1

INDEX

CONTENT 1. Introduction 2. Company history 3. Vision/mission of company 4. Organizational structure 5. Financial performance and ownership structure 6. Market capitalization
7. No.of employees and turnover

PAGE.NO 3 4-5 6 7 8-12 13 14 15 16 17-23 24 25-26 27-28 29-31 32-33 33-34 35-37

8. Executive profile 9. Business operation and plat location 10. Joint venture and alliances 11. Business status 12. Pest analysis 13. Industry overview and analysis 14. SWOT analysis 15. Marketing strategies 16. CSR 17. New marketing opportunities

EXECUTIVE SUMMARY
The project on Accessing Market potential of Infrastructure equipments of Greaves Cotton Ltd and SWOT Analysis was carried out Greaves Cotton Ltd.. Infrastructure Equipments Department. Greaves Cotton Ltd. is a manufacturing giant of various machineries which we will come across subsequently. OBJECTIVES: To have a clear knowledge about Greaves Cotton Limited To reveal the market potential of Infrastructure equipments of Greaves Cotton Ltd To perform a SWOT analysis in respect to Greaves Cotton Ltd. TYPE OF RESEARCH: Descriptive. Exploratory. RELEVANCE OF THE STUDY: The study will focus on the existing market share and growth of the same in future regarding infrastructure equipments in eastern region. To assess the impact of various strategies and product features on sales volume. To access the customer satisfaction level regarding the products concerned. SCOPE OF STUDY: To extend the study considering all the department of Greaves Cotton Ltd. To study similar welfare schemes in other retail chains to get a comparative picture.

2. Introduction
Greaves Cotton Limited, established in 1859, is one of India's leading and well-diversified engineering companies. It manufactures a wide range of industrial products to meet the requirement of core sectors in India and abroad. The Company's core competencies are in Diesel/Petrol Engines, Gen sets, Pump sets and Construction Equipment. In the recent years, Greaves has made rapid strides towards globalization. The Company exports several of its products to various countries. Greaves has 10 Manufacturing Units located all over India, two overseas offices in U.K. and China and one subsidiary company in Germany. The Company's manufacturing plants are equipped with state-of-the-art production facilities, backed by in house R&D. An extensive sales and service network manned by highly skilled and dedicated workforce keeps Greaves in touch with its customers anytime, anywhere. The business operations of the Company are divided into various divisions strategically structured to ensure maximum focus on each business area and yet retain a unique synergy in the operations:
The Business Divisions are: Agricultural Equipment Automotive Auxiliary Power Construction Equipment Industrial Engines

3. Company History
2011 2009 Greaves sets up Light Engines Unit V at Aurangabad Greaves crosses two million mark in light diesel engines

2008

A state-of-the-art Technology Centre and manufacturing facility for new G Series engines opened in Pune. New Compaction Equipment plant opened in Gummidipoondi, Tamil Nadu. A new manufacturing facility for Agro Equipment inaugurated in Gummidipoondi, Tamil Nadu. Greaves second Transit Mixer manufacturing facility opened near Chennai. Greaves acquires Bukh-Farymann GmbH Diesel, Germany Greaves sets up Light Engines Unit IV at Aurangabad Greaves sets up Light Engines Unit III at Aurangabad. Greaves opens a new Technology Centre to design and develop new generation engines at Aurangabad. Eco friendly Light Diesel Engine complying with Bharat stage II (Euro II) emission norms launched. Millionth Light Diesel Engine rolled out. Introduced concreting equipment in technical collaboration with CIFA of Italy. Launched lightweight diesel engine model GL 400, complying with Bharat Stage I (Euro I) emission norms, for three wheelers. Launched Transit Mixer and Batching Plants. Acquired two Plants from Enfield India Ltd., to manufacture Petrol / Kerosene engines.

2007

2006 2005 2004 2001 2000 1996 1994

1986

1980

Greaves Joint Venture with Morganite Crucible Ltd., U.K. to manufacture Silicon Carbide Crucibles. Technical collaboration with BOMAG GmbH, Germany, to manufacture Vibratory Compactors. Greaves started manufacturing high power MWM diesel engines needed for gensets and marine propulsion.

1962

Greaves Power Transmission Unit set up in Pune in collaboration with David Brown Gear Industries, U.K., and pioneered the manufacturing of industrial and marine Gearboxes in India. Pioneering industrialist Lala Karamchand Thapar bought Greaves Became an Indian Company. Joint Venture with Ruston & Hornsby Ltd., U.K. and started manufacturing diesel engines in India Greaves Cotton entered into a Joint Venture with Crompton Parkinson of England to introduce ceiling fans and a range of other electrical products in India (now known as Crompton Greaves Limited). James Greaves and George Cotton founded the company.

1947

1939 1937

1859

4. Mission Statement:"To manufacture and market a wide range of high quality products, services and systems of world class technology to the total satisfaction of customers in domestic and overseas markets."

Organizational Structure
Board of Directors Mr. Karan Thapar [Non-Executive Chairman] Mr. Sunil Pahilajani [Managing Director & CEO] Mr. Vijay Rai Mr. S. N. Talwar Mr. V. Tandon Mr. S. D. Nayyar Bankers Solicitors Crawford Bayley & Co Chief Auditors Sharp & Tannan

Chief Financial Officer ABNAmro Bank Bank of India

B.R. Raju

Bank of Canara

Maharashtra Bank Corporation Bank ICICI Bank IDBI Bank Ltd Standard Chartered Bank W. Henriques State Bank of India Syndicate Bank Union Bank of India Vijaya Bank

Company Secretary

Registered Office

6th Floor, CG House Dr. Annie Besant Road Worli, Mumbai 400 030

6. Financial Performance and Ownership Structure 6.1. Balance Sheet

Particular Source of Funds Share Capital Reserves & Surplus Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities Application of Funds 03/11 48.84 477.21 526.05 2.29 3.22 5.51 531.56 06/10 48.84 392.42 441.26 0.37 4.79 5.16 446.42 06/09 48.84 359.79 408.63 9.27 35.11 44.38 453.01 06/08 48.84 326.38 375.22 18.82 30.40 49.22 424.44 06/07 48.83 250.44 299.27 33.03 6.44 39.47 338.74

Fixed Assets Gross Block Less : Accumulated Depreciation Provision for impairment of Assets Net Fixed Assets Capital Work In Progress Total Fixed Assets Investments Current Assets Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Total Current Assets Current Liabilities & Provisions Current Liabilities Provisions Total Current Liabilities & Provision Net Current Assets Miscellaneous Expenditure written off Total Assets

