November 19, 2021 / 13:13 IST
Greaves Cotton, manufacturer of electric two- and three-wheelers, is talking to several investors to raise funding to drive its EV ambitions. The Mumbai-based company is leaning towards having a financial investor who shares the company’s vision to push electric mobility, a top official said.
Speaking to Moneycontrol, Nagesh Basvanhalli, Group CEO, Greaves Cotton, said: “So far we have invested Rs 300 crore in the EV business. We have also committed another Rs 700 crore towards manufacturing capacity and expansion. We have invested in talent and products. We are now open to have the right partner come in, preferably a financier.”
Several automotive companies have taken the external funding route to accelerate their electric mobility ambitions. After hiving off its EV division,
Tata Motors has divested a 11-15 percent stake in it to raise $1 billion.
Mahindra & Mahindra,
Bajaj Auto and
TVS Motor Company have said that they are open to taking external funding to the same end.
“We have got a lot of interest from several parties. It is a little premature to talk specifics at this point. I would give it a 6-9-month horizon, but it can be sooner than that depending on the talks. We believe we have set the platform,” Basvanhalli said.
Surging demand
Demand has been robust for electric two-wheelers in light of rising fuel prices, and Greaves Cotton managed to nearly double its volumes during the September quarter to 13,400 units, he added.
“Over the last 3-6 months demand has risen to the next level. It is far outstripping supply and this brings an opportunity for us. In addition to our own funds, with the right vision shared with the right partner, there is a huge opportunity for growth in 2 and 3 wheelers. We believe the external funding will accelerate adoption and accelerate the inflexion point,” Basvanhalli explained.
“Strategic partnerships or opportunities to acquire either new platforms or new technologies or build a stronger brand... the incremental money could be helpful. We are looking at organic and inorganic opportunities to take things to the next level,” Basvanhalli added.
Greaves Cotton has started construction of its mega, Rs 700 crore, 1-million-units-a-year EV plant in Tamil Nadu. The company has advanced the inauguration of the plant to this quarter and hopes to start production in December with an initial capacity of 250,000 units a year.
“Our average selling price has increased from Rs 35,000-40,000 to Rs 70,000. We will launch three products in the next year and a half. We are launching one more product before the end of this financial year. This includes three-wheelers as well,” Basvanhalli added.
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