Greaves Retail’s ambitious push to rival automotive parts giants, become ‘Grainger of India’

Greaves Retail, a modest but highly profitable arm of the 165-year-old Greaves Cotton, is steadily making its mark in India’s organized automotive and industrial spare parts chain market. Amidst limited competition, the company harbors ambitions to rival global distribution giants such as Grainger Inc., a NYSE-listed parts supply business leader in the U.S, Japan and UK.

As a multi-brand, fuel-agnostic distributor, Greaves Retail supplies a broad spectrum of components for commercial vehicles, spanning various sectors. Though it operates alongside Indian competitors such as MyTVS and Bosch’s automotive parts division, Greaves claims to position itself closer to U.S. counterparts such as Grainger in terms of product range and service model—albeit with a firm focus on the Indian market.

“We see ourselves as a multi-brand, fuel-agnostic spare parts distributor, somewhat akin to Grainger in the U.S.,” Narasimha Jayakumar, CEO of Greaves Retail says. However, a critical distinction in Greaves’ model is its exclusive focus on commercial vehicles, both on-road and off-road. Greaves steers clear of personal vehicles, concentrating instead on industrial assets where operational uptime is essential for sustaining livelihoods.

As Jayakumar explains, “We don’t cater to personal vehicles. Our priority is to ensure uptime for commercial vehicles such as trucks and cranes, where downtime directly impacts revenue and livelihoods.”

In recent months, Greaves has expanded its portfolio beyond its traditional market of three-wheeler parts, now offering components for two-wheelers, electric vehicles, and construction equipment. Notably, the company’s electric vehicle offerings have grown to include motors, controllers, and chargers, with new agreements signed with several leading OEMs. The construction parts line has also expanded, bolstered by the acquisition of Excel Control Linkages, which supplies key components to OEMs Tata and Hyundai.

The growth potential in India’s automotive parts market is considerable. By the close of FY24, the sector was valued at approximately $74 billion, with the aftermarket alone accounting for over 20% of sales. Industry forecasts suggest the market will grow at a compound annual growth rate (CAGR) of 25.7%, reaching $115.79 billion by 2028, fueled by rising vehicle demand, particularly in the compact SUV segment, and supportive government policies.

Greaves’ expansion into electric vehicles is particularly notable, given the surge in electric three-wheelers such as e-rickshaws across India. Through an “Intel Inside” strategy, Greaves supplies critical components for these vehicles, without manufacturing the vehicles themselves. The company has developed partnerships with over 40 OEMs and 200 aftermarket distributors, ensuring its products reach a vast network of 20,000 mechanics and 10,000 retailers.

Greaves has also embraced digital innovation. Its loyalty program for mechanics encourages the use of genuine parts by offering rewards through a mobile app. Jayakumar recounts an anecdote illustrating its success: a mechanic was able to pay for his daughter’s wedding using points accumulated through the program. This initiative also forms part of the company’s strategy to combat counterfeit parts, a persistent issue in the market due to the influx of cheaper, lower-quality imports from China.

The construction equipment sector is another area of opportunity for Greaves. India’s ongoing infrastructure boom has spurred demand for spare parts for machinery such as cranes and cement mixers. With the acquisition of Excel Control Linkages, Greaves has made a strong entry into this largely unorganized market, where there is a rising appetite for high-quality, domestically-produced components.

Internationally, Greaves is steadily enhancing its export footprint. The company now exports to over 19 countries, including Bangladesh, Sri Lanka, and regions in East Africa, where Indian-origin commercial vehicles are prevalent. “So that’s something for which we have a separate distribution network overseas and domestic as well,” Jayakumar noted. 

By leveraging its strong brand heritage, extensive distribution network, and digital initiatives, Greaves Retail is looking to not only compete with domestic rivals but also challenge global giants like Grainger Inc. in the years to come.

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