RECC is learnt to be in talks with utility vehicle major Mahindra & Mahindra (M&M) for an equity partnership. According to sources, two of the stakeholders in RECC – the US-based Global Environment Fund and Draper Fisher Jurvetson – may exit by selling their stake to M&M. When contacted, both M&M and RECC refused to comment on the “speculation” of M&M buying a stake in RECC.
Autocar Professional is yet to receive responses from Global Environment Fund and Draper Fisher Jurvetson. Both these companies invested 10 million dollars each in the Bangalore- based RECC.
Going by M&M’s acquisition strategy, the Mumbai-based company will pick up at least a 51 percent stake, if the deal takes place. The move will boost M&M’s capabilities in developing alternate propulsion technologies. RECC is currently busy preparing for its next model, the trial production of which will start by end-2010.
Meanwhile, Meanwhile on April 7, Chetan Maini, deputy chairman and CTO, RECC, received the ‘Entrepreneur of the Year’ award instituted by the All India Management Association in New Delhi. The award recognises the contributions of leaders from different fields, who epitomise strength, ingenuity, knowledge, foresight, who have excelled in their respective spheres with vision and inspiration.
Maini said: “I had never imagined that when I followed my passion to build electric cars that I would receive such recognition. It has been a real challenge to be the first company to commercialise electric cars but today I am proud to say that we have the largest fleet of electric cars in the world. There is still a great deal of work to be done, but I am pleased with the impact Reva has had and my contributions in this journey.”