Archana Devadas Navaneeth Raghu Rohit Raju
Revathy P

Greaves Cotton Limited is one of the leading engineering companies in India with core competencies in diesel/petrol engines, gensets and construction equipment. The Company sustains its leadership through eleven manufacturing units which produce world class products backed by comprehensive marketing and service/parts network throughout the country.

Mr. Sunil Pahilajani has been appointed as MD & CEO Designate of Greaves Cotton Limited, a leading name in construction equipment, with effect from October 21, 2011.

Mr. Pahilajani's role as MD & CEO will entail overseeing the Company's operations and performance while guiding it to retain leadership position in engines and infrastructure equipment - the two core competencies of the Company. He will also provide impetus to the Company's ambitious growth plans.

Mr.Pahilajani was the CEO Designate in the company prior to his new appointment by the Board. A Mechanical Engineer from IIT, Roorkee, Mr. Pahilajani has 27years of rich industry experience including top management positions.

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More than half its peak net worth during the four preceding years had been eroded. Interest outgo stood at an all-time high. High production and manpower costs had reduced competitiveness. The company had symptoms of potential sickness. Greaves incurred a loss of Rs 92.61 crore in the financial year 2000/01, which was extended for 18 months.

Two-fold objective

The first was to focus on core businesses and exit from non-core ventures (such as the tie-up with SAME Group for tractors and engines), and suspend lossmaking units such as Rajasthan Polymers & Resins Ltd and eventually sell them off.  The company also sought to liquidate overseas subsidiaries, rationalize them and divest its stake in companies such as Piaggio Vehicles Pvt Ltd.  The second part of the objective was to reduce operating expenses.


It resulted in enhanced cash flow and a stronger balance sheet. This included monetizing a major portion of its shareholding in Crompton Greaves  The sale of surplus real estate  commercial property  non-core investments  Migration from manual system to automationincreased efficiency at lower cost  Adopt modern manufacturing practices  Invest in R$D

Focused on core business.  Cut costs.  Sold surplus assets.  Moved from stock push to demand pull

The results of this major exercise were seen in the next few years In 2003/04  The operating profit or EBIDTA was Rs 87.47 crore and profit after tax was Rs 21.73 crore.  The interest outgo declined 17.53 per cent, compared to 2002/03.  The exercise addressed myriad challenges such as cost reduction, increasing efficiency and improving margins, but all of this could be simplified into one single word: focus.


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Today, Greaves Cotton has transformed itself into an Rs 1,800 crore, multi-product engineering company. This is largely due to our increased focus. Greaves has embarked on a journey of profitability and sustained growth. It is eyeing product portfolio expansion and new customer acquisition. The lessons learnt helped it withstand the economic crisis of 2008.


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