Wednesday, March 5, 2008

Electrotherm Plans Rs 100 Cr Investment

Chennai: Enthused by the market response for its battery-run YObykes, Electrotherm (India) Ltd is planning to invest at least another Rs 100 crore in its electric vehicles division Indus Elec-Trans.

According to Avinash Bhandari, Director-Operations, Electrotherm, the funds will be utilised for R&D to develop new models and for adding facilities in its plant at Kutch.

Three verticals

The Rs 730-crore BSE-listed company is into three verticals – engineering, steel division and electric vehicles. Its engineering division, the mainstay of the company, manufactures melting and refining furnaces, heating and hardening equipment used in steel and foundry industry and the steel division is making products, including TMT bars, construction steel, stainless steel and DI pipes.

Bhandari was in Chennai to launch the company’s flagship e-bike YOSpeed. With this launch, the product is now nationally present, he said. Priced at Rs 36,000, YOSpeed is available in five colours. The 750-W vehicle can seat two and can achieve a maximum speed of 45 kmph. “A normal 4-6 hour recharge can run the bike 60-70 km,” he said.

The company currently has over 200 dealers across the country. In the last two years, the company has sold over 45,000 units. Now, with the national presence, “we expect to sell over one lakh units next financial year,” said Bhandari. The company has also tied up with ICICI and Citibank for vehicle financing.

After-sales service

To a question on facilities for repairing, servicing and availability of spares, he said since the technology is in-house and 80 per cent of the product is indigenised, there is no difficulty. Apart from having company-trained engineers and mechanics at its dealer workshops, Electrotherm is in the process of educating road-side garages and mechanics on the nitty-gritties of the vehicle and fixing small problems.

In 2006, the company diversified into electric vehicle manufacturing and invested Rs 60 crore for developing the technology in-house and creating a 2.8-lakh-bikes-a-year capacity at Kutch.

In March 2007, ICICI Venture Funds invested Rs 82 crore for 14.98 per cent stake in the company.

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