Greaves Cotton zooms 8% to see best session in over 2 months; Here's why

Shares of Greaves Cotton surged nearly 8 per cent on Friday after it announced a partnership with Chara Technologies to drive sustainable mobility with rare-earth-free motor technology. 

 

Greaves Cotton's stock rose as much as 8.39 per cent during the day to ₹188.68 per share, the biggest intraday gain since January 29 this year. The stock pared gains to trade 4.14 per cent higher at ₹181.29 apiece, compared to a 1.74 per cent advance in Nifty 50 as of 10:52 AM. 

 

The firm's counter has fallen 34.47 per cent this year, compared to a 3.7 per cent fall in the benchmark Nifty 50. Greaves Cotton has a total market capitalisation of ₹4,047.5 crore, according to BSE data. 

 

 

In an exchange filing on Wednesday, the company said it plans to revolutionise the electric mobility landscape by leveraging Chara’s technology to manufacture synchronous reluctance motors and controllers. 

 

The motors and controllers will be exclusively manufactured by Greaves and assembled at its facility in Aurangabad, catering to both automotive and non-automotive applications, including L5 three-wheelers, golf carts, and four-wheelers, it said in the statement. "The strategic partnership aims to combine Chara’s expertise in motor systems with Greaves’ scale in research and development and manufacturing." 

 

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  Further, eliminating the rare-earth magnets from within these components is expected to offer energy savings of up to 50 per cent and reduce CO2 emissions by 30 per cent, owing to the use of sustainable raw materials within them. "Our partnership with Chara Technologies aligns well with our vision and long-term strategy to leverage emerging technologies to build supply chain resilience and usher in manufacturing excellence in the electric mobility ecosystem, thereby positioning India as a key global player in clean mobility transformation," Arup Basu, managing director of Greaves Cotton, said in the statement. 

 

Greaves Cotton is a diversified multi-product and multi-location engineering conglomerate providing fuel-agnostic powertrain Solutions, E-Mobility Aftermarket & Retail Solutions, and Auxiliary Power.  

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The company's retail network comprises approximately 10,000 retailers and over 130 distributors. It operates across various sectors, including Automotive, Non-Automotive Aftermarket, Retail, Electric Mobility, Technology, and Finance. Currently, the company is engaged in manufacturing engines, engine applications, and trading power tillers, spares related to engines, electric vehicles, and infrastructure equipment, among others.

 

Earlier this year, the company's e-mobility division, Greaves Electric Mobility, introduced the Ampere Magnus Neo, an enhanced variant of its Magnus electric scooter. 

 

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