Greaves Cotton, primarily known for its gensets, is set to acquire a majority stake in Ampere Vehicles, an Indian electric two-wheeler startup. Ampere started operations in 2008 in Coimbatore. Currently, its portfolio includes the Ampere V48 and Reo electric scooter, Angel electric cycle, along with three-wheelers, go-karts and mobility and material moving solutions. They also sell automotive batteries.
With funding from Greaves, Ampere will now have the financial backing to further innovate new battery technology and improve quality, performance and range of its bike. Greaves’ extensive dealer network should also help the company to increase its distribution footprint.
Ampere Vehicles currently has two manufacturing facilities in Coimbatore that together have a production capacity of 60,000 vehicles. The company is present in seven states including Maharashtra, Gujarat, Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana.
A manufacturing giant showing interest in relatively small electric technology companies and startups is not new in the Indian two-wheeled autoverse. Hero MotoCorp has already invested around Rs 205 crore in electric two-wheeler startup Ather Energy. In fact, TVS too has a 15 per cent stake in electric two-wheelers startup Ultraviolette. The buck doesn't stop there. TVS is also working on a Jupiter-sized electric scooter and also had the Creon electric scooter concept at this year's Auto Expo, while Bajaj too is set to launch electric two-wheelers by 2020. And more recently, a Mahindra Mojo electric bike was spied testing. The Indian electric two-wheeler space is set to grow substantially in the coming years with the government also urging Indian automakers to get into the electric segment.
Greaves Cotton to acquire majority stake in electric vehicle company Ampere
Strengthens its strategic commitment to the last mile mobility segment with innovative, state-of-the-art solutions
29th Aug, 2018: Greaves Cotton, one of India’s leading diversified engineering companies, today announced that they have entered into definitive agreements pursuant to which Greaves Cotton will acquire a majority stake in EV company Ampere Vehicles Pvt. Ltd, subject to customary closing conditions. This acquisition will accelerate the development of clean energy technology solutions for mobility needs of passengers and small businesses.
Ampere is one of the leading brands in the last mile mobility electric vehicles segment. It has strong in-house capabilities in designing, developing, manufacturing & marketing electric vehicles with a wide range of applications. Greaves currently provides transportation to almost 10 million people daily through its powertrain solutions. In addition, Greaves reaches 5 million customers (of aftermarket spare parts) per month through its network of 5000+ retail outlets. The newly launched Greaves Care network services nearly 7000+ vehicles per month, with plans to substantially ramp-up in the coming years. Greaves will be able to leverage its distribution, aftermarket and service strengths to help Ampere grow more rapidly.
Greaves aims to create enhanced value for its shareholders by investing in advanced clean energy technologies through partnerships in India and worldwide. This acquisition in the electric mobility segment underscores the strategic intent of Greaves.
Mr. Nagesh Basavanhalli, MD & CEO, Greaves Cotton Limited, said, “Greaves has been a trusted brand since 1859, and is well known for the reliability of its products, a strong value proposition based on low total cost of ownership and widespread pan India reach. With this strategic acquisition, we will be able to address a wider range of customer segments with clean energy mobility solutions. Greaves and Ampere will be a synergistic combination of our excellence in frugal engineering & manufacturing with a new age electric mobility solutions company.”
About Greaves Cotton Ltd:
Greaves Cotton Limited, a Rs.1800 crore, multi-product, multi-locational company is one of the leading engineering companies in India with core competencies in fuel agnostic powertrain solutions and services, farm equipment and Gensets. The Company sustains its leadership through six manufacturing units which produce world class products backed by comprehensive aftermarket support through its 5000+ retail outlets across India. Greaves also manufactures approximately 400,000 engines annually at its plants in Pune, Aurangabad and Ranipet. Greaves provides the most affordable mobility solutions to the majority of population in India, moving more than 1 crore passengers and 5 lakh tonnes of cargo every day.