Mahindra & Mahindra Ltd., on Wednesday, announced the acquisition of a majority stake in Bangalore-based REVA Electric Car Co Ltd. Following this, REVA Electric Car Co Ltd. will be renamed Mahindra REVA Electric Vehicle Co Ltd.
Under an agreement signed by both the companies, M&M will own 55.2 per cent equity in the renamed Mahindra REVA by a combination of equity purchase from the promoters and a fresh equity infusion of over Rs 45 crore (approximately $10 million) into the company. The buy-out makes the Mahindra group a strong global player in the electric vehicle space, says a release.
Post-the buyout, the board of Mahindra REVA has been re-constituted under the chairmanship of Pawan Goenka, President Automotive & Farm Equipment Sectors, Mahindra & Mahindra. The new board includes five nominees from Mahindra & Mahindra, two from the Maini family and one from AEV LLC, California (co-founders of REVA). An independent director will be added to the board subsequently. Mr Chetan Maini will continue to play a leading role in Mahindra REVA as Chief of Technology and Strategy, the release adds.
Under its core sustainable mobility initiative, Mahindra has been working for the last 10 years on developing green technologies and has demonstrated diesel hybrid technology on the Scorpio and hydrogen Alfa three wheelers. Mahindra has a pilot fleet operating with 100 per cent bio-diesel and was the first to launch micro-hybrid technology in India with around 50,000 such micro-hybrids on the road today. In EVs (electric vehicles), over and above the electric three-wheeler Bijlee developed in 1999, it is also currently working on an electric version of its mini-truck Maxximo. Mahindra REVA’s EV technology will be adapted for these and other M&M vehicles. Access to strong EV technology will strengthen Mahindra’s other current sustainability initiatives, the release says.
REVA is currently marketing its products in 24 countries across the world with an overall vehicle population of over 3500. REVA recently premiered its next generation electric car models, the NXR and NXG. Mahindra REVA will now have access to Mahindra’s vehicle development technology and distribution network, significantly enhancing its ability to launch a state-of-the-art electric vehicle for global markets.
“With issues such as climate change and carbon footprint taking centre stage globally, eco-friendly transportation becomes the need of the hour. Mahindra already has an established sustainable mobility solutions programme and our association with REVA will only help us further expand our green footprint both in India and overseas,” the relese quotes Anand Mahindra, Vice-Chairman and Managing Director of Mahindra & Mahindra, as saying.