The joint venture, where Sharda Motor will hold majority of the equity, will set up manufacturing facility in Pune and is expected to be operational by Q3 of FY22.
Sharda Motor Industries has announced a joint venture agreement with Kinetic Green Energy & Power Solutions to develop battery packs with battery management systems (BMS) for electric Vehicles & stationery applications.
Follwing the JV announcement, the Sharda Motor scrip jumped 8.01% to currently trade at Rs 493.50 on the BSE. The scrip surged 15.99% to hit the day's high at Rs 530 in trade today.
On the BSE, 73,613 shares of the company were traded in the counter so far as against an average trading volume of 8,071 shares in the past three months.
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.
"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, the company said in a statement.
Aashim Relan, CEO of Sharda Motor Industries, 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."
Kinetic Group is a part of the Pune-based Firodia Enterprise, one of the pioneering automotive families in India. The Group has developed smart electric vehicles at its group EV arm, Kinetic Green and various EV technology and components at its group companies, Kinetic Engineering, Kinetic Communications, among others.
Sharda Motor Industries is engaged in the manufacturing and supply of exhaust systems, catalytic converters, independent suspensions, and pressed parts. The company supplies automotive components to leading vehicle and engine manufacturers in India.
The company's consolidated net profit surged 317.90% to Rs 25.91 crore on a 154.85% rise in net sales to Rs 604.17 crore in Q4 FY21 over Q4 FY20.
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