Mumbai-based engineering company Greaves Cotton has announced that it has entered a definitive agreement to acquire a majority stake in the Tamil Nadu-based electric vehicle maker, Ampere Vehicles.
Ampere Vehicles was founded in 2008 by Hemalatha Annamalai. The company raised an undisclosed amount from Ratan Tata in 2015. It has so far raised $ 1.2 Mn funding and counts Tata, and Chairman Axilor Ventures Senapathy “Kris” Gopalakrishnan as its key investors.
The company will reportedly acquire 67% stake in Ampere Vehicles for $10.8 Mn (INR 77 Cr) in the first phase of acquisition.
Following the first phase, Greaves Cotton plans to acquire an additional 13% stake in Ampere Vehicles company in the next three years “at its discretion” for $10.6 Mn ( INR 75.5 Cr). This will result in a total deal value of $16.2 Mn (INR 115 Cr).
Post completion of the acquisition, Ampere Vehicles will become an independent subsidiary of Greaves and Hemalatha would continue to remain as the CEO.
An email sent to the company did not elicit any response till the time of publication.
Ampere Vehicles which was established in 2008, aims to be a “trend setter” in the electrical vehicles space
As mentioned on the company website, “ Ampere was incorporated consciously to bring about awareness of high dependency of our country in fossil fuels and propagate alternate transport solutions using disruptive business models. Ampere’s team will innovate in every aspect to be a self-reliant manufacturer to design key components of an electric vehicle.”
In an earlier email interaction with Inc42, an Hemalatha has stated that the [EV] industry needs a separate fund for continuous innovation, research and development in the area of advanced power electronics, which are crucial as “Electric” Vehicle will now transform into “Electronic” vehicle in the next three to five years.
“It will be a paradigm shift of a Multi-folded Disruptions in Business Model, Technology and Application, transforming the entire Mobility spectrum & its constituents,” added Hemalatha.
With the increase in the number of local EV players such as Emflux Motors, Ather Energy and the steps taken by corporates such as Mahindra, etc, the Indian government has also started taking measures to support the sector.
Under the FAME India Scheme [Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India], the authorities have been notified recently for the implementation of the second phase with effect from September 7.
The FAME II Scheme will include an investment of nearly $783.65 Mn over five years. Under this scheme, subsidies will be provided for all two, three and four wheeler electric vehicles in order to promote green vehicles and keep a check on the pollution levels in the country.
Hemalatha further believes that the continuation of FAME India Scheme is vital for sustaining the ecosystem, to convert 30% of automobile fleet into EVs by 2030.
“The EV industry, which is still in the nascent stage, needs support to achieve the targeted number, which should be at least 1% of the gasoline two-wheelers, as a first step to make the EV proposition affordable with volume drivers,” she added.
[This development was reported by ET Tech]