Electronic Manufacturing Services provider PG Electroplast will, through its subsidiary, be making electric vehicle for Africa's largest EV player - Spiro Mobility - in India, the company said November 18.
PG Technoplast, the unit, will be setting up and managing the manufacturing facilities for the upcoming EV, as well as for Lithium-Ion batteries and other components required for the foray. "The Primary responsibility of PG Technoplast will be setting up and managing the manufacturing facilities for Electric vehicle, Lithium-Ion batteries and related components and for procurement of parts and raw materials for the same as specified by Spiro," PG Electroplast said in a statement.
Spiro Mobility is an electric vehicle company focused on the Africa market, where they make and operate electric motorbikes that require battery swapping. Spiro recently opened up a Global Technology Office in Pune, hinting at their plans to develop green mobility solutions in India.
The foray opens up a new opportunity for growth, said Vishal Gupta, Managing Director (Finance), PG Electroplast. "The company’s entry into EV and Lithium-Ion batteries manufacturing opens up a new horizon of growth for the company..." PG Electro said it is confident of becoming a sizeable player in India's EV market.
Spiro's CEO Kaushik Burman said the association of PG and Spiro will bring "mutual success to each other and expand the EV space in emerging markets further".
Shares of PG Electroplast are higher by 162% so far this year, and the company has a market capitalisation of over Rs 16,000 crore.
PG Electro has over 5,000 employees across 10 manufacturing units in Greater Noida (UP), Ahmednagar in Maharashtra, Bhiwadi in Rajasthan and Roorkee in Uttarakhand. Some of the other products manufactured by PG are room air conditioners, washing machines, televisions, PCB assemblies and air coolers, aside of plastic moulding for consumer durables.
During the first half of the fiscal, the product business contributed 68% of the total revenues, and the management believes it is expected to drive growth for the company. PG Electro said it is confident of greater demand for consumer appliances in India, given the rapid rate of urbanisation, government's push for electronic manufacturing and latent demand due to an under-penetrated market.
For FY25, PG Electroplast has given a consolidated revenue guidance of at least Rs 4,250 crore, a growth of 54.7% on year, and a net profit guidance of Rs 250 crore, which is higher by 82.5% on year. The capex for FY25 is projected to be in the range of Rs 350-380 crore.
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