Over the next two to three years, PG Electroplast (PGEL), a prominent provider of plastic molding and electronic manufacturing services, anticipates that its electric vehicle (EV) division will generate between ₹500 and ₹600 crore in sales.
The company will need to invest $3–4 million in order to start its EV operations with a new capacity. It is anticipated that the overall investment over the course of two years will reach $5–6 million as the business grows.
According to MD-Operations Vikas Gupta, they are confident in sustaining return ratios in line with the financial benchmarks, despite the little investment and the fast asset turnover of the EV market.
On November 18, PG Technoplast, a wholly-owned subsidiary of PG Electroplast, inked a final contract to become Spiro Mobility’s sole manufacturing partner in India.
As part of the deal, PG Technoplast will be in charge of setting up and running production plants for lithium-ion batteries, electric cars, and associated parts.
In accordance with Spiro Mobility’s requirements, the subsidiary will also manage the acquisition of raw materials and parts.
In order to expand its market reach, Spiro Mobility is also setting up its distribution network in India and looking into joint ventures with fast commerce platforms.
According to Gupta, the company hopes to produce 20,000 EVs in its first year of operation.
The ₹380 crore projected capital expenditure of PG Electroplast is on schedule and should be finished by the end of 2024–2025 (FY25).
For the EV business, the corporation wants to keep the return on capital employed (RoCE) between 20 and 25 percent.
Over the past year, the company’s shares have increased 188%, and its market capitalization is ₹18,093 crore.