New Delhi: Greaves Cotton will invest ₹500–700 crore over the next five to six years under its new ‘Greaves.Next’ strategy, as the 165-year-old engineering conglomerate embarks on a comprehensive business revamp spanning energy, mobility and industrial solutions.
“Our capex of ₹500–700 crore over the next five to six years is focused on building product development,” Parag Satpute, Managing Director and Group CEO of Greaves Cotton, told ETAuto.
The company is expanding its portfolio with electric motors and international collaborations, while continuing to strengthen its legacy ICE engine business. A key part of the investment will go towards flexible manufacturing lines that can support multi-fuel engine platforms.
On the energy side, Greaves Cotton expects its genset business to grow at 25–30 per cent year-on-year, supported by expansion opportunities in the Middle East and Africa.
Engine business outlook
Satpute said the company is pursuing multi-fuel, multi-segment growth with a strong emphasis on engineering and technology. “A diversified portfolio is our biggest strength. It allows us to navigate market cycles while steadily compounding growth,” he said.
The engine business accounted for 51 per cent of the company’s revenue in H1 FY26 across automotive and power segments, both of which continue to see rising demand. Satpute said diesel will remain significant, particularly in rural markets, even as demand grows for EVs, CNG and emerging hydrogen-based solutions.
“Energy solutions are becoming a growth engine for us. Demand for reliable, efficient gensets is rising across developing markets,” he added.
Mobility plans
To stay competitive amid rapid mobility shifts, Greaves Cotton is exploring strategic partnerships, digital integration and rare-earth-free technologies. The company expects a roughly 50:50 split between ICE and electric in the three-wheeler segment over the next few years.
Its electric mobility arm is ramping up R&D through collaborations with startups such as Chara Technologies for rare-earth-free motors and with European OEM Ligier Group for quadricycles. “Every new product we build is engineered with a global mindset. If it can succeed in Europe, it will excel anywhere,” Satpute said.
Working with startups gives the company access to specialised technology, while we offer scale, a customer base, and manufacturing capabilities. The move towards rare-earth-free technologies, he said, also helps address supply risks and geopolitical pressures.
Export strategy
Greaves Cotton is targeting overall growth of 16–20 per cent in the coming years, supported by new product launches and expansion into new geographies. The company aims to double its export contribution to 20 per cent by FY30, from the current 10 per cent. Key markets include Europe, North America, the Middle East and Africa.
“Our international business is gaining structural strength. We expect exports to play twice the role they play today within five years,” Satpute said.
