Gensol Engineering Ltd has today, 7th July 2022, signed a termsheet to pick up majority stake in a US-based electric vehicle manufacturing startup.
The investment is intended to accelerate Gensol’s plan to deliver a robust domestically manufactured EV in India. With this deal Gensol foresees an increment in revenue by INR 500-600Cr for FY-24.
Gensol aims to set up its R&D center for technology development and a start of production (SOP) in the first quarter of 2023 in Pune, India with a capacity of 12000 cars / year in the first phase. The company is also hiring a team of more than 150 automobile engineers & designers for this venture.
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Piquantly, Gensol aims to take this EV market to the next level of technological advancement and serve a wide variety of the customers’ mobility needs – passenger, fleet and cargo – with different designs.
This domestically produced ‘Make in India’ vehicles will deliver a cruising range of around 200 km per charge and can be fully charged in just 2 hours.
Importantly, India is committed towards a climate-motivated push to traverse its difficult path of decarbonization. Therefore, EV is one of the front-runners for government action, as mass consumer transport electrification is not only a necessary path to net-zero but also can significantly boost national economies.
Keeping in mind that the transport sector is one of the largest sources of greenhouse gas (GHG) emissions, so its progress will be pivotal for facing the formidable climate change challenge.
What is more, this acquisition can prove to be a very momentous change for Gensol, as it will help pump up its topline to the tune of 500-600Cr during FY-24.
Shares of Gensol Engineering Ltd was last trading in BSE at ₹574.90 as compared to the previous close of ₹569.15. The total number of shares traded during the day was 40964 in over 67 trades.
The stock last hit in BSE,
- Intraday High of ₹ 603.60
- Intraday low of ₹ 582.05