Ampere Vehicles, a wholly-owned electric mobility subsidiary of Greaves Cotton Ltd, today announced the acquisition of Noida-based E-3Wheeler company Bestway Agencies Pvt Ltd (BAPL). Through this acquisition, Ampere, the e-mobility arm of Greaves Cotton, will expand its presence in the e-rickshaw segment. The Noida-based firm sells e-rickshaws under the popular ELE brand.
For the first phase of the acquisition, an upfront cash consideration of Rs 7 crore is being made for 74 per cent stake, which includes share purchase and non-compete and non-solicit fees. The payment is subject to completion of pre- and post-closing obligations. Under the second phase, expected in April 2021, the consideration will be determined on the basis of the fair value of BAPL’s equity shares as on March 31, 2021. The payment will be made subject to completion of various conditions agreed between the parties.
Bestway Agencies clocked a revenue of Rs 34.73 crore in 2019-20 as against Rs 24.33 crore in 2018-19.
Through this acquisition, Ampere will expand its presence in the fast disrupting e-Rickshaw segment to become an integrated last-mile e-mobility player with strong presence in both E-2W and E-3W. E-rickshaw is one of the largest and fastest growing categories of electric vehicles in India and offers clean, comfortable and cost-effective mobility to customers, apart from increasing the daily earning potential of driver community.
The company foresees rapid growth in this segment as affordable mobility needs expand in the country and as the post-Covid thrust towards employment generation increases at the bottom of the pyramid. In addition to B2C segment, with this acquisition, Ampere will also be able to offer a complete product portfolio to its B2B customers who have requirements for E-3W as well for both people and cargo mobility, said the company.
Nagesh Basavanhalli, MD & CEO of Greaves Cotton Ltd, and Director, Ampere Vehicles, said that the acquisition will further strengthen Ampere’s relationship with the Indian consumer by adding last-mile mobility products and services for uninterrupted journey, enhancing productivity across the e-2W and e-3W spectrum. Combining Ampere’s and Bestway’s expertise will help in further boosting company’s growth and strengthen market positioning as the leading e-mobility business in India.
B V R Subbu, Chairman, Ampere Vehicles, said, “Within two years of Ampere’s acquisition by Greaves, the company has grown phenomenally and has achieved several milestones thereafter to become a preferred and affordable E-2W brand under personal mobility segment in the country. With the acquisition of Bestway, Ampere has now embarked on a new journey to provide clean, safe and sustainable shared mobility solutions through E-3W and become a leading player in building and strengthening the country’s EV ecosystem.”
Source: Business-Standard