Sharda Motor Industries Limited (SMIL) (TCKR: SHARDAMOTR), one of the leading automotive component manufacturing groups in India and Kinetic Green Energy & Power Solutions Limited, a Kinetic Group company, have entered a joint venture (JV) agreement, to develop Battery Packs with Battery Management Systems (BMS) for electric Vehicles & stationery applications.
The JV company will undertake design, development & assembly of lithium-ion battery packs along with BMS. The focus of the company will be to develop battery packs for the rapidly growing electric vehicle market in India & other segments of energy storage applications.
The company has inked a technical collaboration with Indian Institute of Technology, Madras, India's premier academic and research institution in India for the same. Under the technical collaboration agreement, Centre for Battery Engineering and Electric Vehicle (CBEEV), the research and development centre of IIT Madras, will provide technology for Li-ion battery energy storage for electric 2 wheelers, 3 wheelers and other small electric vehicles to the JV. The technology developed at IIT Madras includes advanced thermal design to overcome adverse temperatures in India, mechanical designs to overcome vibrations due to varying road conditions, as well as Battery Management System designed by CBEEV IITM keeping in mind Indian road conditions.
The JV, where Sharda Motor will hold majority of the equity, will set up a state-of-the-art manufacturing facility in Pune and is expected to be operational by Q3 of FY 22. As per a statement made by the company's management, "This JV is the first major step for Sharda Motor's foray into EV component manufacturing. The EV segment is expected to be a significant driver of growth in the next few years."
While announcing the joint venture, Mr. Aashim Relan, CEO of SMIL said, "We are excited to enter into the Electric 2 W & 3 W Market which is expected to grow very fast in the near future. The JV will mark our entry into EV components which highlights our focus on clean mobility, new product development, innovation and technology supported by Research and Development."
Ms. Sulajja Firodia Motwani, Vice Chairperson of Kinetic Eng. and Founder and CEO of Kinetic Green said, "We are delighted to have entered into a JV with Sharda Motor Industries. Their undeterred focus on manufacturing high-tech products for clean mobility has been a common thread between both the entities. This joint venture is progression of the pioneering efforts by Kinetic group in developing EV technology, including Electric vehicles manufacturing as well as core technology and components. Our group companies are working tirelessly to contribute to the development of EV sector and ecosystem in India and battery and BMS are at the heart of EV technology."
Shares of Sharda Motor Industries Ltd was last trading in BSE at Rs.459.1 as compared to the previous close of Rs. 463.05. The total number of shares traded during the day was 8918 in over 713 trades.
The stock hit an intraday high of Rs. 474 and intraday low of 451.5. The net turnover during the day was Rs. 4089127.