PMI Electro Mobility aims to commission new plant in Pune in 2025
The Gurgaon-based EV start-up is eyeing to raise Rs 300 crore in debt, and is bullish on the demand for electric buses from various State Transport Undertakings (STUs) in the country.
Gurgaon-based electric-bus manufacturing start-up PMI Electro Mobility Solutions, which operates from its up to 3,000-unit-annual-capacity plant in Dharuhera, Haryana, is planning to commission its second facility, currently being setup in Pune. The company is aiming to double its production capacity to nearly 6,000 units per annum with the greenfield expansion, which is slated for CY2025.
Claiming to be the largest electric bus supplier to Tier-2 cities like Rajkot, Surat, and Bhubaneshwar, PMI Electro Mobility Solutions also aims to double its revenues, which were pegged at Rs 600 crore in FY23, to Rs 1,200 crore by FY25. The company is bullish about the robust demand for electric buses in the 9- and 12-metre-size categories from various State Transport Undertakings (STUs) in the country, and is getting future ready to cater to the growing demand as more State governments switch to EVs to reduce fleet emissions.
While the company presently has an order book of 2,500 electric buses, it is looking to foray into metro cities, starting with the national capital from January 2024. As part of the 2021 CESL tender, PMI Electro Mobility Solutions has been awarded an order of 2,000 electric buses by the Delhi Transport Corporation (DTC), and the company is slated to begin deliveries early next year to fulfil the entire order in batches of around 150-300 buses every month.
According to Aanchal Jain, CEO, PMI Electro Mobility Solutions, “Our mission is to contribute to the greater good of sustainable and greener transportation. We will start plying 9- and 12-metre electric buses in Delhi starting next year. Of the order for 2,000 e-buses, around 1400 are going to be nine-metre-long buses, while approximately 600 buses are going to be of the longer 12-metre variety.”
The company says its foray into Tier-1 cities is only coming after it has made a mark in ensuring accessible and equitable public transport for the masses in Tier-2 and Tier-3 cities over the past six years. “Making comfortable public transportation accessible was our primary objective when we embarked on this journey in 2017, and transitioned from being a bus-body coach builder to an EV manufacturer,” Jain said.
“So far, our buses have clocked around 7 crore green kilometres, and for every kilometre that an electric bus runs, there is a carbon emission reduction of around 2.4kg. While these number do contribute to the sustainability, we are also focused on making public transportation equitable for the masses,” Jain added.
Eyeing Rs 300 crore in fundraise
As it anticipates growing demand for electric buses from STUs across the country, the company is also feeling the need for more working capital, to be deployed across product development, as well as capacity expansion. PMI Electro Mobility Solutions is eyeing up to Rs 300 crore in fresh funds, to meet its ambitions and growth targets of doubling its revenues by FY25.
According to Jain, “As our order book is expanding, so are our needs for more working capital. We are in the process of a formal fund raise in the range of Rs 250-300 crore. This is the first time that we are raising capital from the market.” To ensure minimal liquidation of its stake, PMI Electro Mobility Solutions says it is eyeing to raise this capital, majorly in debt. The fresh capital will arm the company to also strengthen its R&D capabilities. “We are being very prudent about how we raise money, and are only going to raise capital on need basis,” Jain added.
The company is hopeful of winning more orders for electric buses in the upcoming PMe-Bus Sewa scheme, which is likely to be rolled out in the next four-five months. “We are very excited about it, and want to participate in the scheme when the tenders for aggregated demand from various States and cities are floated,” said Jain, while pointing out that the company is presently realising its focus on the domestic market.
“India is a substantial public mobility market, and the demand for e-buses looks steady over the next decade,” she added. The company is optimistic about the increased focus on sustainable transportation along with the government’s policy push is driving growth in this space,” she added.
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The company has a strong presence in India with eight production sites.