435.51 171.38 0.00 264.13 23.30 287.43 83.84 186.84 287.09 61.55 103.07 638.55 352.30 99.60 451.90 186.65 0.00

394.67 156.87 0.00 237.80 28.18 265.98 130.13 153.29 202.48 21.85 100.34 477.96 269.96 133.19 403.15 74.81 0.00

380.88 132.07 0.00 248.81 17.22 266.03 65.85 140.74 150.93 17.77 76.25 385.69 211.15 28.14 239.29 146.40 0.00

335.99 111.45 0.00 224.54 36.72 261.26 102.07 137.35 108.39 28.51 76.01 350.26 237.73 41.56 279.29 70.97 0.00

294.80 120.69 0.00 174.11 41.92 216.03 78.48 105.92 87.59 38.60 83.04 315.15 233.51 36.30 269.81 45.34 0.00

531.56 446.42 453.01 424.44 338.74

6.2. Profit And Loss Statement

Particular Income Sales Other Income Increase/Decrease in stocks Total Income Expenditure Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax 201103 1368.24 14.08 6.28 1388.60 1176.78 211.82 7.22 204.60 20.98 183.62 201006 1461.55 6.85 5.34 1473.74 1260.45 213.29 12.91 200.38 27.03 173.35 200906 1155.51 12.53 8.75 1176.79 1049.64 127.15 22.16 104.99 25.18 79.81 200806 1315.76 20.28 14.92 1350.96 1169.21 181.75 23.08 158.67 20.72 137.95 200706 1215.83 12.30 2.05 1230.18 1052.02 178.16 18.43 159.73 16.01 143.72

Provision for Tax Deferred Tax Fringe Benefit Tax Net Profit Adjustments Below Net Profit Statutory Appropriations Profit & Loss Brought Forward Appropriations Profit & Loss Carried Forward EPS (in Rs) Book Value (in Rs) Preference Dividend (in Rs) Equity Dividend in % Equity Dividend in (Rs.) Corporate Dividend Tax Contingent Liability Extra-Ordinary Items

54.48 1.86 0.00 127.28 0.00 0.00 134.25 67.44 194.09 5.21 21.37 0.00 75.00 36.63 5.81 88.98 9.42

56.15 -0.77 0.00 117.97 0.00 0.00 126.55 110.27 134.25 24.15 89.49 0.00 150.00 73.26 12.01 62.99 1.47

7.38 15.41 1.02 56.00 0.00 0.00 118.03 47.48 126.55 11.47 82.79 0.00 40.00 19.53 2.95 63.72 2.22

17.69 8.75 1.35 110.16 0.00 0.00 82.15 74.28 118.03 22.56 75.93 0.00 60.00 29.30 4.98 80.68 13.45

15.00 5.40 1.00 122.32 0.00 0.00 38.95 79.12 82.15 25.05 60.34 0.00 70.00 34.18 4.94 117.14 2.70

6.3. Financial Ratio

Particular Liquidity Ratios Debt/Equity Ratio Current Ratio Turnover Ratios Inventory Turnover Ratio Fixed Assets Turnover Ratio Debtors Turnover Ratio Interest Coverage Ratios Profitability Ratios Operating Profit Margin PAT/Total Income NPM (Net Profit Margin) Return on Capital Employed Return on Networth 201103 0.01 1.31 10.73 4.40 7.45 26.43 15.48 9.17 9.30 52.49 35.39 201006 0.06 1.34 9.94 3.77 8.27 14.43 14.59 8.00 8.07 41.81 28.04 200906 0.12 1.42 8.31 3.22 8.91 4.60 11.00 4.76 4.85 23.47 14.45 200806 0.13 1.21 10.82 4.17 13.43 6.98 13.81 8.15 8.37 42.70 33.11 200706 0.19 1.19 12.54 4.72 13.54 8.80 14.65 9.94 10.06 54.00 48.34

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6.4. Cash Flow

Particulars Mar' Jun' Ju 11 10 n'0 9 183. 68 Ju Jun'07 n' 08

Profit Before Tax

173 79. 13 143.72 .40 87 8. 01 174 18. 11 158.55 .97 31 4. 82 87. 77 83. 12 4.0 8 14. -81.12 69 72 .2 9 -72.35 43. 52 61 .6 2 5.08 10. 10 61 .0 9

Net Cash Flows from Operating 116. Activity 60 Net Cash Activity Used in Investing 13.2 9

Net Cash Activity

Used

in

Financing 90.1 9

Net Inc/Dec in Cash and Cash 39.7 Equivalent 0

11

Cash and Cash Equivalent 21.8 -Beginning of the Year 5 Cash and Equivalent - End of the 61.5 Year 5

17. 77 21. 85

28. 38 33.52 51 .6 0 17. 28 38.60 90 .5 1

6.5. Share Holding Pattern

Holders Name Promoters N Banks Mutual Funds Financial Institutions General Public Foreign Institutions Other Companies Foreign Ocb Foreign NRI No. of Shares 125972266 40216078 31036760 21068102 17368037 7186306 775000 584246 %Share 51.58% 16.47% 12.71% 8.63% 7.11% 2.94% 0.32% 0.24%

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7. Market Capitalization 7.1. Top Companies in India by Market Capitalization - BSE

Company Name Cummins Greaves Cotton Kirloskar Oil Swaraj Engines Kirloskar Ind Last Price 358.90 80.15 124.00 414.00 254.95 % Chg 4.61 1.52 3.08 0.13 0.97 52 wk High 566.30 100.85 232.90 503.70 400.70 52 wkLow 322.00 69.50 107.00 349.00 226.00 Market Cap (Rs.cr) 9,948.71 1,957.32 1,805.80 514.18 247.52

7.2. Top Companies in India by Net Sales BSE

Company Name Cummins Kirloskar Oil Greaves Cotton Swaraj Engines Kirloskar Ind Last Price 358.90 124.00 80.15 414.00 254.95 Change % 15.80 3.70 1.20 0.55 2.45 Change 4.61 3.08 1.52 0.13 0.97 Net Sales(Rs. cr) 3,945.44 2,392.99 1,253.32 360.63 4.14

