Chennai, June 2 (TIWN) Diversified engineering company Greaves Cotton Ltd plans a capital expenditure of about Rs 110 crore this year of which majority will be on its electric two wheeler plant at Ranipet in Tamil Nadu, said a top official.

The company, serving 22 OEMs, including Peugeot and Mahindra, produces from the smallest HP petrol engine to 1,000 HP diesel engine. Four of its eight facilities produce diesel engines, while three of them manufacture construction equipment, to cater to the construction sector. One of the facilities produces petrol engines.

Greaves Cotton, aiming at self-sufficiency in proprietary design and technology, would utilise the money for expanding capacities and in-house R&D. This year, the company has earmarked an R&D spend upwards of Rs 30 crore, managing director and CEO P Sachdev told ET here.

The company also proposes to launch new engine products by mid-July next year. "The products are in various stages of development. Some of the new models would be available in the market place by mid-July 2008," he added.