GREAVES COTTON LIMITED

INVESTORS MEET

2011

CONTENTS

2

GREAVES SNAPSHOT

HIGHLIGHTS OF 2010-11

THE ROAD AHEAD…

GREAVES HAS A PIONEERING HISTORY IN INDIAN

INDUSTRY SPANNING OVER 150 YEARS

3

1859 1947 1994 2001 20091939

James GREAVES forms the company, joined later by George COTTON

1859India attains independence.

Lala KaramchandThapar buys Greaves - becomes an Indian Company

1947

Technical collaboration with BOMAG, Germany, to manufacture Vibratory Compactors

1986

Acquires Bukh Farymann Diesel GmbH , Germany

2007

Crosses two million in light diesel engines, launches 19 ton Compactor -heaviest in India

2009

Enters into Joint Venture with Ruston & Hornsby Ltd., U.K. for diesel enginemanufacturing in India

1939

Starts manufacturing high power MWM diesel engines for Gensets

1980

Acquires two Plants from Enfield India Ltd., to manufacture Petrol / Kerosene engines

1994

Technology Centre and manufacturing facility for the new G Series engines opens in Pune.

2008

2008

Millionth Light Diesel Engine rolls out

2004

Introduces new concreting equipment in technical collaboration with CIFA of Italy

2001

Introduces Transit Mixer and Batching Plants

1996

1980 1986 1996 20072004 2010

Acquires Ascot International FZC, UAE

2010

Greaves has continuously evolved in the past 150 years transforming itself into an

Engineering Major

GREAVES TODAY IS ONE OF THE LEADING SINGLE

CYLINDER ENGINE MANUFACTURERS IN THE WORLD

4

GREAVES TODAY

Consolidated Net Sales of INR 1,725 Cr (9M

FY11 - INR 1,279 Cr )

Manufactures over 5 Lac IC engines in 1.4 to

1000 HP range p.a. for various applications

Produces modern construction machinery for

road building and concreting applications

Extensive marketing and service network

thro’4 Regional and 12 Sales offices and over

1200 dealers in India. Overseas

representative offices in China and UK

Competent workforce of ~ 4,000

CORE COMPETENCE

Engine Technology Development

State of Art R&D centers with over a

100 technical personnel

Cost efficient Engine

Manufacture

Leveraging 9 Manufacturing Units in

India and 1 in Germany

1

2

Greaves is proud recipient of Frost & Sullivan India Manufacturing Excellence Award

(GOLD)

Contemporary Technology

Construction Machinery

Cost efficient manufacture of globally

contemporary heavy machinery

3

THE COMPANY OPERATES THROUGH FIVE BUSINESS

DIVISIONS WITH AUTOMOTIVE BEING THE LARGEST

5

Fuel efficient, rugged

and reliable Gensets

conforming to latest

emission norms

Range: 500 VA to

550 kVA

Manufacturing &

Product Development

Facilities at Pune

In-house foundry for

custom built castings

Wide range of agro-

equipment to

enhance farm

productivity

Market leader in

Petrol / Kerosene

Engines

Product Range:

o Petrol / Kerosene

engines & Pumps

o Portable /

Conventional

Diesel Pump-sets

o Power Tillers,

Reapers & Mini

agro equipment

Manufacturing &

Product Development

Facility at

Gummidipoondi (TN)

I

Diesel Engines from

1.4 to 750 HP range

with option for CNG /

LPG fuel

Leverages

manufacturing

platform of other

business divisions

Provide engines for

different industrial

applications

Construction

machinery for

infrastructure sector

Compaction Products

- Vibratory, Tandem

& Pneumatic Tyre

Rollers

Concreting Products

-Concrete pumps,

Transit Mixers,

Batching Plants

Earthmoving - Wheel

Loader & Motor

Grader

Manufacturing &

Product Development

Facilities at

Gummidipoondi (TN)

Light Diesel Engines

for automotive

application - Range :

4.4 to 25 HP

Market leader in

single cylinder diesel

engine

Product conformance

to emission norms

Manufacturing &

Product Development

Facilities at

Aurangabad (MH)

and Ranipet (TN)

GCL - Business Divisions

AUXILIARY

POWER

AGRO

EQUIPMENTAUTOMOTIVE

INDUSTRIAL

ENGINECONSTRUCTION

EQUIPMENT

ENGINE SEGMENT INFRA SEGMENT

GREAVES OFFERS A DIVERSIFIED PRODUCT PROFILE TO

ITS VALUED CUSTOMERS…

GCL - Major Products

AUXILIARY POWER AGRO EQUIPMENT AUTOMOTIVE INDUSTRIAL ENGINE CONSTRUCTION EQP

Power Tiller

Reaper

Petrol EngineTwin Cylinder Engine

with Power-pack

Twin Cylinder

Engine

Single Cylinder

EnginePortable Genset

Canopised Genset

Non-canopised

Genset

Marine Engine

8 Cylinder Engine

G-Series Engine

Road Compactor

Paver

Transit Mixer

… AND SERVES MULTIPLE SECTORS OF INDUSTRY

GCL – End Use Sectors

AUXILIARY POWER AGRO EQUIPMENT AUTOMOTIVE INDUSTRIAL ENGINE CONSTRUCTION EQP

• Medium &

Small Farms

• Gardens &

Landscaping

• Manufacturing

Enterprises

• Commercial &

Residential

Complexes

• Hotels

• Hospitals

• Defence

• Retail Outlets

• Marine

Applications

• 3 Wheeled

Commercial

Vehicle

manufacturers

• 4 Wheeled

Small

Commercial

Vehicle

manufacturers

• Agriculture

• Fire Fighting

• Mining &

Construction

• Material

Handling

• Rail Cars

• Road Sweepers

• Marine

Propulsion

• Concreting

Industry

• Construction

Industry

• Roads Building;

