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Greaves plans to double Chennai unit output
Girish Chadha
NEW DELHI, January 4: The Rs 800-crore-plus Greaves Ltd, a LM Thapar group company, is doubling the manufacturing capacity of internal combustion engines at its Thoraipakkam plant, near Chennai.Greaves Ltd, which is the country's largest manufactures of diesel engines, proposes to enhance the manufacturing capacity of spark-ignition internal- combustion piston engines - diesel, petrol and kerosene versions - from one lakh to two lakh units a year. The company also plans to enhance the range to cover products under the ITC (HS) classification 840810, denoting engines and cylinder capacity greater than 250 cc.After the capacity and product range expansion, the company plans to cater to the need of the small and marginal farmers for pumpsets and small contractors for vibrators with its small range of products. With the higher range, the company plans to cater to the need of the industrial sectors, for the diesel generating sets.According to company sources, the proposed products will find use in
agricultural pumpsets, concrete vibrators, sugar-cane crushers, power sprayers, concrete mixers, portable generators and three wheelers. Greaves Ltd seeks to invest about Rs 6 crore in plant and machinery for the proposed expansion. The company, which has certain capacities available in its production lines in some operations, plans to add balancing machines wherever there is a capacity constraint.The company also proposes to farm out certain components, particularly in the areas where it has established reliable and quality vendors, the sources added. Besides the diesel engines manufacturing facility at Thoraipakkam, the company has similar manufacturing facilities located at Pune, Ranipet and Aurangabad. Greaves is also in the final stages of implementation of its tractor project at its factory at Ranipet, near Chennai. The company had entered into a technical collaboration with Same of Italy for the tractor project. The first tractor is likely to roll out of the factory by the second quarter of this
year. Greaves registered a fall of 20 per cent in net profit to Rs 10.3 crore for the first six month period of the current financial year. It had a net profit of Rs 12.9 crore for the same period last year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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