7.3. Top Companies in India by Net Profit BSE

Company Name Cummins Kirloskar Oil Greaves Cotton Kirloskar Ind Swaraj Engines Last Price 358.90 124.00 80.15 254.95 414.00 Change % 15.80 3.70 1.20 2.45 0.55 Change 4.61 3.08 1.52 0.97 0.13 Net Profit(Rs. cr) 590.99 173.73 127.28 55.34 43.91

7.4. Top Companies in India by Total Assets BSE

Company Name Last Price % Chg Gross Block Net Block CWIP Total Assets Cummins 358.90 4.61 914.45 441.07 0.00 1,814.69 Kirloskar Oil 124.00 3.08 1,052.47 590.65 19.30 1,123.48 Greaves Cotton 80.15 1.52 435.51 264.13 23.30 531.56 Kirloskar Ind 254.95 0.97 43.91 26.52 0.00 531.16 Swaraj Engines 414.00 0.13 77.63 23.95 2.47 152.22

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8. Size in terms of employee & turnover

Number of Employees: Trade & Market North America South America Western Europe Eastern Europe Eastern Asia Southeast Asia Mid East Africa Oceania Above 1000 People

Main Markets:

Total Annual Sales Volume: Above US$100 Million Factory Information Number of R&D Staff: Contract Manufacturing:

Above 50 People OEM Service Offered

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9. Executive Profile
Name Designation/ Nature of Duties Gross Remuneration (Rs.) Qualifications Experience (years) Date of commencement of employment Age (years) Last Employment held Name Designation/ Nature of Duties Gross Remuneration (Rs.) Qualifications Experience (years) Date of commencement of employment Age (years) Last Employment held Name Designation/ Nature of Duties Gross Remuneration (Rs.) Qualifications Experience (years) Date of commencement of employment Age (years) Last Employment held Name Designation/ Nature of Duties Gross Remuneration (Rs.) Qualifications Experience (years) Date of commencement of employment Age (years) Last Employment held ::::::::::::::::::::::::::::::::Ashok Kumar P. L. General Manager 27,09,228 B.E. (Mech), PGDBA 29 22.02.2007 54 Sundram Fasteners Ltd, Mfg. - CED Bhattacharya S. Vice President 54,14,812 B.E. (Mech) 28 01.12.2003 51 R&D - AD Association of India Chakravarty D Group General Manager 38,78,898 B.Sc. Engg (Mech) 25 19.09.2005 47 Fairfield Atlas Ltd., Mfg. - AD Chaudhary R. P. Vice President IED 37,46,807 B.E. (Mech) DSM 28 29.05.2007 51 International Auto Ltd.

10. Plant Locations:-

15

Head Office Regional Offices Branch Offices

:::-

Mumbai Mumbai, Delhi, Kolkata, Chennai Ahmedabad, Ranchi, Bengaluru, Kochi, Hyderabad, Jaipur, Lucknow, Patna, Guwahati, Chandigarh, Coimbatore and Bhubaneshwar Pune(1), Auragabad(3), Gummidipoondi(4), Ranipet(1), Germany(1) Germany, UK, UAE, China

Manufacturing Unit

:-

Overseas Offices/Distribution Networks Over 1200 dealers throughout India

:-

11. Joint Venture and Alliances

1922

16

1958

The Comp. was incorporated on 29th March, as a Private Ltd. company. It was converted into a Public Limited Comp. on 8th May, 1950. The main objects of Comp. is to act as merchants, engineers & contractors. The Comp. has a large number of associated & subsidiary companies manufacturing various items of electrical & machinery products. It also acts as concessionaires for a large number of firms in U.K. The company manufactures paper cones & tubes for cotton textile industry & diamond drilling bits. Equity shares were issued without payment in cash. Greaves Dronefield Comp. was floated in collaboration with Dronsfield Brothers Ltd., Oldham for manufacture of their well-known 'Atals' brand emery fillets. It was registered on 31st December, & it went into production soon thereafter. Mather Greaves Comp. was registered on 6th August, for manufacture of calender bowls. The Comp. concluded a technical collaboration agreement with Mandrills Ltd., of Melbourne, Australia for manufacture of diamond tools. The Comp. was floated in collaboration with David Brown Industries Ltd., for manufacture of Radicon worm reduction gears & geared motor units & was registered on 6th June. Later, the Comp. was also licensed to manufacture David Brown marine gear boxes. Draton Greaves concern was floated in collaboration with Drayton Regulator and Instrument Co. Ltd., of Middlesix for manufacture of steam traps & regulators & registered on 19th August. After consolidating the manufacture of calender bowls, the Comp. embarked on the production of Schriner calenders, stenter clips, mangles, printing machines, etc. On 22nd April, it became a subsidiary of Comp. by virtue of such allotment of 425 shares of Rs. 100 each to the Comp. in terms of collaboration agreement. Mather Greaves Ltd., undertook the entire marketing of its products resulting in the termination of their Sole Concessionaires Agreement with Greaves Cotton and Co. Ltd. The other subsidiaries are Greaves Leasing and Finance Ltd., Rajpath Investment limited Cannation Investment limited Greaves Midwest Engineering Co. limited & SIDVIM Ag. Greaves Lombardini Comp. in collaboration with Lombardini Motori of Italy promoted Greaves Lombardini Ltd., for the manufacture of diesel engines. Greaves Lombardini Ltd., was incorporated on 21st May, under the name & style of Greaves Diesels Ltd., & the name was subsequently changed to the present one. Consumption of emery fillets in the home market during the last quarter of 1982 & the beginning of 1983 was less due to prolonged textile strike in the country.

