PMI Electro Mobility Solutions plans to raise Rs 250 crore for production expansion

PMI Electro Mobility Solutions, a prominent electric bus manufacturer, has announced plans to raise approximately Rs 250 crore to partially finance the doubling of its production capacity and to fulfil working capital requirements, as revealed by the company's CEO, Aanchal Jain.

The company is in the process of establishing a new manufacturing facility in Pune, and it is anticipated that approximately Rs 150 crore will be invested in this expansion project.

PMI Electro Mobility Solutions currently possesses an annual manufacturing capacity of 1,500 units, which can potentially be increased to 2,500 to 3,000 units through the introduction of multiple shifts at its existing facility in Dharuhera, Haryana.

Aanchal Jain said, "We have another construction project underway in Pune, which will contribute an additional 3,000 units of annual capacity to our production."

The Pune plant operates as a joint venture with BeiqiFoton Motors of China, with whom PMI has a technical collaboration.

While the exact investment figure for the new Pune plant was not disclosed, Jain mentioned that it is expected to amount to approximately Rs 150 crore from PMI's side. The land for this facility is owned by BeiqiFoton, and PMI is responsible for establishing the manufacturing unit.

Funding for expansion 

In terms of funding, Jain explained, "We've been attempting to secure funding because, at our current production capacities, we haven't initially planned for expansions, and we need funds for that."

When questioned about the amount PMI aims to raise, she said, "We are being very cautious about the funding. Currently, we are looking to raise approximately Rs 250 crore at this stage. We intend to approach it incrementally, as and when necessary, with plans for future rounds."

The funds obtained will be allocated towards capacity expansion and addressing working capital requirements, according to Jain. The doubling of production capacity is slated for completion by the "end of next year or early 2025" to ensure that PMI can meet its delivery commitments.

Jain elaborated on PMI's current order book, which includes 2,500 units scheduled for delivery over the next two to three years. Additionally, PMI currently operates 1,200 electric buses across 27 cities in India.

Out of the pending orders, around 2,000 pertain to a contract secured from the Delhi government, marking a significant entry into a metropolis for PMI.

PM-eBus Sewa

PMI's electric buses are presently in operation in several locations, including Leh, Ladakh, Shimla, Rajkot, Surat, Kerala, Himachal Pradesh, Bhubaneswar, and Uttar Pradesh, with the latter being its largest market.

Given PMI's extensive experience in operating electric buses in smaller cities, the company is enthusiastic about the opportunities presented by the 'PM-eBus Sewa' scheme. This initiative aims to provide 10,000 electric buses to 169 cities under a public-private partnership (PPP) model.

Jain expressed optimism about the growth prospects for the electric bus industry, stating, "I think it will be a great boost for the whole industry and for us. Currently, the environment is such that the market is expanding. Even if you were to maintain your constant market share, it's still a significant opportunity for everyone."

She emphasised PMI's commitment to bidding for these contracts and enhancing operational efficiency. Importantly, these contracts are spread out over time, aligning with PMI's plans to increase production capacity.

(With PTI Inputs)