Engine manufacturer Greaves Cotton said it will acquire a 67 percent stake in Ratan Tata-backed Ampere Vehicles for Rs 77 crore valuing the Singapore-based, 10-year old electric vehicle maker at Rs 115 crore.
With this proposed acquisition Greaves Cotton hopes to accelerate product and technology development process especially for last mile mobility in the electric vehicle space.
Greaves Cotton will gradually increase its stake further in the privately-held company by 13 percent over the next three years for which it has agreed to shell out another Rs 75.5 crore.
Founded by Hemalatha Annamalai in 2008, Ampere is into design, development, manufacturing and marketing battery-operated electric vehicles which include electric cycles, electric two-wheelers, electric three-wheelers and custom-built electric vehicles.
Ratan Tata and former Infosys executive Kris Gopalakrishnan are investors in Ampere Vehicles.
The electric vehicles are available for personal mobility, industrial applications and materials movement. The company has operates through its plants located in Coimbatore and has an employee strength of 107. Production capacity of the two plants is 60,000 units per annum and over the last three years Ampere has sold more than 20,000 electric vehicles.
Nagesh Basavanhalli, MD & CEO, Greaves Cotton, said, “With this strategic acquisition we will be able to address a wider range of customer segments with clean energy mobility solutions.”
Greaves Cotton has been experimenting with electric vehicle technology since the last few years. The company even showcased two electric powertrain solutions at the Auto Expo this year that are ready for use in three-wheelers.
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