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PMI Electro Mobility seeks Rs 250 Cr funding for production expansion
Industry News- Sep 06,23
The company, currently in the process of establishing a new manufacturing facility in Pune, anticipates making an estimated investment of around Rs 150 crore to facilitate the expansion.
PMI Electro Mobility Solutions, the electric bus manufacturer, is planning to secure approximately Rs 250 crore in funding to partially support the expansion of its production capabilities and to meet its working capital needs, as revealed by the company's CEO, Aanchal Jain.
The company, currently in the process of establishing a new manufacturing facility in Pune, anticipates making an estimated investment of around Rs 150 crore to facilitate the expansion.
PMI Electro Mobility Solutions (PMI) currently possesses an annual manufacturing capacity of 1,500 units, which can potentially be increased to 2,500 to 3,000 units through multiple shifts at its existing plant located in Dharuhera, Haryana.
Aanchal Jain stated, "We are also constructing a new facility in Pune, which will provide us with an additional annual capacity of 3,000 units." She further explained that the Pune facility is a joint venture with BeiqiFoton Motors of China, with which PMI has established a technical partnership.
When queried about the exact investment amount for the new plant, she did not provide a specific figure but indicated that it is estimated to be approximately Rs 150 crore from PMI's side.
Regarding the fundraising efforts, Jain mentioned, "We have been actively seeking capital because, at our current production capacity levels, we need funding for the planned expansions." When asked about the amount they aim to raise, she responded, "We are being very cautious about the fundraising process. Currently, we are targeting a sum of approximately Rs 250 crore. We intend to raise funds incrementally, as needed, and plan for additional rounds in the future."
Jain added that the funds raised will be utilized for both capacity expansion and meeting working capital requirements.
She anticipates that the doubling of production capacity will be completed by "the end of the next year or early 2025," as PMI prepares to fulfill its existing orders. She disclosed that PMI currently has an order book of 2,500 units to be delivered within the next two to three years and has already deployed 1,200 electric buses in 27 cities across India.
Among these orders, approximately 2,000 are for a contract secured from the Delhi government, marking a significant entry for PMI into a metropolitan city.
PMI's electric buses are currently operational in various locations, including Leh, Ladakh, Shimla, Rajkot, Surat, Kerala, Himachal Pradesh, Bhubaneswar, and Uttar Pradesh, where it enjoys its largest market presence.
Given PMI's experience in operating electric buses in smaller cities, Jain expressed enthusiasm for the "PM-eBus Sewa" scheme, which aims to provide 10,000 electric buses to 169 cities under a public-private partnership (PPP) model. She believes this initiative will greatly benefit the industry and PMI and intends to actively participate in the bidding process.
Jain concluded, "As more of these contracts become available, we will certainly bid for them and strive for efficiency. Fortunately, these contracts are spread over time, allowing us to leverage our additional production capacity."
Source: Business Standard
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