Omega Seiki Mobility plans to invest Rs 800 crore to set up two manufacturing plants for batteries powertrains

• ByStartupStory     |    January 30, 2023

According to Omega Seiki Mobility‘s founder and Chairman Uday Narang, the company expects to invest Rs 800 crore in the next two years to establish two new facilities to manufacture batteries and powertrains. 

The Anglian Omega Group company has created a joint venture with iM3NY, a battery technology player based in the United States, to introduce the latter’s cell technology to the Indian market and produce it locally.

In its effort to become a completely integrated electric vehicle (EV) OEM, it would also build six electric vehicle powertrains with power capabilities ranging from 7 KW to 34 KW based on South Korean joint venture partner Jae Sung’s technology. 

In an interview with PTI, Narang stated that these technologies would provide Omega Seiki Mobility (OSM) with control over important elements of the supply chain, allowing it to become a large-scale participant in the market.

When asked about investments, he said, “We will invest Rs 800 crore over the next two years in setting up the two plants…We are going to set up the powertrain facility in Haryana…and the battery factory will be in Maharashtra”.

On the battery factory, he said, “In phase one, we will primarily get cells from China and do battery packs. In the second phase, we will build a cell manufacturing facility. The first phase will start in June 2023, and then the next phase will be in 2024-25”.

In terms of capacity, Narang stated that the company is eventually planning a “giga factory,” but that it will begin with half of that. 

In terms of the powertrain plant, he stated that the company plans to produce 10,000 units this year and 1 lakh units in the fourth year.

 When asked about the funding of the investment, he said, “We will fund partly and we are also in the middle of a major fundraise of USD 100 million…but we will put money in and that will be done over the next two years. We believe that the fundraising we are discussing with various partners will close shortly”.

Concerning the shareholding of the JV with iM3NY, he stated that OSM would be the primary partner with a 74% stake, with the remaining 24% with the US-based partner, as is the case with the JV with Jae Sung. 

OSM, which mostly manufactures electric three and four-wheeler cargo vehicles, plans to conclude this fiscal year with sales of 6,000 units, with a goal of increasing to 20,000 units the next year, according to Narang.

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