Greaves Cotton gains after foraying into multi-brand spares business

Greaves Cotton has risen 3% to Rs 142 on the BSE after the company said it ventured into multi-brand spares business.

The announcement was made during trading hours today, 12 July 2016. On BSE, so far 46,000 shares were traded in the counter, compared with an average volume of 22,331 shares in the past one quarter. The stock hit a high of Rs 145 and a low of Rs 141.10 so far during the day.

The stock hit a record high of Rs 162.40 on 20 November 2015. The stock hit a 52-week low of Rs 114.20 on 29 February 2016. The stock was flat in the past one month till 11 July 2016, underperforming the Sensex's 3.72% rise during that period. The scrip had also underperformed the market in past one quarter, rising 8.82% as against Sensex's 10.41% rise.

Greaves Cotton announced its foray into multi-brand spares business, an extension to its after-market services. The engineering major, with a strong presence in the after-market services with a network of over 3,000 outlets spread across the country, will provide a complete range of multi-brand spares across categories like engine, transmission, electrical, rubber parts, lubricants and body parts.

The company, will initially, offer fast-moving vehicle and engine spare parts through its strong retail network. This will be in addition to generic parts. In the next phase even relatively slow- moving parts will also be offered to customers thus becoming a one-stop-shop for most parts requirements irrespective of the brand of 3-wheeler passenger and commercial vehicles. The company said it will be the first to offer spares across all categories in three wheeler segment.

Sunil Pahilajani, the company's MD & CEO said that there is a vast untapped potential in the after-market space. To begin with, the company has tied up with more than 40 vendors for the supply of various spares. With its strong and increasing network across the country, the company is in a position to provide one-stop solution to its customers.