Wardwizard eyes fresh funds of USD 180 million

Vadodara-based Wardwizard Innovations & Mobility is planning to raise roughly USD 180 million by the end of FY25. Of this, USD 30 million is expected to be raised through an American Depository Receipts (ADR) issue.

“We see a good appetite for our ADR issue. It’s based on strong on-ground trends. We see it getting fully subscribed in the coming days,” said Yatin Gupte, Chairman and Managing Director of Wardwizard.

A significant portion of the funds raised will be allocated towards establishing their EV ancillary cluster, Gupte told Autocar Professional. This cluster aims to invite manufacturing partners to set up production units to develop essential components such as motors, batteries, chassis, steel parts, chargers and controllers.

Moreover, the company plans to invest nearly Rs 500 crore to set up its ancillary development centre, which will take about a year to become fully operational.

Capex plans

In the coming year, it will be looking to raise close to Rs 1,400 crore to expand its capacity. It aims to substantially add to its manufacturing facilities by establishing new lines for electric two- and three-wheelers and, eventually, electric four-wheelers.

For this to happen, the company plans to acquire 4,50,000 sqft of space for its manufacturing expansion. This set up will include one mega block for three-wheelers, with an annual production capacity of 25,000 to 30,000 units.

There’s more: Wardwizard also intends to set up a Centre of Excellence to test batteries at its ancillary unit. This will be made available for use for other players in the EV ecosystem, as well as for quality assurance and testing purposes.

Sales growth targets

The company aims to double its sales growth from around 45,000 units in FY24 to 75,000 to 1 lakh units by the end of FY25. They expect their recent foray into the electric three-wheeler segment with their Joy e-bike brand, as well as strong demand from urban areas to Tier 2 and 3 markets, to boost their numbers.

Speaking about the dip in sales after Wardwizard’s record high of March 2024, Gupte explained: “We’ve been through the entire cycle, from the pre-pandemic phase to the acceleration phase, as well as the market slowdown after the subsidy cut and the current phase-out phase. I believe many OEMs will recalibrate their existing products and price points again. This is the new real world that we’ve already factored in by not going for subsidies at all.”

Localisation and subsidiaries

Wardwizard has localised approximately 85% to 90% of its Joy e-bike Mihos, Gupte highlighted. The company has a subsidiary in China that manufactures battery cells and plans to build a gigahertz battery cell manufacturing plant in India within 18 months. Their Singapore-based R&D team has designed the battery cells, and Wardwizard has appointed EY to align its systems and processes with its ambitions.

The company is also expanding its two-wheeler capacity and prioritising the plant for battery assembly, controller assembly, motor assembly and wiring harness manufacturing.

Besides its foray into battery electric trucks with US-based Triton EV, Gupte said Wardwizard had confirmed orders to manufacture 10,000 electric trucks between 0.5 tonnes and 2.5 tonnes. They also plan to produce electric trucks for the UAE market over a three-year period.