1959

1960

1963

1965

1967

1975

1982

17

1983

5% tax-free Pref. shares made 13.5% taxable from 1.7.1983. 25,000-6% Pref. share redeemed on 31.3.1984. 2,12,625 Bonus Equity shares issued in prop. 1:2 on 23.3.1984. Greaves Lombardini Ltd., was merged with Greaves Cotton and Co. Ltd. Consequent upon the purchase by Greaves Cotton and Co. Ltd., of 50% shares held by Dronsfield Brothers Ltd., U.K. Greaves Dronsfield Ltd., became a wholly owned subsidiary of Greaves Cotton and Co. Ltd. A technical collaboration agreement was entered into with David Brown Gear Industries, U.K., for manufacture of hardened and profile ground helical gear boxes. Government gave its approval. 20,265-15% Pref. & 19,250 No. of equity shares allotted without payment in cash to members of Greaves Lombardini, limited on its merger. These Pref. shares redeemable at 1.7.1996 but before 15.6.1998 at the company option. 25,000-15% Pref. C shares paid off. 3,28,562 Bonus Equity shares issued in proportion 1:2. To improve exports further, it was proposed to open offices in the USSR & East Africa. The works at the Nasik plant resorted to go-slow & the Comp. was forced to declare a lock-out of the plant effective from 14th June, 1990. The lockout was lifted on 20th October, 1990. During the year, the Comp. introduced Greaves portable light weight diesel Genset viz., Greaves-GD3000. The Comp. entered into an understanding with the Rajasthan State Industrial Development & Investment Corporation Ltd. [RIICOs] for setting up of unit at Abu Road in Rajasthan for manufacture of ABS Resins in collaboration with Technochim and Plastpererabotka [Russian partnerss]. The Comp. undertook to set up a 3-wheeler autorickshaw manufacturing unit at Baramati, Maharashtra. During the year, the Comp. undertook to increase existing capacity of light weight engines unit at Aurangabad to 32,500 units from the existing 22,500 units. Greaves Chitram, Ltd., [Chitrams] was amalgamated with the Company. The erstwhile shareholders of Chitram were allotted one equity share of Greaves Cotton Co., Ltd., for every 412 shares held by them in Chitram. During the year, the Comp. had converted the representative office at Singapore into a trading office. The Comp. proposed to set up a joint venture Comp. with Frabelle Fishing Corporation, Philippines to undertake deep sea tuna fishing in the exclusive economic zone of territorial waters of India. Subject to necessary approvals being obtained, Greaves Semiconductors limited [GSLs], a subsidiary of company, was proposed to be amalgamated with the Comp. with retrospective effect from 1st April 1989.

1984

1985

1988

1989

1990

1991

18

During April-May, the Comp. offered 32,89,488 - 12.5% secured fully convertible debentures of Rs. 40 each on Rights basis in the proportion 1 debenture : 3 equity shares held [all were taken ups]: Additional 4,93,341 debentures were allotted to retain over subscription. Simultaneously, another 1,64,475 - 12.5% debentures of Rs. 40 each were issued to employees including Indian working directors of Comp. on an equitable basis [only 75,200 debentures taken ups]. UN subscribed portion of 89,275 debentures allowed to lapse. Each debenture of Rs. 40 was fully & automatically converted into one equity share of Rs. 10 each at a premium of Rs. 30 per share after 12 months from the date of allotment of debentures. Accordingly, 38,58,029 No. of equity shares were allotted in July 1992. 50 No. of equity shares allotted without payment in cash to members of Greaves Chitram Ltd., on its merger. The company operations at Marol was suspended in October and the land & building had since been disposed of. The Nashik plant was reported to be suffering from lack of profitable orders from the Government sector. Efforts were on to diversify the product portfolio. The power transmission unit II [erstwhile David Brown Greaves Ltd.s] Falta, W. Bengal was commissioned. During November the Comp. offered share on 1,37,14,949 No. of equity shares of each at a premium of Rs. 70 per rights basis in the proportion 1:1. [all were taken ups]. Another 6,85,747 No. of equity shares of Rs. 10 each at a premium of Rs. 70 each were offered to the employees of Comp. on an equitable basis [only 26000 shares taken ups]. The Comp. offered for sale 26,82,240 No. of equity shares of Rs. 10 each of Greaves Fosico limited at a premium of Rs. 60 per share. Rajasthan, Polymers and Resins Ltd., an associate Comp. offered on preferential basis 12,68,000 - 14.5% secured redeemable partly convertible debenture of Rs. 25 each of Rs. 10 of face value was to be converted into 1 equity share on allotment of debenture Rs. 15 was to be redeemed. Subject to necessary approvals being obtained, the company proposed to issue 1473,81,765 bonus equity shares in proportion 1:2. 28,552 No. of equity shares allotted to shareholders of erstwile Greaves Ltd., on its amalgamation 19,91,903 No. of equity shares allotted on amalgamation of Ruston and Honnsberg limited & David Brown Greaves limited within company. 137,40,949 Rights shares issued to shareholders & employees. The Comp. entered into a joint venture agreement with a few parties in Singapore for trading in Vietnam & other parts of the world. A new Comp. was registered in Singapore in the name of Pacific Greaves Pte. Ltd. It was also proposed to set up a joint venture Comp. with overseas consortium partners for installation & developed of part infrastructure in Russia. Effective 19th August, the name of Comp. was changed to Greaves Ltd., from Greaves Cotton and Co. Ltd. 38,58,029 No. of equity shares [prem. Rs. 30s] was allotted in conversion of 12.5% fully convertible debs. 28,552 No. of equity shares allotted to shareholders of erstwhile Greaves Semi-Conductors limited on its amalgamation. 19,91,903 No. of equity shares allotted on amalgamation of Ruston and Hornsby Ltd. and David Brown limited with the company. 137,40,949 Rights equity shares allotted.

1992

1993

19

1994

Two new products were launched viz., diesel three wheelers and sale of HIPS resins & partly from the petrol engine unit at Thoraipakkam & Commencement of production of diesel engines at Ranipet, both acquired in January. The Comp. undertook a project for manufacture of rolling cutter rock bits, used largely in oil well drilling & also for waterwell drilling in collaboration with Smith Tool Company, a division of Smith International, Los Angeles, U.S.A. For this purpose a new factory was set up in the MIDC Industrial Estate at Nasik. Effective 31st January, the Comp. acquired the Thoraipakkam properties of Enfield India Ltd., Chennai. The Comp. undertook to invest in the Ranipet complex to manufacture light diesel engines which was originally planned for at Aurangabad. The Comp. proposed to enter the field of agricultural tractor & associated diesel engines manufacture in Rankipet, Tamil Nadu in collaboration with a well known Italian manufacturer. The Comp. has signed a licence agreement in June to avail technology from SAME for manufacture of certain range of tractors. 147,38,176 shares allotted as Bonus shares in prop. 1:2. The Comp. achieved 94% of installed capacity in the manufacture of Greaves Garuda diesel 3-wheeler. However, the original plans for introducing the eco-friendly 4-stroke petrol engined 3-wheeler couldn't materialise during the year. The Comp. proposed to set up an industrial park of international standard at Ranjangaon near Pune in collaboration with Overseas consortium partners & in association with Maharashtra Government agencies viz., the SICOM and MIDC. The Comp. proposed to introduce an eco-friendly 4-stroke Petrol engined 3 wheeler. The Comp. entered into a technical collaboration with SAME Spa, Italy for manufacture of agricultural tractors & signed a joint venture agreement with SAME for manufacture of diesel engines for tractors & other uses. The Comp. proposed to increase the capacity for manufacture of diesel generating sets at Diesel Engines Unit in Chinchwad, Pune to cater to the enhanced demand in the market. The Comp. entered into a joint venture agreement with Same Deutz Fahr SPA of Italy for manufacture of diesel engines. Greaves Ltd, the engineering arm of Thapar group, is entering into the automotive sector with tractors & two models of three-wheelers - one a six-seater diesel versions & the other a three-seater petrol model. The production capacity of high speed diesel engines manufactured at Aurangabad & Ranipet will be increased form 60,000 engines per annum to 100,000 engines per annum. The Comp. is to launch the Garuda six-seater diesel three-wheeler which conforms to 1996 emissions norms & will be shortly introducing the Garuda four-stroke petrol threewheeler. In the transportation division, the manufacturing capacity of the diesel run three wheeler garuda is proposed to be increased to 60,000 from the present 24,000. The Comp. proposes to launch the production of petrol version of Garuda in the first quarter of 1997-98 incorporating new features such as electric start and four-stroke engines.