Asphalt Paving

THE COMPANY SERVES ITS CUSTOMERS THROUGH A

STRONG SALES & SERVICE NETWORK

8

INSTITUTIONAL SHAREHOLDING HAS GONE-UP BY 5%

DURING 2010-11

9

SHAREHOLDING PATTERN (as on 31.03.11)

GREAVES COTTON LIMITED – Subsidiary Companies

International Subsidiaries

• Greaves Cotton Netherlands B.V., Netherland

• Greaves Farymann Diesel GmBH, Germany

• Ascot International FZC, UAE

Indian Subsidiaries

• Greaves Leasing Finance Ltd

• Dee Greaves Ltd

• Greaves Auto Ltd

52%39%

9%

Promoters

Institutional Investors

Indian Public

• Share Capital : INR 48.84 Cr

• Listing :

• Bombay Stock Exchange (BSE)

• National Stock Exchange (NSE)

• Market Capitalization : INR 2,327 Cr (as on

31.03.11)

10

GREAVES SNAPSHOT

HIGHLIGHTS OF 2010-11

THE ROAD AHEAD…

CONTENTS

GREAVES CONTINUED ITS IMPROVED PERFORMANCE

IN 2010-11 AS WELL

11

Accounting Year Changed from July – June cycle to April – March Cycle to align with the

Indian Financial Calendar. 2010-11 performance consequently is for 9 Months

Sound operating performance in FY11

Produced ~390,000 engines in 9M FY11, corresponding to over 500,000 units on

annualized basis

Consolidated EBITDA improved to INR 199 Cr in 9M FY11 (up 22%), corresponding

to INR 256 Cr on annualized basis

Consolidated Cash Profit improved to INR 150 Cr in 9M FY11 (up 34%),

corresponding to INR 198 Cr on annualized basis

9 MONTHS PERFORMANCE WAS CLOSE TO 12 MONTHS

PERFORMANCE OF LAST YEAR

10001250

358 453

347

434

FY10 FY11* Q3FY10 Q3FY11

REVENUE (INR Cr)

161198

58 67

45

55

FY10 FY11* Q3FY10 Q3FY11

EBITDA (INR Cr)

9M Revenue grew by 25% on

account of strong performance by

all business units

9M EBITDA continued to grow

strongly and reached INR 198 Cr in

2010-11 up by 23%

1347

1684

* FY 11 is annualized figure

206

253

13

134184

50 67

39

54

FY10 FY11* Q3FY10 Q3FY11

PROFIT BEFORE TAX (INR Cr)

90127

34 47

28

40

FY10 FY11* Q3FY10 Q3FY11

PROFIT AFTER TAX (INR Cr)

9M PBT grew by 37%

9M PAT continued to grow strongly

and reached INR 127 Cr in 2010-11

up by 41%; an all time high

* FY 11 is annualized figure

173

238

118

167

9 MONTHS PROFITABILITY PERFORMANCE EXCEEDED 12

MONTHS PERFORMANCE OF LAST YEAR

RETURN ON CAPITAL EMPLOYED IMPROVED TO 49% AND ROE

IMPROVED TO 35% IN FY11

14

52%

38%

22%

39%

49%

FY07 FY08 FY09 FY10 FY11*

RETURN ON CAPITAL EMPLOYED (%)

48%

33%

14%

28%35%

FY07 FY08 FY09 FY10 FY11*

RETURN ON EQUITY (%)

ROCE improved to 49% in FY11

(annualized) from 39% in FY10

ROE improved to 35% in FY11

(annualized) from 28% in FY10

* FY 11 is annualized figure

WHILE ENGINES SEGMENT CONTINUES TO DOMINATE,

INFRA EQUIPMENT SEGMENT’S SHARE HAS INCHED-UP

15

Engine segment continues to

dominate the company with 84%

(last year 85%) share of revenue

and 93% share of profits (last year

96%)

84%

12%4%

Engine Infrastructure Equipment Trading

SEGMENT REVENUE SPLIT

93%

0.4%6%

Engine Infrastructure Equipment Trading

SEGMENT PROFIT SPLIT

THE COMPANY PROVIDED BETTER SHAREHOLDER

RETURNS IN FY11

16

EPS expanded to 5.2 in 9M FY11 which corresponds to 6.9 in FY11 on annualized basis

