Engineering firm Greaves Cotton today said it has entered into a long term agreement with Mahindra & Mahindra (M&M) to supply single cylinder engines for three-wheelers.
"The agreement comes into force with immediate effect and is for period of five years," Greaves Cotton said in a filing to Bombay Stock Exchange (BSE).
The company will be the single source supplier for 100% needs of M&M for their three-wheeled vehicles, it added.
M&M's three-wheeler is mainly in the commercial vehicles segment. The company sold 50,648 units in the April-January period this fiscal, up 39% from the year-ago period.
Earlier this month, Greaves Cotton had also bagged a 10- year contract from Tata Motors to supply small diesel engines for half-tonne truck, Ace Zip that is expected to be launched in the first quarter of next fiscal.
Greaves Cotton also supplies engines to Piaggio for mini truck Ape as part of an eight-year contract. The company also meets the diesel engine needs of other three-wheeler makers, including Piaggio, Atul Auto and Scooters India.
Greaves Cotton plans to build a new engine manufacturing plant at Aurangabad in Maharashtra with an investment of Rs 100 crore to meet the growing demand for engines.
This will take the company's total automotive engine manufacturing capacity to 4 lakh units per annum.
Greaves Cotton scrip ended the day at Rs 91.85 per share at the BSE, down 2.18 from the previous close.