1995

1996

1997

20

Greaves proposes to later launch a six-seater diesel vehicle & flat bed load carriers in the country. Piaggio, the Italian auto major, is close to tying up with Greaves for manufacturing a range of diesel three-and four-wheelers in the country. The two companies signed a memorandum of understanding & have already initiated a joint feasibility study. The Power Transmission Division [PTDs] of Comp. is on the verge of signing two joint ventures - one with the Singapore-based Team Asia for semi- conductors & another with an Italian Comp. - Bonfigliloe - to manufacture higher ranges of transmission equipment & various types of gear boxes, which are applicable in heavy engineering & earth-moving vehicles. Rajasthan Polymers and Resins Ltd [RPRLs] is to be merged with Greaves Ltd with effect from April 1, as part of comprehensive rehabilitation package approved by Board for Industrial & Financial Reconstruction [BIFRs]. Greaves Ltd a LM Thapar group company, is doubling the manufacturing capacity of internal combustion engines at its Thoraipakkam plant, near Chennai. Greaves Limited, which is the country largest manufacturer of diesel engines, proposes to enhance the manufacturing capacity of spark ignition internal combustion piston engines diesel, petrol land kerosene versions-from one lakh to two lakh units per annum. The Italian automobile major has an existing tie-up with Greaves for manufacturing the Ape range of three wheelers in the country. Greaves Ltd, is the largest manufacturer of diesel engines with factories located at Pune, Aurangabad, Ranipet & Thoraipakkam, Chennai. Greaves has also emerged as the largest manufacturer of IC engines in the country with a production of 1.8 lakh engines. A memorandum of understanding [MoUs] was signed between the Thapar Comp. & the Dutch transmission equipment giant; BTR European Holdings, in New Delhi. The Comp. entered into a memorandum of understanding [MoUs] with BTR European Holdings of Netherlands [BTRs] recently to float a subsidiary which will be promoted in India by BTR or its associated companies. Greaves Limited, the Thapar group company, launched a 50HP tractor, 'Same' Greaves 503, in Chandigarh. Greaves Ltd has joined hands with Piaggio S. P. A. of Italy to locally produce in India compact engines with in-built gearboxes for three-wheelers which the two Companies would be manufacturing under their joint venture. Leading Auto manufacturer Greaves Ltd has tied up with two Chinese companies to manufacture small tractors [power tillerss] & plans to sell the product at one third the price of a normal tractor. Greaves has entered into an agreement with a Chinese company Chang Chai & has also entered into an alliance with Dangefeng Agricultural Machinery Group Corporation for manufacturing rest of machinery & body of power tiller. Greaves Ltd, engineering arm of Thapar group, has launched a new range of industrial gearboxes for industry, making it the only Comp. to offer a wide end unique range of gearboxes for different industries. The Comp. has set up a plant at Baramati, Maharashtra, with a capacity to manufacture 25,000 vehicles every year. The Comp. currently produces the `APE' range of diesel three-wheelers under technical guidance from Piaggio. The Comp. has just launched its APE range of three-wheelers in the National Capital Region [NCRs] of Delhi.

1998

1999

21

Greaves, which had entered the industry with 50 hp tractor during end-1998, will manufacture `Solaris' tractors in the range of 25, 35, 45 hp at its Ranipet plant in Tamil Nadu. Greaves Ltd has decided to set up a 50:50 joint venture company with its existing technical collaborator Same Deutz SpA of Italy to manufacture tractors ranging from 25 hp to 70 hp. The capacity of petrol/kerosene engines manufactured at Chennai will be increased to 120,000 engines from the current capacity of 80,000 engines. The Comp. have approved, in principle, the amalgamation of Rajpath Investments limited a wholly owned subsidiary of company with Carnation Investment limited also another owned subsidiary of the company. The Greaves engineering arm of Thapar Group, has entered into a technical collaboration with Italian Construction equipment giant Cifa Spa for manufacturing ready mix concrete equipment. Greaves limited has converted its tractor manufacturing operations in Ranipet near Chennai, which was earlier a technical collaboration with SAME of Italy, into a 50:50 joint venture with the Italian tractor major. Italian diesel engine major, Lombardini acquires engine manufacturing facility of Thapar group company, Greaves, at Aurangabad for a consideration of Rs 11 crore Greaves Ltd has informed that Mr K K Nohria has resigned from the office of Director of Company, in view of his pre-occupation.The Board of Directors of Comp. at its Meetings held on March 21, 2002 has appointed Mr Vijay Rai as a Director to fill the casual vacancy caused by resignation of Mr K K Nohria. Italian auto firm Same Deutz Fahr Group SPA has taken over its Indian partner, Greaves Ltd, for Rs 26.9 crore from its two tie-up, one to manufacture tractors & the other for tractor engines Solaris Chemtech Limited acquires 950,000 equity shares of Rs 10 each of Crompton Greaves Limited from Greaves Ltd., stake increases to 10.83% in the company Greaves Ltd to go back to its erstwhile name Greaves Cotton Greaves Cotton, part of B M Thapar group has appointed Karan Thapar as the chairman of company Greaves Cotton signs MoU with Premium Energy Transmissions Inks MoU with Corporation Bank for financing farm machines to farmers Launches of an all-new Greaves Metro Pump for construction industry Greaves Cotton unveils four new products Greaves Cotton Limited has appointed Mr. Vikram Tandon as a Director of Comp. to fill the casual vacancy caused by resignation of Gautam Thapar.

