Greaves Cotton rose 3.33% to Rs 142.80 at 10:10 IST on BSE after the company said it ventured into multi-brand spares business.
The announcement was made during trading hours today, 12 July 2016.Meanwhile, the BSE Sensex was up 57.43 points, or 0.21%, to 27,684.12.
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.
The mid-cap company has an equity capital of Rs 48.84 crore. Face value per share is Rs 2.
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. The company has a strong distribution channel and service network which can be utilised to serve customers of other brands. All other brands are not doing enough in this space and the company believes there is an opportunity to create value, he added.
Greaves Cotton will be using its manufacturing facility and sourcing capability to produce and source vehicle and engine parts. The company further plans to increase its footprint by adding an additional 1500 outlets in the coming three to five years.
Currently, the size of the spare part markets in India is Rs 3500 crore in the space that Greaves Cotton is addressing.
Greaves Cotton's net profit rose 47.8% to Rs 42.74 crore on 3% rise in net sales to Rs 403.83 crore in Q4 March 2016 over Q4 March 2015.
Greaves Cotton is one of the leading engineering companies in India with core competencies in diesel/petrol engines, farm equipment and gensets. The company sustains its leadership through seven manufacturing units which produces world class products backed by superior R&D, comprehensive marketing and service/parts network.
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