November 29, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Greaves Cotton seeks investors for EV venture; starts 1-mn capacity unit

Greaves Cotton, a 165-year-old manufacturing major and the largest supplier of engines to three-wheelers in India, is in talks with financial investors to fund its electric vehicle plans.

Tamil Nadu chief minister M K Stalin inaugurated Greaves Electric Mobility’s EV production facility at Ranipet in Tamil Nadu, which has a capacity to make one million electric two-wheelers a year. The company, which is the EV arm of Greaves Cotton, is planning to invest Rs 700 crore in the EV sector over 10 years. With e-scooters, e-rickshaws, and e-autos, the company currently operates in 85 percent of the E-mobility sector.

“We are in talks with financial investors including private equity players to fund our EV ambitions. Once on full-swing, we want to utilise our existing penetration through our engines business in EVs too — including 600 outlets in 400 towns, access to over 12,000 mechanics and 7,000 touchpoints,” said Nagesh Basavanhalli, managing director of the company. He added that the new mega-site will help in meeting the rising demand and last-mile mobility needs of the customers.

Greaves Electric Mobility had acquired electric two-wheeler maker Ampere Vehicle in 2019 and electric three-wheeler company Bestway in 2020. Early this year, it bought a considerable stake in electric three-wheeler maker MLR Auto too. “We are also looking at export markets once the units come in full production and are getting demand from SAARC countries and Africa,” he added.

The 35-acre plant in Ranipet will serve as an electric mobility hub for both domestic and export markets. The Ranipet Plant will have the capacity to produce 120,000 units by end of this fiscal year and gradually ramp up to 1 million units. The facility will be operational with 70 per cent of women in the workforce.

State industries minister Thangam Thenarasu said, “Electric Mobility is gaining momentum and we are fully committed to offering every possible support to the automobile industry here. To make India the world’s manufacturing hub, we must prioritise upskilling and creating jobs for our female workforce.”

Pooja Kulkarni, chief executive officer, Guidance Tamil Nadu said, ” Tamil Nadu has now become the destination of choice for EV manufacturers. With a host of across the EV supply chain located here and in the process of setting up their operations, the State has emerged as the EV Capital of India.”

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