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Olectra Greentech doubles electric bus production, eyes 9,000 orders
Industry News- Sep 14,23
Olectra Greentech aims to broaden its product portfolio by venturing into the manufacturing of electric tippers.
Olectra Greentech, a prominent electric bus manufacturer in India, has unveiled ambitious plans to enhance its annual production output. KV Pradeep, the Chairman and Managing Director, disclosed that the company intends to double its current yearly production from 1,250 buses to an impressive range of 2,500 to 3,000 buses. Furthermore, Olectra Greentech aims to broaden its product portfolio by venturing into the manufacturing of electric tippers.
During an interview with a television channel, Chairman Pradeep also revealed that the company possesses a robust order book, boasting an impressive 9,000 buses in demand. He emphasised that their production is proceeding according to the established plan, with the goal of delivering these orders within the next 24 to 30 months.
Olectra Greentech gained significant attention when it secured India's largest electric bus order a couple of months ago from the Maharashtra State Road Transport Corporation (MSRTC). Under this monumental agreement, the company is set to supply a total of 5,150 buses to the state government body at a contract value exceeding Rs 10,000 crores. This achievement propelled the company's stock, which has witnessed a remarkable doubling in value over the past six months.
To accommodate this surge in demand and realise their production goals, Olectra Greentech is actively establishing new manufacturing facilities. These facilities are expected to elevate their overall production capacity to 5,000 units per year. Their existing manufacturing plant in Hyderabad, with an annual capacity exceeding 1,500 electric buses, is complemented by upcoming plants in Himachal Pradesh and North India, ensuring the realisation of this capacity target by 2024.
Notably, in May 2022, Olectra Greentech inked an agreement with the Assam State Government to deliver 100 electric buses for deployment in Guwahati. This partnership is aligned with the Indian government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, facilitating the expansion of eco-friendly public transportation.
Addressing pricing challenges, Chairman Pradeep acknowledged that a significant portion of components, including the costliest—batteries, is imported. He highlighted that batteries alone account for approximately 40% of the cost, and the company aims to adhere to the Indian government's guidance by localising 50% of the remaining 60% of components. Olectra Greentech has already made substantial progress, with 60% of its non-battery components sourced domestically. In terms of pricing, the buses are priced in the range of 1.25 crore to 2.5 crore.
Regarding funding for their expansion plans, Pradeep confirmed that the board has sanctioned a fundraising initiative of Rs 800 crore, with Rs 400 crore being contributed by the promoters. The remaining funds will be sourced from banks and financial institutions, with multiple institutions expressing interest. A final decision on funding will be reached within the next three months.
When queried about potential entry into the passenger vehicle segment, Chairman Pradeep hinted that this would likely occur as a separate entity from the listed company.
Additionally, Olectra Greentech is committed to establishing a widespread electric bus charging infrastructure across India. They aim to set up more than 1,500 electric bus charging stations in multiple cities, partnering with various urban transport agencies to provide comprehensive electric mobility solutions, encompassing vehicles, charging infrastructure, and maintenance.
Source: newindianexpress.com
Olectra Greentech
electric bus manufacturer
India
Chairman KV Pradeep
Assam State Government
FAME scheme
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