In an interview with ET Digital, Basavanhalli explains how and why Greaves Electric Mobility is concentrating on electric two-wheelers and three-wheelers sales to B2C and B2B segments. Edited excerpts:
Economic Times (ET): Greaves Cotton is a diversified engineering company that has been around for over 160 years. The engineering firm is now working to transform itself into a green-energy entity focusing on electric mobility. Why this change?
Nagesh Basavanhalli (NB): The impetus behind this transformation was to future-proof our organisation, which has a rich legacy. We recognised in 2016 that customer economics would shift after BSVI and there would be a rapid growth of alternative technologies. So we aimed to become fuel-agnostic and offer customers a range of choices. Furthermore, we understood the evolving landscape, where value capture would shift closer to the customer, necessitating a transition from a component supplier to a product and solutions provider. Over the last several years, we diligently executed our strategy, expanding from a three-wheeler diesel engine manufacturer to provider of last-mile mobility, emphasising sustainability and green technologies.
Driving this change required the development of new capabilities, transitioning from metal-based engineering to software and electronics-led engineering, evolving from a B2B to a B2B plus B2C company, and shifting focus from product to solutions. Talent acquisition, scaling up commercialisation-ready startups, retooling our manufacturing footprint, and selective capital infusion have all been instrumental in accelerating this transformation.
ET: Greaves Cotton recently announced that it was diversifying beyond internal combustion (IC) engines to sustainable mobility ecosystems. How is it doing that?
NB: The group has broadened its involvement in emerging industries and is exploring innovative business models as part of a concerted effort to establish a solutions-oriented approach, offering a comprehensive ecosystem stack in last-mile mobility. Under this strategy, the company has been restructured into three core businesses: Greaves Engineering is a fuel-agnostic powertrain manufacturer with strong OEM relationships; Greaves Electric Mobility concentrates on E2W and E3W sales to B2C and B2B customers; Greaves Retail emphasises extracting value throughout the lifecycle in the aftermarket sector, providing a range of parts from multiple brands through its extensive network of 9,000 retailers and 20,000 mechanics nationwide.
Additionally, the company has incubated two new businesses: Greaves Finance, financing EVs under the EV.fin brand; and Greaves Technologies, which provides engineering services to global OEMs.
Nagesh Basavanhalli, Non-Executive Vice-Chairman, Greaves Cotton
The strategic emphasis has been on identifying untapped opportunities in the value chain and swiftly establishing a presence by leveraging internal capabilities or acquiring new ones. Over the past five years, the company has made several strategic moves through acquisitions to expedite its foray into new areas. The new business now contributes over 40% of the company’s revenue. ET: What kind of sustainability initiatives is the company working on?
NB: The company is committed to sustainability and has embarked on various initiatives to impact the environment and communities positively. These endeavours align with our objective of shaping a brighter future, promoting a greener environment, and contributing to a healthier planet — in harmony with the younger generation’s aspirations.
Our manufacturing site in Ranipet, boasting an annual production capacity of 5,00,000 e-scooters, plays a pivotal role in our sustainability initiatives by meeting the rising demand for electric vehicles while strictly adhering to sustainability and safety standards. The inauguration of the Ranipet facility showcased a workforce of 70% women. Our site features a state-of-the-art sewage treatment facility, recycling water for both industrial processes and plant irrigation.
For Greaves, sustainability is at the forefront, emphasising recyclable pallets, moulded pulp packaging, and the repurposing of aluminium scrap briquettes. We integrate energy-saving practices, re-engineer products, and actively reduce waste. Using solar plants and efficiently managing treated water enhance our eco-friendly initiatives.
ET: How does Greaves Cotton maintain a balance between technological advancements and the preservation of traditional engineering expertise?
NB: Balancing tradition and innovation is paramount for maintaining our manufacturing industry leadership. With over 160 years of legacy, we value embracing modern technologies while preserving traditional engineering expertise. Our commitment to continuous learning is evident through workforce education and training investments. Our mission is to impact lives by creating a sustainable mobility ecosystem through custom fuel-agnostic solutions ranging from mechanical to electronic and mechatronics solutions.
Our research and development (R&D) department collaborates with external experts to stay innovative. We modernise manufacturing facilities without forsaking traditional engineering principles, enhancing efficiency and quality. Our flagship programme, DEEP (development, education, empowerment and progress), focuses on upskilling individuals from disadvantaged backgrounds and providing technical training for better job prospects.
