120 crore.The company has entered new business avenues such as manufacturing of marine engines and engines for defense and construction equipment, sales of spares, third-party after-sales servicing of three-wheelers and sales of electric three-wheelers. Greaves also acquired over 81% stake in electric two-wheeler maker Ampere Vehicles for a sum of ₹120 crore.

Consequently, the contribution of automotive engines to its topline has dropped to 40% from 60% in the past three years even as revenue grew at an annual rate of over 10% during the same period, managing director Nagesh Basavanhalli said. The company’s revenue at the end of FY19 stood at ₹1,988 crore.

“Diesel engine sales will de-grow as some of the cities move away from diesel to CNG or petrol. But from our revenue projection, we anticipate that between the combination of diesel, CNG and the non-automotive engines, our revenue should grow,” he stressed.

It has established over 350 retail outlets across the country that sell Ampere electric two- and three-wheelers, Greaves spares, and handle third-party three-wheeler servicing under the Greaves Care brand.

The company is also considering extending its know-how of being a component manufacturer to the domain of electric vehicles. “We are making sure that as the market for electric vehicles grows, we have a strategy in place to continue to play a role in a bigger and a wider way,” said Basavanhalli.

During past three fiscals, including the ongoing one, Greaves has invested about ₹275 crore towards development of the new businesses and upgrading its engine portfolio to BS-VI emission norms, Basavanhalli said.