Not Rated Greaves Cotton Ltd for the Target NA by Emkay Global Financial Services Ltd
We visited Greaves Electric Mobility’s (GEML) E-2W manufacturing facility in Ranipet, Tamil Nadu. Its E-2Ws are sold under the ‘Ampere’ brand, one of the top 6 E-2W players in India. Greaves Cotton (GCL) is a diversified auto-focused company with 2 broad segments: B2B (core businesses) and B2C (investee businesses). B2B comprises energy solutions, (gensets, after-sales and service), mobility solutions, (automotive engines and e-powertrains, engineered components, ER&D services, and aftermarket retail), and industrial solutions (large and small engines), while B2C comprises GEML and Greaves Finance. GEML contributed ~17%/15% of GCL’s FY26/FY25 topline. GEML’s market share declined to ~3.4% in FY25 from a peak of ~10.6% in FY23, largely due to the FAME-II subsidy crisis, but recovered to ~4.3%/4.9% in FY26/1QFY27. The management targets ~10% market share over the next 3Y, supported by new product launches (one every quarter), while remaining focused on profitability rather than volume growth. It targets EBITDA breakeven by FY28 (~-26% EBITDAM in FY26). The new Bengaluru R&D center, with 100+ engineers, should further strengthen technology capabilities and support market share recovery. GEML primarily caters to value-conscious daily commuters, middle-income families, and last-mile commercial buyers, with a focus on the value segment (Rs80k-Rs100k). Most of its portfolio is priced below Rs100k, while maintaining distinct product offerings across B2C/B2B segments. With a decade in the E-2W space, GEML has transitioned from Chinese-sourced components to 100% domestic value addition (excluding cells) since 2022 and adopted LFP batteries, prioritizing safety despite their higher weight and complexity vs NMC batteries widely used by incumbents. GEML delivered 9% revenue CAGR over FY22-26 with - 26% EBITDAM in FY26. The targeted breakeven by FY28 should be driven by scaleup, new product launches, and operating leverage.
KTAs
1) The Ranipet E-2W facility spans 32 acres with an installed capacity of ~480kpa units, providing significant headroom for volume ramp-up vs current utilization of <20%.
2) The plant is led by a seasoned team with extensive experience across the automotive sector.
3) GEML primarily caters to the value segment (Rs80k-Rs100k), with most of its portfolio priced below Rs100k, while maintaining distinct product offerings across B2C/B2B segments.
4) It is also expanding its B2B fleet presence through rental-led models, with existing deployments including JFL and Domino’s.
5) With a decade of E-2W manufacturing experience, GEML has transitioned from Chinese-sourced components to 100% domestic value addition (excluding cells) since 2022.
6) It has also transitioned to LFP batteries, prioritizing safety despite their higher weight and greater complexity vs NMC batteries widely used by incumbents.
7) Battery packs undergo testing across a temperature range of -40°C to 60°C and carry an IP67 rating, supporting durability across varied operating conditions.
8) Manufacturing capabilities include an automated robotic weld shop, modular single-bolt motor architecture, and SAP HANA-driven operations, while rework rates (<10%) are managed through manual checks and supervision.
9) The modular single-bolt motor design enables easier servicing, reducing technician effort and vehicle downtime.
10) GEML has built a PAN-India distribution network with 600+ touchpoints across 27 states, supporting wider market reach across both B2B/B2C offerings.
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