2000

2001

2002

2003

2004

2005

2007

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Greaves Cotton Ltd has informed that the Board of Directors of Company, has appointed Mr. S D Nayyar as Additional Director of Company, effective from September 26, 2007.

12. Business Status

Following two years of the global economic downturn, the world seems to be regaining economic stability. In the developed world, there are definite signs of a recovery. By contrast, in the developing world, China, India and other Asian countries are registering strong growth with robust domestic markets. The Indian economy grew at 10.4% in the calendar year 2010 as reported in IMFs World Economic Outlook. Household income has increased significantly resulting in higher consumption and demand. Manufacturing and other core sectors registered good growth which led to an overall buoyancy in the market. The infrastructure sector however, although performing better than the previous year, is yet to achieve its 2007-08 performance level. The financial period 2010-11 was a year of opportunities particularly for the auto industry. This resulted in our Automotive Division reporting excellent performance. Against this backdrop, Greaves Cotton was able to achieve good growth in both top and bottom lines, reporting a Profit after Tax of Rs. 127.28 crores for financial period of nine months ended March 31, 2011. This PAT for the nine month Financial Year is higher than the PAT for the 12 month FY 2009-10. The Companys Balance Sheet is quite healthy with practically no debt. Our relationship with customers remains strong on account of our proven products, evolved in-house with contemporary technology and backed by a wide sales and service network. Going forward, there are many challenges before the Government as it combats high inflation. RBI has already effected several increases in interest rates. Rising crude and other commodity prices are also a matter of serious concern which will certainly have an impact on corporates profitable business growth. However, overall demand is strong, and

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therefore, I am cautiously optimistic about FY 2012 with respect to the potential of growth in markets and the business environment as a whole. Corporate sustainability has become an important agenda for the Industry. Your Company also clearly sees a trend of business sustainability. Consequently, our emphasis for the future is on continued sustainability and capital efficient growth. In order to meet the growing demand from the auto sector, we have started the process to set up a new manufacturing facility at Shendra, Aurangabad, which will be operational in July this year. In addition, the Company also plans to invest significantly in building engineering and R&D capabilities across all its businesses. Recognising that our employees are our core strength, we are focusing on developing their capabilities. In addition to the ongoing programmes, our Human Resources Team has undertaken various development initiatives to enhance the skill - sets of high potential employees. To accelerate the pace of sustainable growth, Greaves Cotton has chalked out its strategic moves for the next three years. I am confident that the Management Team with the invaluable guidance of the Board will achieve its Goals & Objectives.

13. PESTEL ANALYSIS

PESTEL analysis for Greaves Cotton Limited

13.1. Political Factors: 1. Taxation Policies: CE machinery is mobile and is transported to different locations countrywide depending on the requirement. However, due to different taxation structures in different states like different rates of VAT, entry taxes, octrois, local levies etc., the prevailing entry permits and RTO rules, the manufacturers and the customers face lot of obstacles in running a smooth business while moving across the country. 2. Foreign Trade Regulations: Another intriguing factor is related to imported machinery. In India, the imported machinery can easily be RTO registered anywhere without the need of adequate testing at State Transport Authorities in different states, while, the machinery manufactured in India has to be tested as well as registered this naturally does not provide level playing field for Indian manufacturers. 13.2. Economical Factors: 1. Business Cycle: Indian construction equipment industry has gone ahead and built up big capacities looking into the boom in infrastructure. 2. Fluctuations in prices of inputs: Steel prices have gone up by over 25 per cent. Steel is one of the major inputs for all construction equipment and their aggregate inputs. Hence there is a major impact of input cost increase for all Indian construction equipment manufacturers. 3. Exchange Rate: The rupee till recently was hardening against world majors. The recent loss in strength of the rupee has also made inputs of construction equipment costlier. 4. Interest rates: Due to inflation Government and RBI has tightened liquidity by increasing CRR and planning to increase interest rates and this would have an effect of reducing funds available for not only consumption but also investment. This would adversely affect

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demand for construction equipment. It has already affected demand for smaller equipment like backhoe loaders. 13.3. Social Factors: 1. Geographical Location: As these machineries are very heavy, they are not useful in hilly areas or fertile land. 13.4. Technological Factors: 1. Government and industrys focus on technology: Technology for manufacturing special machineries like earth moving equipments is not available in India. Therefore it is necessary to permit the import of technology from international reputed manufactures. 2. Speed of Technology Transfer: As seen in the recent years foreign engineering companies are planning to set up manufacturing base in India. Already 20 have either set up their plant her whereas are being represented through dealers. 13.5. Environmental Factors: 1. Some equipment is used for mining and excavating purpose which cause imbalance in layers of land which may enhance probability of earthquake. 2. These machineries are running by diesel or oil, which create noise and air pollution. 13.6 Legal Factors: 1. Policies related to Import and Export: Government of India has already initiated several steps for arresting the inflation spiral and support growth. For instance, import duties on steel are being reduced or eliminated. Export of steel is being discouraged so as to improve steel availability for domestic consumption.

14. Industry Overview and Analysis 14.1. Porters FIVE FORCES ANALYSIS
Michael Porter's famous Five Forces of Competitive Position model provides a simple perspective for assessing and analyzing the competitive strength and position of a corporation or business organization.

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Porters five forces analysis

14.1.1 Entry Barriers In construction equipment industry threat of new entrants is very low because this industry requires huge capital investment for setting up manufacturing unit as well as working capital for manufacturing machineries. For manufacturing construction equipments knowledge of advance technology is essential which also creates entry barrier. 14.1.2 Bargaining Power of Buyers Before 1960s when competition among players is very little, buyers had limited bargaining power. But after 1991 due to entry of new players this trend is changing and now buyers have moderate bargaining power. 14.1.3 Threat of Substitutes Threat of substitute is very low because every construction equipment has specific purpose hence it can be not easily replaced by anyone else. Substitution is only possible through value addition like increase in efficiency or new technology etc. 14.1.4 Bargaining Power of Suppliers Demand for construction equipment is increasing day by day due to increase in infrastructural and mining activities where as supply of such equipments is limited so suppliers have high bargaining power. 14.1.5 Competitive Rivalry within an industry Competition among suppliers is moderate because demand is high and supply is low. There is competition between players for better maintenance service, timely delivery, Price etc.

