Salzer Electronics Limited announce its joint venture with EMarch LLP to manufacture electric conversion kits for vehicles. Salzer, through its wholly-owned subsidiary, would hold 26% equity in this JV, while EMarch LLP would hold 22.5%; the rest would be held by other private investors. The total investment in this venture would be Rs6cr.
Salzer would form a wholly-owned subsidiary, Salzer EV Infra Pvt. Ltd., which in turn would form a JV named Salzer EMarch E Mobility Pvt. Ltd., in association with EMarch LLP (IndoAustrian technology firm with abundant resource and knowledge in Electric Conversion Kits & power electronics). This JV would be engaged in manufacturing electric conversion kits for auto-rickshaws, cars and buses and also manufacture novel electric driven utility vehicles.
The global industry for EVs has been on the rise in the recent past. Stringent emission norms and environmental concerns are expediting the adoption of EVs in various nations. The Government of India is also propagating the awareness and adoption of EVs, and this is likely to open up huge opportunities for the Company.
Commenting on this development, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said: “I am very pleased to share the news that we are forming another joint venture company with a technology firm, E-March LLP. Through this JV, Salzer EMarch E Mobility Pvt. Ltd., we would bring affordable electric conversion kits for Auto Rickshaws to the market in the first phase. Going forward, eConversion kits will also be produced for Cars & Buses. Our manufacturing capabilities would be well complemented by the expertise and technical know-how from the E-March team, to deliver international standard conversion kits for electric auto-rickshaws, cars and buses. This partnership complements our recent JV endeavour to enter and grow in the EV space. Rising environmental concerns are leading to new and more stringent emission norms worldwide, including in India. This is also prompting various governments to encourage the development and adoption of EVs on a mass scale. Affordable Conversion Kits for Autorickshaws is something that India needs in mass scale given the volumes of Auto’s in India. The running cost of a E-Converted Auto Rickshaw will be 1/5th of that of the Conventional Auto.”
“This is a huge opportunity for us, and these partnerships come at an opportune time, such that we can prepare and be ready for the anticipated demand in the coming years and capitalize on it. In line with our ethos, we continue to build on our technological capabilities while staying abreast with new trends and opportunities in the industry,” Rajesh Doraiswamy said.
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( With inputs from indiainfoline)