Ref: GR/AMB/AUTOPARTS/TOD/FY24-25/01 Date: 01-04-2024

To, All Channel Partners,

Greaves Spares: AEB & 3W MB Parts & Oil Incentive (TOD) Policy for Financial Year 2024-25

Dear Sirs,
First, we thank you and express appreciation for your committed efforts towards promoting the Greaves Spares business
and look forward to the same support in the years to come.

We are pleased to share this year’s AEB & 3WMB Parts & Oil TOD Policy

We would like to inform you that this year’s policy has been framed keeping in view all the input we have received from
you over various interactions we had from time to time.

AEB Parts TOD Policy – FY 24-25

• 1.50 % Incentive on achievement of 100% Monthly targets.
• 2.00 % Incentive on achievement of 100% Quarterly targets.
• 1.00 % Incentive on achievement of 100% Annual targets.
• Distributors would be eligible for a maximum TOD of 4.5% on 100% achievement of all the above slabs.
❖ Distributors would be able to avail full monthly TOD (on actual monthly billing value) for any one month in a
quarter even if they do not achieve the full 100% target in that particular month, subject to the following
conditions:
▪ In the remaining two months, the distributor must ensure minimum 100% achievement of each month target
and also to recover the shortfall if any to qualify for quarterly TOD.
▪ Distributors need to achieve a minimum of 80 % of the target for that particular month in which the
performance is less than the target. This shortfall to the target will be permitted to be covered in the
remaining month/s of the same quarter in which the option to perform not less than 80% of the target is
exercised by the distributor.
▪ The Illustration for the same shown as below:

Criteria Target Case 1 Case 2 Case 3

Month 1 100 100 130 100
Month 2 100 80 90 120
Month 3 100 120 90 80
Quarterly Total 300 300 310 300
Eligibility YES NO YES

3WMB Parts TOD Policy – FY 24-25

• 2.00 % Incentive on achievement of 100% Monthly targets.
• 3.00 % Incentive on achievement of 100% Trimester targets.
• 2.00 % Incentive on achievement of 100% Annual targets
• Distributors would be eligible for a maximum TOD of 7 % on 100% achievement of all the above slabs.
 ❖ Distributors would be able to avail full monthly TOD (on actual monthly billing value) for any one month in a
trimester even if they do not achieve the full 100% target in that particular month, subject to the following
conditions:
▪ In the remaining three months, the distributor must ensure minimum 100% achievement of each month
target and also to recover the shortfall if any to qualify for trimester TOD.
▪ Distributors need to achieve a minimum of 80 % of the target for that particular month in which the
performance is less than the target. This shortfall to the target will be permitted to be covered in the
remaining month/s of the same trimester in which the option to perform not less than 80% of the target is
exercised by the distributor.
▪ The Illustration for the same shown as below:

Criteria Target Case 1 Case 2 Case 3

Month 1 100 100 100 120
Month 2 100 80 125 100
Month 3 100 120 90 100
Month 4 100 100 90 80
Trimester Total 400 400 405 400
Eligibility YES NO YES

Three Trimesters periods will be as follows:

o T1 – 1st April to 31st July
o T2 – 1st August to 30th November
o T3 – 1st December to 31st March

GMO TOD Policy:

• It would be intimated separately as per regular practice.

TOD Incentive Notes:

• TOD incentive would be calculated on gross billing value excl. GST & net of credit notes.
• TOD would be disbursed at the end of the respective target period/s and paid once all overdue outstanding for
the respective period/s has been cleared.

Sales support product schemes:

• Apart from the above TOD Incentives, special product schemes are planned. These schemes are planned for AEB,
3W MB Parts & GMO. The same would be declared separately from time to time.
• The MLP scheme has gained traction and widespread acceptance with easy use and attractive redemption
options. The Scheme needs to be utilized to build the secondary sales through increased mechanic connect and
loyalty.
Cash Discount Terms:
• A cash discount of 2 % will apply to all parties with Cash and Carry terms against advance payment.
• Distributors who avail pull model funding facilities through Channel Finance are also eligible for 2.00% cash
discount – if the payment is received in advance i.e. before dispatch of the goods
• The CD applicable for 100% secured credit with Bank Guarantee / Security Deposit (amount shall be specified by
Greaves Retail on case-to-case basis) is not applicable in Greaves Spares business.
• A 2.00% Cash discount is applicable if Greaves Retail receives a payment within 3 working days from the invoice
date.
• A 1.5% Cash discount is applicable if the payment is realized by Greaves from 4 - 7 working days from the date of
the Invoice.
• Cash discount terms will be applicable with the above terms for channel partners with special terms and proper
securitization as per agreed company norms.
• The decision of Greaves will be final on this matter.

Payment Terms:
• Greaves should realize payment as per agreed terms through online payment transfers, i.e. RTGS or Channel
Finance mode of payment

Greaves’ expectations from Channel Partners:

• Greaves is planning introducing digital initiatives to bring in more transparency in the distribution chain and
improve customer experience / response. Channel Partners are requested to cooperate by implementing the
same on time & as required by Greaves.
• Enroll max mechanics to drive the MLP program and see that the benefits reach the max no of mechanics.
• To carry out regular field activities per the plan, which our team would share.
• To provide the required sales staff to drive the above activities and to carry out regular sales activities.
• To increase the Dealer network by reaching out to more talukas for in-depth distribution of goods and reduce the
dependence on wholesalers.
• To execute the orders within 24 hrs. of receiving the demand and supply the goods through the fastest mode of
transport.

Distribution Terms & Conditions:

• The sales operational area will be as per territory specified in the respective business target letters shared
• All Parts order should be placed on Greaves Portal; Greaves Retail India online Parts ordering system.
• Channel Partners must maintain minimum stock of 45 days for Fast Moving and consumables spare parts to
maintain high First Fill above 90%.
• The supply of material will be on “Ex-works” basis. However, the freight shall be borne by Greaves.
• Short supplies & transit damages should be mentioned on the POD or else claims will not be entertained.
• Distributor will be required to declare their Secondary Sale-dealer wise and Inventory data as on 1st day of month
as & when requested by the Greaves Retail team.
• Greaves Retail distributors are requested to read carefully all the points of the policies and strictly adhere to the
policies for all Parts Operation to avoid any discrepancies and disputes.
 • The Channel Partners should ensure usage of Greaves Logo only upon authorization from Greaves Retail.
• The Channel Partners are expected to ensure customer satisfaction for Greaves Customers.

Greaves Retail reserves the right to modify the Parts Policy without prior notification.

Yours sincerely,
For Greaves Retail

(MANISH SINHA)
Head – Sales & Marketing
Domestic Auto Aftermarket Business