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Barriersof Threat specific uppliers have notserviceplayers power of buyers leading to delayed Earlier, manufacturers/sellers recognizedbecause kept pace the growth demand, Every construction Inter-firm hasheld in suppliers of huge Price and Bargaining differentiators players equipment rivalry Well-established are withand a of sway purpose MODERATE addition through in MODERATE to competition technology, comfort maintenance etc. entry substitutemarket share of present manufacturers eliveries demand imports can throughHIGH Substitutesin sharp differentiation the Lack could only be reduce leading value Cheaper LOW mport of some criticalof newdemand this in nearexpected to change With the entry components players, price Complete substitution may not happen trends future. Product replacement or enhancement is Increasing growth in Volatility of steel pricesfor construction equipment succeed, as technology is the major entry Manufacturers impacting production cost in possible demand now are providing end-to-end future Huge Players with technological know-how can barrier Capital intensive industry

Porters five forces analysis for Greaves Cotton Limited

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15. SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. Strengths: characteristics of the business or team that give it an advantage over others in the industry. Weaknesses: are characteristics that place the firm at a disadvantage relative to others. Opportunities: external chances to make greater sales or profits in the environment. Threats: external elements in the environment that could cause trouble for the business. 15.1 Strengths 1. Easy Availability of Raw material: India is the fifth-largest producer of crude steel in the world (2008), with a production volume of 54.5 million tonnes. 2. Strong Government focus: The Union Budget 201011 has allocated US$ 36.16 billion to the infrastructure sector, reflecting the Government of India (GOI)s strong focus on the development of Indias infrastructure. 3. Import of technology: Many German engineering companies are planning to setup manufacturing base to India. In 2002, India imported German construction machinery worth 61 million Euros about 11.8% higher than 2001. 4. High Growth potential: Government expenditure on infrastructure is likely to result in increased construction expenditure of nearly US$ 253. 94 billion (INR 12,189 billion) between 200809 and 201213). 15.2 Weaknesses: 1. Capital intensive: Construction Equipment industry is capital intensive industry. Capital required for fixed expenses like setting up industrial unit, procuring machinery etc is high as well as raw material expenses like steel is also very high. 2. Lack of innovation: To develop India as a major manufacturing hub it is necessary to focus on R & D. But in the case of construction equipment the focus on R & D is less compare to the global counter parts. With few exceptions, technology is imported from global partner or parent companies, rather than developing it indigenously here. 15.3 Opportunities: The construction equipment industry in India has evolved with growing domestic demand. 1. Infrastructural Development: Earth Moving and construction machineries are linked with infrastructural work like construction of roads, mining of coal and minerals, Power projects and ports. With Governments emphasis and priority on the development of infrastructure this industry has good growth prospects in the coming years. Industry is showing enormous progress and has grown both in size and diversity.

28 2. Capacity Expansion: Capacity expansion in the steel, cement, oil refining and power

sectors to meet growing infrastructure investments in India, is also expected to generate demand for construction equipment. 3. Export Opportunities: The export opportunity is expected to grow on the back of rising cost pressures on developed countries and due to the emergence of low-cost competitive suppliers and original equipment manufacturers (OEMs) in India. 15.4 Threats: 1. Government have drawn robust plan for infrastructure development but still poor quality of existing infrastructure acts as a bottle neck as significant resource is utilized for its repairs and maintenance. This acts as a hurdle for implementation of new projects, which also hampers the overall economic development of the economy and the sector. 2. Equipment Rental industry: Equipment rental business is currently pegged at around 78 per cent of the total construction equipment industry is expected to grow appreciably in the coming years.

16. Marketing Strategies Analysis

Market Definition

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The construction and engineering industry is composed of civil engineering companies and largescale contractors, but excludes companies involved in home-building. The market value is calculated as the revenues of those companies whose primary activity is the construction of nonresidential buildings and non-buildings construction (civil engineering).

MARKETING STRATEGIESconstruction image by Sandra Henderson from

Fotolia.com Whether in the remodeling business or new construction, you always run into plenty of competition for construction work. Marketing ensures that you have plenty of work, even when construction jobs are scarce. Use a variety of marketing efforts. This gets your name out much more quickly to a larger audience. Construction Equipment marketing process can be divided into 4 quadrants. They are as follows: 1. Face-to-face marketing or, the people quadrant. 2. Direct Response marketing. 3. Media and traditional advertising. 4. Web based marketing. Prioritize Customers In the construction business, it takes only a few good customers to make up the substantial part of your income. Define who your best customers are and stage your advertising around them. Narrowing your prospects ensures that your marketing dollars do not go to waste. Localize Marketing When you are on-site in a lived-in neighborhood, there are potential customers all around. Place a sign on the corner with your name and tag line. Distribute door hangers that tell a little more about your services. You can even ring doorbells while placing door hangers to present a more personal message. Create a Website You need an online presence. Your website should have contact information and a digital resume. Feature your best work and let your potential customers know what your benefits are. Include customer testimonials and your own credentials. Include pricing and information on the costs of building and remodeling. Become an Expert If you have worked in construction very long, you are sure to have a few tips and tricks in your pocket. Offer a newsletter with advice and information. A weekly or monthly email newsletter doesn't cost much and keeps you on your customers' minds. Write blogs and articles for placement online with your name and website listed in the "About the Author" section. You may need to hire a writer; to keep costs low, hire a local college student at a lower price than a professional. Reward Referrals Referrals are one of the best ways to gain customers. Offer your current customers a gift card or cash when they bring you business. When your business is strong and your customer service is excellent, the referrals will not be hard to come by. Print business cards to make referrals easy for

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your customers. Simply hand out extras and ask customers to give them out when referring your business to others. Sell Your Specialty Your company provides a service in a way that others do not. You may work special hours that accommodate customers better. You may have a large crew and finish jobs in amazingly short periods. Or you may do specialty work that is not offered in your area. However you are unique, advertise that quality by talking about it or creating a tag line that can be placed on marketing materials such as door hangers and business cards.

