AMO Electric Bikes, which is into manufacture of electric two-wheelers in India, is planning capital expenditure of ₹200 crore to expand capacity and to enhance its R&D capability, a top executive said.
The funds will be either mobilised from commercial banks or from private equity investors, the executive added.
“Currently we have planned investment worth ₹200 crore for capacity expansion, which will be in place by the end of December,2022,” said Sushant Kumar, founder & MD, AMO Electric Bikes.
“We plan to diversify our products to cater to and expand markets in North, South and West India, including states such as U.P., Karnataka and Maharashtra. We intend to capture these markets as they reflect high demand,” he said.
“We have also onboarded public sector banks who have generously taken interest in our plans. In the near future, we will be open for equity financing, and are evaluating options to choose the right path for the company,” he added.
He said funds will be used to invest in infrastructure to scale up production with advanced equipment, and in improving research and development to create solutions in the supply chain and become more self-reliant.
“We primarily want to improve our efficiency [of electric bikes] from 90% to 95%. The given investment will be used to scale up production for e-2 wheelers exclusively. This is to match the 10 lakh units of e-2wheelers projected by the government,” he added.
Over a period of 3 years, he said, the firm had built a strong network. Currently, having 4 models with eight variants available for customers to purchase, the firm now plans to add 3 high-speed models by Diwali, and also 2 low-speed models.
“We aspire to add 300 additional dealerships and take the network tally to 500 in the first half of 2023,” he said.
In FY-22, the firm had sold about 10,000 units of electric bikes and the target is to sell 80,000 units by FY23, Mr. Kumar said.