As India plugs into the global megatrend of electric mobility, automotive industry players in the market are embarking on new strategies for growth in a new era of mobility. One of them is Solapur, Maharashtra-based Precision Camshafts.
The company has acquired a 51 percent stake in a Dutch firm Emoss Mobile Systems, which manufactures electric commercial vehicles (CVs) and drivelines, and battery packs to convert conventional CVs into full electric CVs. The Rs 467-crore Precision Camshafts signed the deal for Rs 58 crore.
With the latest acquisition, the Indian component manufacturer gets an opportunity to play in the relatively matured electric mobility markets in the West and, equally importantly, in the emerging e-mobility market in India. "One of the first things to do is to present this case (of converting conventional CVs to EVs) to the government in India. The technology by Emoss is already recognised by the governments of countries like Netherlands, New Zealand and Canada," Yatin Shah, chairman and managing director, told Autocar Professional.
According to Shah, Emoss Mobile Systems can full electrify commercial vehicles with payloads of 3.5 tonnes to 50 tonnes. The conversion currently takes 60 to 70 days and costs between 35,000 euros (Rs. 28 lakh) and 50,000 euros (Rs. 40 lakh). The claimed driving range in a single charge is 350 kilometres, and an additional 150 kilometres with a range extender. The technology may be offered to CV OEMs in India soon. Emoss Mobile Systems will also be pitching the technology to European CV majors.
The deal with Emoss is the third acquisition by Precision Camshafts in 7 months. It is part of the company's strategy to grow sustainably in an age of mass scale electric mobility. "The internal combustion engine is not under threat in the short or medium term, (but) we should not be oblivious to the fact that this will happen," says Shah. In each of the inorganic moves, Precision Camshafts will acquire full ownership in "3-5 years". Any more acquisition in the pipeline? "It's time for us to pause and consolidate now," says Shah as he works on a "masterplan" for the company which started in 1992 in a small facility for semi-machining of camshafts.