PRICING POLICY
Production of a product depends on various factors like raw material, manpower, machinery, energy consumption etc. With the combination of all the factors of productions the final products is produced. These factors are to be paid in terms of wages, salaries, interest, dividends, profits etc. So while pricing the product all these factors are taken into consideration. Construction equipments are generally priced depending on its capacity it uses and its working life. They are very expensive and generally its price ranges from thousands to lakhs of rupees per equipments. Generally companies allow payments on installments basis. Some credit period is also given to loyal customers. As there are several major players in this industry, they price their equipment at higher rates than other companies.

PROMOTION SCHEMES
Promotional schemes are always a good tool to attract customers. However the kind of promotional activities that one carries out differs for each industry. The promotional activities carried out for consumer durables are different than those for engineering industry. Promotional activities that can be carried out in this industry are: Price cut due to competition Free services are given for one or two years after the equipment is installed

Transportation charges are beared by the company manufacturing the equipment.

Free spare parts are given along with the equipment for replacement purpose.

DISTRIBUTION CHANNEL
Most producers do not sell their goods directly to their final users; between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel which is also called as trade channel or distribution channel. Formally, distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use. They are the set of pathways a product or service follows after production, culminating in purchase and use by the final end user.

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The producer and the final customer are part of every cannel. For industrial goods and products the customers are also other industries. There are generally four types of Industrial distribution channel which are as follow: a) Zero level b) One level c) Two level d) Three level In India the whole Glasslining industry uses the zero level distribution channels. Here the manufacturer directly sells the equipment to the final industrial customer. Here the customers are various industries like Pharma, Chemical, Beverages, etc. These industries directly approaches the companys manufacturing Glasslined equipments with their specific product requirements. All the three Glasslined equipment manufacturing companies have their branch offices in major metropolitan cities for taking orders and for providing customer services.

16. CSR Activities

Trust / Foundation for CSR CSR Areas No 1. Community Welfare 2. Education 3. Vocational Training 1. Community welfare 2. Education 3. Vocational Training No

Three main CSR activities

Publish Sustainability Report

Corporate Social Responsibility

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Continuously endeavouring to make a positive contribution to society, Greaves has developed Corporate Social Responsibility as an important part of its business. The Company is actively involved in the empowerment of the disadvantaged and weaker sections of the society in Aurangabad and Ranipet. Education, along with intellectual and skill development, is a key thrust area of the Companys CSR profile in these regions, with its initiatives including:

Educational scholarship to students and later engaging them as apprentice/trainees in our plants. On-the-job training to make people job-worthy. Specific skill development programmes for wives of Greaves workmen, such as cookery classes, stitching classes and computer literacy classes.

17. New Marketing Opportunities

Worlds seventh largest country by area and second biggest by population makes India one of the most dynamically growing and still, largely untapped construction equipment industry. The country has witnessed massive investment in the construction industry from both public and private enterprises in recent years. With Prime Minister Manmohan Singh projecting investments of $320 billion in the infrastructure sectors like constructing roads, ports, power plants, telecommunication sector, urban infrastructural developments, etc over the next few years have paved the way for construction equipments demand to grow substantially in recent years. As construction equipments account for 4%-24% of the total construction costs in various sectors, the industry recorded strong revenue grew. According to research report Booming Construction Equipment Market in India, the construction equipment industry in India has witnessed consistent double digit CAGR growth over the past few years. The global economic slowdown had its moderate effects on the industry, but it regained growth momentum in FY 2010 and showed positive year-on-year growth.

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Particularly, the earth moving segment is driving the overall industry with strong demand emanating from government backed infrastructure projects. The segment is poised for an unprecedented CAGR of around 18% during FY 2011 FY 2014. The report has also studied the high growth potential of equipment rental industry. The construction equipment rental market is small, but it has seen impressive growth results over the past few years. Sensing the inorganic demand for rental equipments, OEMs also forayed into renting their equipments to consultants and to independent builders. In coming 3-4 years, the sector is expected to transform in a fully fledged industry providing significant boost to overall industry developments. Over the last 3-4 years, various new entrants made inroad to the Indian construction equipment industry. Some of the biggest names belong to Japan, the US and Korea. Besides, a number of domestic companies are either expanding their domestic capacities or diversifying their product portfolio. With the emergence of new market players and expansion plans underway, the industry is expected to become more competitive and fragmented. However, these new capacities will find their home quite comfortably in the domestic market amid growing mechanization and proposed large infrastructural projects. The industrys expectations of the future evolution in this sector are represented here in graphical form. Most of the current players expect that new players will enter the Indian market.

Industrys Future Evolution

Future market situation and demand Domestic demand was Rs 7000 crores and exports were Rs 330 crores in previous a year which is expected to grow in future. Construction and road making industry would be experiencing comparatively more growth than other units because of some major projects in the pipeline. This would also result in the huge demand of such machinery. The construction equipment industry can contribute a lot by bringing in new technology and modernization of project management.

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Future Prospects Greaves Cotton is focusing on export markets such as Middle East and Africa. It is also focusing on strengthening its dealers /distributors network to tap the potential market for engines, gensets and construction equipment. In its IT front, the company is planning to implement SAP ERP system. Key Factors of Greaves presence expected to sustain growth in the year ahead 1. AUTOMOTIVE SECTOR Continued growth in domestic market, coupled with strong exports, expected to support volume growth in FY12 3-Wheeled and 4-Wheeled SCV segment expected to grow rapidly in FY12 due to additional thrust from rural marketing and further development of hub & spoke transport model However, increasing oil & commodity prices and tight liquidity situation may impact growth 2. INFRASTRUCTURE & CONSTRUCTION SECTOR High growth in infrastructure sector over the medium term expected based on the number of projects in pipeline and underway, however, long running concerns over the level of investment filtering through to projects on the ground need to be addressed Power plants and transmission grids along with Transport sector (rail, road, airport) expected to be the growth drivers in the next few years 3. INDUSTRIAL SECTOR Industrial activity likely to continue during FY12 on account of growth in domestic consumption and global demand for Indian manufactured produccts Shortage of power and the need to maintain back up generation will ensure high rate of growth in the demand for generating sets However, high crude oil prices and rising interest rates coupled with the high base of previous year might limit the pace of industrial growth in FY12. 4. AGRICULTURE A relatively plentiful monsoon in 2010 and forecasts of a normal monsoon in 2011 augurs well for continued growth of the agricultural sector Government thrust on improving efficiencies in the agricultural sector, shortage of farm labour, coupled with increased buying power of farmers with better agri-product prices are will increase mechanization and grow the agri-equipment business