Flash Electronics expects 10-15 per cent of value to come from its electric vehicles’ solution business in the next three-four years.
Pune-based auto component manufacturer Flash Electronics India has raised Rs 200 crore from private equity firm DMI Finance to expand operations.
The funds will be utilised to upgrade products for the transition to BS VI emissions standards, set up production lines and scale up its gears business, the company said. With this investment, Flash Electronics India expects to more than double turnover to Rs 2,000 crore in the next 24 months. The company reported a turnover of Rs 900 crore for 2018-19.
Sanjeev Vasudev, managing director of Flash Electronics India informed Economic Times that currently, 65-70 per cent of the company revenue comes from electronic and electrical components. However, the company has now developed a complete solution for electric vehicles including electric motors, converters and chargers. He further stated that Flash has been working on this project for the past three years in collaboration with a Swiss company.
Betting high
Vasudev said that although the market for electric vehicles is at a nascent stage in India, he expects electric vehicles to gain sizeable volumes by 2025. Flash Electronics expects 10-15 per cent of value to come from its electric vehicles’ solution business in the next three-four years.
Meanwhile, the company will invest in producing fuel injection systems for two-wheelers as required on transition to BS VI emission standards from April 2020. It will also ramp up operations in its gears business with the additional resources.
Flash Electronics India had entered the market for gears for two-wheelers and four-wheelers in 2014 and invested Rs 400 crore in setting up new plants. While the first plant was commissioned in 2016, the second became operational about two months ago.
The company supplies components to Bajaj Auto, India Yamaha Motor, Suzuki Motorcycle India and Jawa Motorcycles, among others. Globally, it has among its clients BMW, Harley-Davidson Motor Company, Ducati Motor Holding and Triumph. In October 2015, the company had acquired Germany’s Bing Power System to expand business in the country.