SHARE HOLDER RETURNS

5.04.5

2.3

4.8

6.9

1.4 1.20.8

3

1.5

66

42

22

50

87

0

10

20

30

40

50

60

70

80

90

100

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

FY07 FY08 FY09 FY10 FY11

INR

INR

/ S

hare

EPS Dividend Avg. Market Price

Figures restated to reflect the stock-split in FY11

SNAPSHOT - INCOME STATEMENT

17

Rs Cr

FY10 FY11

Q3 9M Q3 9M

Revenue 358.0 999.5 452.7 1250.4

EBITDA 58.4 161.0 66.7 197.8

Depreciation 6.6 20.2 7.2 21.0

Operating Profit 51.8 140.8 59.5 176.8

Interest 3.0 10.2 2.4 7.2

Other Income 1.5 3.1 9.8 14.1

PBT 50.3 133.7 66.9 183.7

PAT 33.6 90.2 46.7 127.3

SNAPSHOT - BALANCE SHEET

18

Rs Cr Mar’10 Jun’10 Mar’11

Sources

Shareholders Fund 484 441 526

Loan Fund 6 5 6

Deferred Tax Liability (Net) 26 25 26

Total 516 471 558

Applications

Fixed Assets (Net) 259 266 287

Investment 95 130 84

Net Current Assets 162 75 187

Total 516 471 558

SNAPSHOT - KEY FINANCIAL & OPERATIONAL RATIOS

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Category Unit FY 10 9MFY10 9MFY11

Profitability

EBITDA Margin % 15.3 16.1 15.8

Net Profit Margin % 8.8 9.0 10.2

Activity

Fixed Asset Turnover Times 5.1 5.0 6.0

Average Debtor Days Days 49 51 54

Average Inventory Days Days 58 54 53

Average Trade Creditors

DaysDays 59 58 62

SNAPSHOT - KEY INITIATIVES 2010-11

20

BS III emission norms achieved for automotive engines using cost competitive technology

developed by in-house R&D

Construction of new plant at Shendra (Aurangabad) initiated to augment capacity for Automotive

engines

Construction equipment division entered the earth moving segment with Motor Grader and

Wheel Loaders

Acquired Ascot International FZC, UAE, to strengthen presence in Middle East and North Africa

Investments in R&D to develop new products & enlarge current range

Shop-floor productivity improvement through re-layout , modernization and workforce skill

development

Sales & Service network strengthened with opening of new branches and appointment of new

dealers across the country

KEY INITIATIVES UNDERTAKEN IN 2010-11

GREAVES SNAPSHOT

HIGHLIGHTS OF 2010-11

THE ROAD AHEAD…

CONTENTS

GLOBAL ECONOMIC GROWTH EXPECTED TO MODERATE

IN 2011; INDIA EXPECTED TO GROW AT 8.3%

• Global GDP growth expected to

moderate to 3.2% in 2011 from 3.4%

in 2010 on account of increase in

oil prices due to geopolitical

tensions in the Middle East and

impact on economic activity due to

Japan’s earthquake and tsunami

• Growth in BRIC nations also

expected to moderate on account

of policy tightening to control

inflation

• India’s economic growth expected

to slow marginally from 8.7% in

FY11 to 8.3% in FY12 on account of

expected policy tightening to reign-

in inflation

• While growth in industrial

production is expected to

slowdown marginally, exports are

expected to pick-up

22

2.9

1.7

3.9

1.3

7.5

4

8.7

10.3

2.4

6.8

8.4

3.4

3

1.2

1

1.6

4

4.5

8.3

8.9

1.9

5.5

7.1

3.2

USA

Euro Area

Japan

UK

Brazil

Russia

India

China

Advanced Economies

Emerging Markets

BRICS

World

2011 2010

GLOBAL GDP GROWTH RATE (%)

Fitch Ratings

KEY SECTORS OF GREAVES’ PRESENCE EXPECTED TO

SUSTAIN GROWTH IN THE YEAR AHEAD

23

• 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

AUTOMOTIVE

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

INFRASTRUCTURE

& CONSTRUCTION

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.

INDUSTRIAL

SECTOR

• 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

AGRICULTURE

SECTOR

All businesses of Greaves Cotton are expected to be beneficiary of this enabling growth environment.

THE COMPANY HAS ALSO PLANNED SEVERAL STRATEGIC

INITIATIVES FOR FY12 TO STRENGTHEN ITS POSITIONING

24

Increased R&D investments to:

- evolve products for new regulations on Emission and Noise while maintaining optimum

product cost

- add new products categories (multi fuel engines, Indigenous power tillers and reapers,

Larger capacity Gensets, Bigger Batching Plants and Concrete Pumps)

Increase contribution from spare and service business through renewed focus on after market

support

Increase focus on International Business especially from SAARC countries, Middle East, SE Asia

and Africa

Establish production of Automotive engines at the new plant at Shendra; expand capacity of the

Ranipet plant

Strengthen HR processes to enhance organizational capability

KEY INITIATIVES PLANNED IN 2011-12

25

THANK YOU

GREAVES COTTON LIMITEDwww.greavescotton.com