Omega Seiki, Rabbit Express join hands to enter African market

by Nilesh Wadhwa 25 Mar 2022

File photo: Uday Narang, chairman, Anglian Omega and Dr Deb Mukherjee, MD, Omega Seiki Mobility at the unveiling of Sun Ri (three-wheeler cargo), Ride (E-rickshaw), and Stream (passenger auto-rickshaw).

Omega Seiki Mobility has entered into a partnership with Rabbit Express, an Egyptian company to enter the African market. In an interaction with Autocar Professional, Dr. Deb Mukherji, MD, Omega Seiki Mobility has revealed that as part of the tie-up, the company will supply around 20,000 electric two and three-wheelers. Rabbit Express which is one of Egypt’s largest last-mile delivery companies has a fleet of 5,000 vehicles and caters to the e-commerce sector.

Both partners are also planning to set up a full-fledged manufacturing facility as part of the JV, which will see Rabbit Express holding 76 percent stake and the remainder with the Indian entity. The JV will look at sales in Egypt, Tunisia and Morocco market.

Rabbit Express is 40 percent owned by Ibnsina pharmacy the biggest pharma distribution company in Egypt region, which has a market cap of $2.2 billion (Rs 16,783 crore). It serves more than 35,000 customers with more than 375,000 orders each month through its warehouses, distribution and logistics fleets.

“In phase 1, we will deliver 100 vehicles to them in CKD route. We will also begin localisation by next year,” says Dr. Mukherji. The JV is expected to see total investment $50 million (Rs 381 crore) to start with where Omega will invest around Rs 100 crore.

At present, OSM has a manufacturing capacity of around 12,000 units per annum at its Faridabad facility. It plans to expand capacity to produce 30,000 units per annum and build facilities across the country including Pune (for two-wheelers), Chennai (for passenger three-wheeler) and Andhra Pradesh to produce electric trucks in partnership with Temsa 

New products, investment and funds
It is no secret that while the electric vehicle segment is an upcoming and exciting market, it also means that there is a need for higher investments to be made. For the fiscal year 2022, OSM is expected to have wholesales of 1,600 units and a revenue of Rs 60 crore. For FY2023, the company is targeting a revenue of Rs 500 crore. This will be achieved on the back of a healthy order book and aggressive new product launches, which includes a 1.5-tonne e-truck, 3.5-tonne e-truck, electric autorickshaw (3W passenger), a B2B e-2W and an electric tractor too. To attain and scale up the business, the company will raise Rs 600-700 crore as part of its Series A funding round by Q2 FY2023.