He left India at the age of 17 to study in the US. After getting a Bachelors’ degree at Rose-Hulman Institute of Technology and a Masters from Yale University, he worked at some of the iconic companies in the world, such as Airbus, Philips, McKinsey & Co and the like.
During his annual trips to Bengaluru, a city he grew up in and loved, its poor air-quality bothered him. The dismay, building over time, reached a tipping point and pushed the man into action. The prodigal son returned and embarked on a `clean initiative’. Meet Anirudh Ravi Narayanan, the CEO and co-founder of Boom Motors, an EV (electric vehicle) company based out of Coimbatore.
“Our goal is to reduce vehicular pollution by helping the world transition to sustainable-energy vehicles,” he said during an interview with Moneycontrol. Boom’s goal is easier said than done.Can EVs see mass-scale adoption? They can. But there are several imponderables. The vehicles have to be better not just for the environment but also for one’s wallet. Can EVs retain or exceed the convenience, performance and peace-of-mind offered by petrol vehicles? EVs are still new in the Indian automobile field. Ipso facto, the associated risks are higher. But that has not discouraged the passionate Narayanan from forging ahead.
He appreciates the price consciousness of the Indian market, and has tailored his product to suit the sentiment. “Boom Motors will lead the way for a change in the electric vehicle industry by delivering quality vehicles at economical prices, removing barriers of adoption… All parts of the vehicles are designed, developed and manufactured in India out of its factory in Coimbatore,” he said.
His venture borders on the daring, and it is rightly placed to ride the zeitgeist of today, when the industry and the government are realising the imperative of transitioning to cleaner transport. But, good intentions alone won’t carry a business, especially a nascent one, far. What it needs is a benign policy environment and a big-push to change the mind-set of clients to move towards cleaner vehicles.
The government’s extension of the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), an ambitious scheme to promote electric mobility, by two years till March 31, 2024, was welcome. Anirudh is happy with this, but the Budget will have to do something to step up the utilisation of FAME II funds.
The FAME scheme’s first phase began on 1 April 2015, and was extended till March 31, 2019, and the second phase (Fame-2) that began on April 1, 2019, was to have ended on March 31, 2022. However, the scheme failed to take off with only 5 percent, or Rs 492 crore, of the Rs 10,000 crore allocated under its second phase spent till March. Perhaps, the Budget could propose some revisions to increase the incentive uptake, he said.Going beyond PLIS
A few months ago, the government announced a production-linked incentive (PLI) scheme for the auto sector. It was ostensibly to overcome the cost-disadvantages of the industry for manufacture of advanced automotive-technology products in India. The incentive structure, it is claimed, will encourage the industry to make fresh investments for indigenous global-supply chains of advanced automotive technology products.
It is estimated that over a period of five years, the PLI Scheme for automobile and auto components industry will lead to fresh investments of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore and create additional employment opportunities of over 7.5 lakh jobs.
Anirudh is a new entrant to the field of business, and is obviously quite enthusiastic about his venture. For senior industrialist Venu Srinivasan, chairman of TVS Motors which has also made a considerable foray into EV space, a robust business environment is a sine qua non for a competitive existence in the field. Perhaps, the Finance Minister Nirmala Sitharaman will keep this in mind while presenting her Budget.
“We need to look at higher economic growth, ease of doing business and making our manufacturing more competitive. In the globalised business environment, competitiveness is the single most important agenda,” Venu Srinivasan told Moneycontrol. “To support that we need ease of doing business, polytechnics, skill building, and better power and logistics infrastructure,” he added. He is hopeful that the Budget will address these larger issues.Narayanan’s reason for choosing Coimbatore illustrates Srinivasan’s point. He said, “I first visited Coimbatore in 2015 on a small business trip and I immediately loved the place. It’s a very entrepreneurial and innovative city – the amount of jugaad / creative engineering happening here is just incredible. It has a highly educated population – some great educational institutions and top-class mechanical, electrical and electronics engineering talent. It has incredible strength in manufacturing, and a strong automotive supply-base. Also, the culture is distinctive – people here are humble and have a particular genius – taking a lot of passion and interest in what they do. Finally, the quality of life is great.”
Boom is looking to invest Rs. 1,000 crore over the next five years, maybe through a combination of internal accruals, debt and equity, to create one million-vehicle capacity. The company’s initial investment came from like-minded friends and family. With its growing ambition, the young company needs more than its immediate circle and needs a well-implemented national policy.
The Booms of modern India are hoping for a friendly playfield where they are encouraged to eke out a living and also satiate their passion. Nirmala Sitharaman has her task cut out, indeed.
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