Endurance Technologies’ acquisition of Maxwell Energy paves way for the auto ancillary company to enter the fast growing electric vehicles (EV) segment. This should allay investors’ concerns over Endurance’s lack of EV exposure until now. Maxwell, a subsidiary of UK based Ion Energy provides a battery management system for EVs.
Aurangabad headquartered Endurance will pay 51% of the total consideration of Rs 310 crore upfront while the rest will be paid as a variable annual pay-out dependent on the financial performance between FY23 and FY27. Maxwell has been focused on designing and developing advanced electronics targeting mobility and energy storage solutions. It’s revenue is expected to increase two-fold to Rs 40 crore in FY23 from the previous year. It has a cumulative order book of Rs 150 crore from the domestic and export markets. A large chunk of the order book is from India’s leading two-wheeler EV makers.
Despite its small size, Maxwell’s acquisition is a good fit for Endurance. The latter will set up a separate R&D lab in Chakan to develop more products with the help of Maxwell in the segments of telematics, high voltage battery management system for four-wheelers and commercial vehicles and embedded electronics.
AgenciesThis would expand the addressable market for Endurance. It won orders worth Rs 740 crore in the past fiscal year. Currently, it has received inquiries worth Rs 2,080 crore from various automakers.
Despite lower two-wheeler volume in the domestic market, the revenue of Endurance grew by 15% to Rs 7,459 crore on account of higher realisation following price revision, market share gain in alloy wheels and brake and ramp-up in volume of ABS to two-wheeler makers. India accounts for 72% of the company’s total revenue, while the balance is from European operations.
Source: Economic Times