The CEO of PMI Electro Mobility Solutions, Aanchal Jain, has revealed plans by the electric bus manufacturer to raise approximately Rs 250 crore to partially finance the expansion of its production capacity and fulfil working capital needs. PMI is in the process of establishing a new manufacturing unit in Pune, with an estimated investment of around Rs 150 crore allocated for this expansion initiative.
PMI Electro Mobility Solutions (PMI) is currently equipped with an annual manufacturing capacity of 1,500 units at its facility in Dharuhera, Haryana. This capacity can be increased to 2,500 to 3,000 units through the introduction of multiple shifts.
Jain explained that a new construction project in Pune is underway, which is expected to add an additional 3,000 units of manufacturing capacity annually. This facility is a joint venture between PMI and China’s BeiqiFoton Motors, with whom PMI has established a technical partnership.
When questioned about the financial investment required for the new plant, Jain did not provide a specific figure but estimated that it would be approximately Rs 150 crore from PMI’s side. The land for the new facility is owned by BeiqiFoton, and PMI is investing in the setup of the manufacturing unit.
Regarding funding, Jain expressed the need to secure funds to support expansion plans. PMI is currently pursuing a fundraise of approximately Rs 250 crore. Jain emphasized the importance of being cautious and strategic about raising funds and mentioned the possibility of future rounds of fundraising as needed. The funds raised will be allocated towards expanding production capacity and fulfilling working capital requirements, according to Jain.
The doubling of manufacturing capacity is anticipated to be completed by the end of the following year or early 2025. PMI is actively preparing to meet its delivery commitments, with a current order book comprising 2,500 units that need to be delivered over the next two to three years. The company already has 1,200 electric buses operating across 27 cities in India.
Furthermore, Jain highlighted that out of the total pending orders, approximately 2,000 units are related to a contract awarded by the Delhi government. This contract represents a significant entry for PMI into a metropolitan city.
PMI’s electric buses are currently in operation in various locations, including Leh, Ladakh, Shimla, Rajkot, Surat, Kerala, Himachal Pradesh, Bhubaneswar, and Uttar Pradesh, with the latter being the largest market.
With experience in running electric buses in smaller cities, Jain expressed enthusiasm for the “PM-eBus Sewa” scheme. Under this initiative, 10,000 electric buses will be provided to 169 cities through a public-private partnership (PPP) model. Jain believes that this scheme will greatly benefit the entire industry, and PMI is committed to contributing to its success.
Jain further emphasized that as more contracts become available, PMI intends to participate and secure them efficiently. These contracts are spread out over time, allowing the company to align production capacity with demand.