Salzer forays into EV Business through JV with Austrian Company to manufacture DC FAST Chargers for E Vehicles

Salzer Electronics Limited (BSE: 517059, NSE: SALZERELEC), among leading players offering total and customised electrical solutions, has announced its joint venture with Kostad Steuerungsbau GmbH to manufacture DC Fast charging stations for electric vehicles (EV).

Salzer will form a joint venture company named Salzer Kostad EV Chargers Pvt Ltd, with Austria-based company Kostad Steuerungsbau GmbH (Kostad). The JV will engage in the manufacturing of DC Fast charging stations for electrical Cars, Trucks & Buses, and components and systems thereof, in India.

Through this technical alliance, Kostad would provide technical know-how and requisite technology support to Salzer for the production of EV charging stations and related components.

The global industry for EVs has been on the rise in the recent past. Stringent emission norms and environmental concerns are expediting the adoption of EVs in various nations. The Government of India is also propagating the awareness and adoption of EVs and this is likely to open up huge opportunities for the company.

Salzer and Kostad would hold 26% and 16% equity in this JV respectively, E-March LLP - a Technology company with abundant resource and knowledge in Power electronics will hold 6%, while the rest would be held by private investors. The total investment in this venture would be Rs. 18 crores, 26% of which will be borne by Salzer over a period of 12 months.

Commenting on this development, Mr. R. Doraiswamy, Managing Director, Salzer Electronics Ltd said: "I am very happy and pleased to share the news that we are forming a joint venture company with an Austria-based specialist firm, Kostad Steuerungsbau GmbH.

Through this JV, Salzer Kostad EV Chargers Pvt Ltd, we would bring DC Fast Charging stations for E Vehicles to the Indian market. Our manufacturing capabilities would be well complemented by the technical know-how from the Kostad team, to deliver international standard DC Fast chargers for E Vehicles and components for EVs in India. We will also be supplying to the south east Asian markets and Middle east apart from India. However India will be our key and most important target to begin with.

Rising environmental concerns are leading to new and more stringent emission norms worldwide, including in India. This is also prompting various governments to encourage the development and adoption of EVs on a mass scale. While many developed nations already have a proper infrastructure in place, it is still in a nascent stage in most countries. The Indian Government too, has expressed plans to increase the share of EVs on the roads in the coming decade.

This is a huge opportunity for us, and the partnership comes at an opportune time, such that we can prepare and be ready for the anticipated demand in the coming years and capitalize on it. In line with our ethos, we continue to build on our technological capabilities while staying abreast with new trends and opportunities in the industry."

Shares of SALZER ELECTRONICS LTD. was last trading in BSE at Rs.165.55 as compared to the previous close of Rs. 162.5. The total number of shares traded during the day was 31729 in over 983 trades.

The stock hit an intraday high of Rs. 168.25 and intraday low of 163.3. The net turnover during the day was Rs. 5265336.

Source : Equity Bulls

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