Mumbai: USD 1.5 billion diversified auto component major Anand Group is planning to invest over USD100-150 million in future mobility business led by ventures in electric vehicle space.
The group that runs over a dozen joint venture businesses successfully in India for over six decades is already scouting for acquisitions including partnerships in UK, Europe, Israel, Japan amongst other markets to participate in the entire value chain of electric vehicles, right from battery, motors, charging system for two wheelers to cars.
The group aims to be amongst the top 3 players in the country in the EV component segment and sees a business potential of half a billion dollars in the coming five years from this space.
The Group is in discussion with companies from UK, Israel, Germany and Japan for an acquisition, alliance or a joint venture and its group president Sunil Kaul – who heads future mobility has started meeting prospective partners around the world.
“We are on the lookout for acquisitions and partnerships. We are in the middle of discussions with multiple companies, which will help us accelerate our penetration into the future mobility or clean mobility space,” told Kaul, adding,”We are going all out to participate in the fast transition electric two and three wheeler space. Hence we are preparing ourselves by entering into partnerships, getting into engineering of parts, testing and also into sourcing – to generate a significant part of our total business going ahead.”
There will be at least four to five different companies, largely in the form of Joint venture companies catering to future mobility space – right from motors, controllers, transmission system, light weighting material amongst others.
“Our target is to generate USD500 million worth of business from future mobility in the coming three to five years. By then the group turnover would have doubled to USD3 billion, by 2026-2027,” said Kaul.
To be sure, just from one of its group companies Anand Mando eMobility (AMeM) it is eyeing a revenue of over Rs 750 crore by FY 2025-26. AMeM will further invest over Rs 150 crore in the next three years to expand the manufacturing capacities beyond 2 Wheelers components. To extend the footprint and revenue from the EV market, AMeM targets to venture into 3 & 4 – wheeler EV components by 2025. AMeM’s product range will have motors from 1KW to 170 KW. The current annual production of the AMeM plant is 200,000 motors which will be ramped up to 5,00,000 for EV Motors & Controllers over the next three years. As part of the new business blueprint in the EV component segment, the group plans to capture more than 30% market share with a full range of products produced locally.
Kaul believes the demand from the customer is going to change with disruptions in future mobility and Anand Group wants to be ready to participate in this new direction.
“The market for electric vehicles is set to grow exponentially. Vehicle makers will need a quality local solution and Anand Group can contribute to this transition in a reliable, robust and a timely manner,” he added.
The group president, who is also the chief technology officer for the group says, Anand is currently into motors and controllers, shortly the group is getting into chargers for two wheelers and human machine interface products, “we are also exploring areas like Battery Management System and Battery Pack Manufacturing. The idea is to be a complete solution provider for two and three wheeler segment and also participate in growing passenger vehicle space,” added Kaul.
Anand group offers a broad range of automobile components, including ride control products, drivetrains, synchroniser rings, climate control products, engine coolants, brake systems, sealants, additives, car care products, safety products, steering wheels including electric power steering wheels. Group has also ventured into manufacturing EV components that include hub motor, controller, and centre motor. The group has a turnover of over USD 1.5 billion and comprises 20 companies, 13 joint ventures, and 7 technical collaborations spread over 60 locations in India.
