Mumbai-based engineering company Greaves Cotton, has entered a definitive agreement to acquire a majority stake in Ratan Tata backed EV company Ampere Vehicles. The company is set to acquire a 67% stake for ₹77 crores during the first phase, by the end of this year.
Greaves Cotton is expected to acquire another 13% stake in the coming three years, valuing the deal at ₹115 crores overall.
Post acquisition, Ampere Vehicles will become an independent subsidiary of Greaves and Hemalatha would continue to remain as the CEO.
Coimbatore-based Ampere Vehicles was founded by Hemalatha Annamalai in 2008. The company manufactures and also designs, develops and markets electric vehicles including cycles, scooters, and three wheelers.
So far, the company has reported revenue of ₹18.5 crore in FY18, in a note released by Greaves Cotton on BSE. It also posted a revenue of ₹16 crores in the FY17, showing a steep growth.
Talking about the acquisition, Nagesh Basavanhalli, MD & CEO, Greaves Cotton, said, “With this strategic acquisition, we will be able to address a wider range of customer segments with clean energy mobility solutions. Greaves and Ampere will be a synergistic combination of our excellence in frugal engineering & manufacturing with a new age electric mobility solutions company.”
Stakes owned by Ratan Tata, chairman emeritus, Tata Group, and Kris Gopalakrishnan, co-founder, Infosys, will also be bought by Greaves Cotton.
Earlier this month, another Bengaluru-based EV startup Ultraviolette raised ₹6 crores from TVS in series A round.
As the government focuses more on the clean energy for the transportation sector, more startups will look to leverage the rising potential in the domain.