Greaves Cotton ventures into multi brand spares business
Date: 13 Jul 2016
Greaves Cotton Limited, one of
India’s leading engineering companies, has announced its foray into multi brand
spares business, an extension to its after-market services. The engineering
major, with a strong presence in the after-market services with a network of
over 3,000 outlets spread across the country will provide a complete range of
multi brand spares across categories like: engine, transmission, electrical,
rubber parts, lubricants and body parts.
Currently, the size of the
spare part markets in India is Rs. 3,500 crore in the space that Greaves Cotton
is addressing.
The company, will initially,
offer fast-moving vehicle and engine spare parts through its strong retail
network. This will be in addition to
generic parts. In the next phase even
relatively slow-moving parts will also be offered to customers thus becoming a
one-stop-shop for most parts requirements irrespective of the brand of
3-wheeler passenger and commercial vehicles.
The company will be the first
to offer spares across all categories in Three Wheeler (3W) Segment.
Commenting on the launch
company’s new venture, Sunil Pahilajani, MD & CEO said, “With an ever
increasing vehicle population in India, there is a vast untapped potential in
the after-market space. Also, there is an urgent need to counter the serious
threat from spurious parts dealers”
“To begin with, we have tied
up with more than 40 vendors for the supply of various spares. With our strong
and increasing network across the country, we are in a position to provide one
stop solution to our customers. Greaves has a strong distribution channel and
service network which can be utilized to serve customers of other brands. With minimal presence of other brands in this
space, we believe there is an opportunity to create value.”
Greaves Cotton will be using
its manufacturing facility and sourcing capability to produce and source
vehicle and engine parts. The company further plans to increase its footprint
by adding an additional 1500 outlets in the coming three to five years.