Salzer Electronics has planned for diversify into the electric vehicle charging infrastructure business in partnership with an Austrian firm.
In a stock exchange filing, Salzer said that it will form a joint venture with Kostad Steuerungsbau GmbH. To be called “Salzer Kolstad EV Chargers Pvt Ltd”, the joint venture will engage in the manufacturing of DC fast charging stations for electrical cars and commercial vehicles like trucks & buses. The JV, which will operate in India, will also engage in components and systems of such EV chargers, Salzer said.
Through this technical alliance, Kostad would provide technical know-how and requisite technology support to Salzer for the production of EV charging stations and related components, the filing said.
Salzer Electronics will be the single largest shareholder with 26 per cent equity stake in Salzer Kolstad EV Chargers Pvt Ltd. While Kostad would hold 16 per cent equity in the joint venture company, E-March LLC – a technology company with abundant resource and knowledge in Power electronics will hold 6 per cent. The remaining 52 per cent will be held by private investors, Salzer said.
The total investment in this venture would be Rs.18 crore, 26 per cent of which (or around Rs.4.68 crore) will be borne by Salzer over a period of 12 months.
Commenting on the new alliance with Kostad, R. Doraiswamy, Managing Director, Salzer Electronics, said, “Through this JV, Salzer Kostad EV Chargers Pvt Ltd, we would bring DC fast-charging stations for e-vehicles to the Indian market. Our manufacturing capabilities would be well complemented by the technical knowhow from the Kostad team, to deliver international standard DC fast-chargers for e-vehicles and components for EVs in India. We will also be supplying to the South East Asian markets and Middle East, apart from India. However India will be our key and most important target to begin with.”
Discussing the rationale of the diversification, Salzer observed that the global industry for EVs has been on the rise in the recent past. Stringent emission norms and environmental concerns are expediting the adoption of electric vehicles in various nations. The Indian Government is also propagating the awareness and adoption of EVs and this is likely to open up huge opportunities for the company, the filing added.
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