The company expects to begin production of complete drivetrain solutions for electric cars and commercial vehicles in the next two years.
Pune-based auto component manufacturer Flash, which specializes in electrical and electronic components for two-wheeler and three-wheeler EVs, is all set to intensify its presence in the passenger car and commercial vehicle segments in the near term with plans for an initial public offering (IPO) on the horizon.
Speaking to Autocar Professional Sanjeev Vasdev, Managing Director, Flash Electronics India said the company expects to begin production of complete drivetrain solutions for electric cars and commercial vehicles in the next two years. To achieve this, the company is looking to raise an additional INR 200 crore through a fund raise.
“We are planning to do a fundraise in the next 4-5 months as we need to make some large investments to fulfill our demands of the EV business. I think a funding of $ 25 million to $ 50 million would provide ample runway for this business,” Vasdev said.
In 2019, the company raised seed funding of Rs 200 crore from private equity firm DMI Finance to expand operations. Going forward, the company is planning to hit capital markets for an IPO. “Our current focus is on scaling the business to the next level. We want to expand our EV vertical in the domestic and overseas markets. An IPO is certainly a possibility in the next two to three years when the time and scale are right,” the MD said.
At present the company's EV product portfolio includes traction motors, motor controller units, battery management systems, DC-DC Converters and vehicle control units.
In the last six years, the company's revenue has grown at a compound annual growth rate (CAGR) of 20 percent and it is targeting to clock Rs 1,200 - 1,300 revenue in the financial year 2022-2023 with EVs contributing eight to nine percent to the overall turnover. Riding on the soaring demand for green mobility, it intends to double its net revenue to about Rs 2,600 crore and plans to garner close to a third of its total business from the global EV parts business by 2025.
At present, the company has a total of six manufacturing facilities, four in Pune and one each in Germany and Hungry. One historical plant is also present in Faridabad where the company is not doing much expansion. In the next two years the company will also be focussing on establishing one tech center and setting up new plants in the Pune region.
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