MMF announced the acquisition of 88% stake in the city-based EV power train start-up Abhinava Rizel Pvt. Ltd. for an undisclosed sum
MMF announced the acquisition of 88% stake in the city-based EV power train start-up Abhinava Rizel Pvt. Ltd. for an undisclosed sum
MM Forgings Ltd. (MMF) will invest ₹225 crore over the next few years for foraying into electric vehicles (EVs), said Vidyashankar Krishnan, Vice-Chairman and MD.
“We are making a foray into EVs as part of our transformation strategy to become a leading player in this segment, which offers a huge opportunity,” he said in an interview.
As part of the plan, MMF on Thursday announced the acquisition of 88% stake in the city-based EV power train start-up Abhinava Rizel Pvt. Ltd. for an undisclosed sum and also the setting up of ‘Suvarchas Vidyut Pvt. Ltd.’ a subsidiary with an authorised share capital of ₹5 crore.
Asserting that market size of EV power trains in India would touch ₹1 lakh crore over the medium-term, he said that Abhinava Rizel already had eight patents with 10 more under filing for EV motor and powertrain technologies covering two-three and four wheelers and commercial vehicles.
“We will invest ₹200 crore in the new plant that will come up in Oragadam to make traction motors for EV and auxiliary motors for heavy vehicles,” he said.
According to him, the prototypes were currently being tested. It would take at least 12-18 months for commercialisation.
Regarding Suvarchas Vidyut, he said it entailed an investment of ₹25 crore over the next few years. It would produce conventional alternators and DC motors for non-auto applications in the EV space.
“Last year, we clocked a standalone revenue of ₹1,123 crore. On a conservative note, we hope to do ₹5,000 crore in five years. Most of the funding for the new projects would be met through internal accruals and debt,” he added.
