Ramkrishna Forgings To Acquire 51% Stake In EV Startup TSUYO Manufacturing

The board of Ramkrishna Forgings Ltd, a Kolkata-based supplier of rolled, forged, and machined products, has approved acquisition of up to 51% stake in TSUYO Manufacturing Private  Limited, an Indian startup that manufactures powertrain solutions for electric vehicles (EVs).

Ramkrishna Forgings plans to invest around INR 100 Cr over the next five years, which is expected to generate a turnover of around INR 500 Cr by the end of the fifth year, the company said in a statement.

The proposed investment is expected to help TSUYO Manufacturing use the technological expertise and manufacturing skills of both the organisations to enhance its product portfolio and expand its facilities for manufacturing of motors, controllers, e-axles, and differentials.

“We believe that this strategic investment will enable us to further advance our commitment to supporting the growth of EVs in India and beyond,” said Lalit Khetan, whole-time director and CFO of Ramkrishna Forgings, adding that the acquisition would improve the company’s capabilities and help expand its market share in the evolving EV segment.

Ramkrishna Forgings is a supplier to original equipment manufacturers (OEMs) like Tata Motors, Ashok Leyland, VE Commercial, and Daimler in India. 

On the other hand, TSUYO Manufacturing, registered as an MSME in 2020, is a ‘Make In India’ recognised startup with expertise in developing powertrain products for EVs across application categories including on-road and off-road. As per its website, it manufactures brushless direct current (BLDC) motors under the brand name TSUYO Motor and also makes compatible controllers for three-wheeler EVs like e-autos, e-rickshaws, e-loaders, and others. 

TSUYO Manufacturing claims to supply products to leading OEMs in the three-wheeler EV space across India and some Asian countries. It also does boutique manufacturing and provides custom-built solutions with in-house product development, design, and testing facilities.

Helped by increasing awareness about carbon emissions and push by the states, the number of EVs is on a rise in the country. To incentivise EV adoption, the Centre as well as state governments have introduced various subsidies for different stakeholders in the EV space as well as introduced policies to support the segment. 

Under phase II of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) scheme, the Centre has supported over 7.4 Lakh EVs till December 7 by means of demand incentive amounting to about INR 3,200 Cr.

Union Road Transport and Highways Minister Nitin Gadkari recently said that over 18 Lakh EVs are currently registered in the country. While electric three-wheelers are increasingly gaining pace in terms of EV adoption, particularly for commercial use, two-wheelers are currently ruling the EV segment.