In Aurangabad, Maharashtra, Ather Energy expands with a new Rs 1,000 crore plant to increase manufacture of electric vehicles on 100 acres.
The Bengaluru-based electric two-wheeler startup Ather Energy is expanding its production capacity by building a new manufacturing plant in the Bidkin town of Aurangabad.
It is anticipated that a deal for this expansion would be finalized shortly, according to sources. Nonetheless, the complex, which will be built over 100 acres in phases, will cost Rs 1,000 crore according to the company’s projections.
Ather Energy is renowned for its emphasis on software development, infrastructure management, and the design, manufacture, and sale of electric vehicles. The company intends to expand to Aurangabad and currently runs assembly and battery operations in Hosur, Tamil Nadu.
Hero MotoCorp has acquired an additional 2.2% of Ather Energy for a total of Rs 124 crore, increasing its holding in the company. This action is a calculated prelude to Ather’s planned early-2019 initial public offering (IPO). According to Bloomberg News, Ather Energy hopes to raise $400 million for its IPO, which could value the company at about $2 billion.
Ather Energy, which now holds a 13–15% market share in India for electric two-wheelers, is planning to expand internationally, focusing on Southeast Asia, Latin America, and Europe. In the upcoming months, the company will make the announcement of its first foreign market launch.
In terms of finances, Ather had a considerable rise in revenue, going from ₹408 crore in FY22 to ₹1,783 crore in FY23. However, the company also recorded a wider loss, of ₹864.5 crore, as opposed to ₹344.1 crore in the prior fiscal year. Despite these numbers, Ather is still growing because to recent ₹900 crore investments from Hero MotoCorp and GIC.
By the conclusion of current fiscal year, Ather Energy hopes to grow from 100 cities and 150 experience centers to possibly 130–150 cities and 180 experience centers through the expansion of its retail network and charging infrastructure.
With its planned IPO and planned strategic expansions, Ather Energy is well-positioned to see significant growth as the market for electric vehicles expands both domestically and internationally.
