PMI Electro Mobility Announces Ambitious Plan to Build New Plant in Pune by 2025

PMI Electro Mobility Solutions claims to be the top electric bus supplier to Tier-2 cities such as Rajkot, Surat, and Bhubaneshwar, and it also plans to quadruple its revenues from Rs 600 crore in FY23 to Rs 1,200 crore by FY25.

PMI Electro Mobility Solutions, based in Gurgaon, plans to commission its second facility, which is now under construction in Pune, to produce electric buses with a capacity of up to 3,000 units per year. With the greenfield development, which is scheduled for CY2025, the company hopes to more than double its production capacity to roughly 6,000 units per year.

The company is optimistic about the healthy demand for electric buses in the 9- and 12-metre sizes from various State Transport Undertakings (STUs) around the country, and is preparing for the future as more State governments move to EVs to cut fleet emissions.

PMI Electro Mobility Solutions claims to be the top electric bus supplier to Tier-2 cities such as Rajkot, Surat, and Bhubaneshwar, and it also plans to increase its revenues from Rs 600 crore in FY23 to Rs 1,200 crore by FY25.

While the company now has an order book of 2,500 electric buses, it plans to expand into metro cities beginning in January 2024, with the national capital as the first stop.

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The Delhi Transport Corporation (DTC) has granted PMI Electro Mobility Solutions an order of 2,000 electric buses as part of the 2021 CESL procurement, and the firm plans to begin delivery early next year to fulfil the full order in batches of roughly 150-300 vehicles each month.

"Our mission is to contribute to the greater good of sustainable and greener transportation. Our buses have clocked around 7 crore green kilometres so far, and for every kilometre an electric bus runs, there is a carbon emission reduction of around 2.4kg. While these figures help to ensure sustainability, we are also working to make public transit more affordable for the general population," says Aanchal Jain, CEO of PMI Electro Mobility Solutions.

PMI Electro Mobility Solutions will begin operating 9- and 12-metre electric buses in Delhi next year. Of the 2,000 e-buses ordered, approximately 1400 will be nine-metre-long buses, while approximately 600 will be 12-metre-long buses.

The corporation claims that its entry into Tier-1 cities comes after six years of assuring accessible and equitable public transportation for the population in Tier-2 and Tier-3 cities.

Fund-Raising Target of Rs 300 crore

As it anticipates increased demand for electric buses from STUs around the country, the company recognizes the need for more working capital to be used for product development and capacity expansion. PMI Electro Mobility Solutions is looking to raise up to Rs 300 crore in new capital to accomplish its aspirations and growth targets of doubling revenues by FY25.

The company is in the process of raising a formal fund of Rs 250-300 crore. PMI Electro Mobility Solutions intends to get this money, primarily through debt, to ensure minimal liquidation of its stake. The additional money will enable the company to strengthen its R&D capabilities.

The company is hoping to secure more orders for electric buses under the forthcoming PMe-Bus Sewa scheme, which is expected to be implemented in the next four to five months.

PMI Electro Mobility Solutions is very excited about the PMe-Bus Sewa scheme and wants to participate in the scheme when the tenders for aggregated demand from various States and cities are floated. At present, the company is now focusing on the domestic market.

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India is a substantial public mobility market, and the demand for e-buses looks steady over the next decade. The company is optimistic about the increased emphasis on sustainable transportation, as well as the government's policy push, which is driving growth in this space.