Greaves Cotton Ltd has entered into a long-term supply agreement with Mahindra & Mahindra Limited (M&M) for supply of single cylinder engines for their three-wheeled vehicles. The agreement, valid for a 5-year period, comes into force with immediate effect.
Pursuant to the agreement, Greaves Cotton will be the single source supplier for 100 per cent needs of M&M for their three-wheeled vehicles.
Greaves Cotton also won a 10-year contract from Tata Motors to supply small diesel engines for its new half-tonne truck, Ace Zip, which is expected to be launched in the first quarter of the coming fiscal (2011-12).
"Greaves has developed a 600cc engine for Tata Motors' new truck. It will also supply CNG engines for the truck," Prabhakar Dev, managing director and CEO of Greaves Cotton, said in a statement.
Greaves Cotton has an eight-year contract with Piaggio for supplying engines to its four-wheeler truck Ape. The company also supplies diesel engines to Atul Auto and Scooters India.
The company is planning to build a new engine manufacturing plant at Aurangabad in Maharashtra, at an investment of Rs100 crore, to meet the growing demand for engines.