Farm and construction equipment manufacturer Greaves Cotton is planning to increase export share in the company’s turnover to 10% in four years with increased penetration in growing overseas markets. At a turnover of around Rs 1800 crore, share of overseas sales stands currently at 2-3%.
“To begin with Indonesia, we have recently launched our products in South East Asia (SEA). We will expand our foot prints throughout this region with our customized genset and construction equipment. Also, we are intensifying our efforts to increase penetration in other countries to achieve the targeted share of 10% in the company’s turnover four years later,” said Sunil Pahilajani, Managing Director and Chief Executive Officer of Greaves Cotton Ltd.
Through tie-ups with local dealers and distributors, the company is selling farm and construction equipment in Tanzania (East Africa), West Asia and SAARC countries.
The company reported a net profit of Rs 155 crore on a turnover of Rs 1,873 crore for the financial year 2012-13, a rise of 13% and 8% respectively from the previous year. Of the total turnover, automotive engines contributes 60% while agri, construction equipment and power genset business consist of 17%, 8% and 15% respectively.
“Increasing footprints in the overseas markets is a natural means of growth of the company with an objective to reduce dependence from the uncertainty in the domestic market,” Pahilajani said without specifying the quantum of capex the company is looking at.
Also, Greaves Cotton is aiming to reduce raw material cost which consists of around 70% of production realisation.