Chennai-based manufacturer of closed die hot forgings, MM Forgings (MMF) has recently acquired a startup to produce EV powertrain components.
MMF has made an investment to secure an 88% equity shareholding in Abhinava Rizel on a fully diluted basis for a cash consideration.
It will invest `200 crore to provide financing for a manufacturing facility and other product development initiatives.
Abhinava Rizel founders BVN Madhu, Karthik Donthula and Shivam Bhatia have been developing EV motor and powertrain technologies since 2017. The firm has eight filed patents and 10 in the filing process.
The investment from MMF will be utilised to set up an initial manufacturing facility at Oragadam in Tamil Nadu.
Vidyashankar Krishnan, vice-chairman & managing director of MMF, said, “MMF is the supplier of choice for leading global automotive companies across the spectrum of vehicle configurations, especially in the passenger and commercial transportation automotive segments … Given the growing presence of EVs across the overall automotive market, MMF is seeking attractive investment and partnering opportunities to pivot itself and become a significant industry participant in this emerging sector.”
He said the market for EV powertrains in India is expected to gradually grow to Rs 1 trillion over the medium term. MMF expects Abhinava Rizel to acquire a reasonably attractive share of the marketplace.
MMF had clocked of revenue of Rs 1,088 crore in FY22.
BVN Madhu, co-founder, Abhinava Rizel, said, “The current scenario is an opportunity for India to play a bigger role in the global EV transition. We believe in making India known for great engineering and technology by providing leading-edge EV powertrain solutions across the world. Together, we intend to have the spirit, speed and agility of a startup with the reliability and pedigree which comes with MMF’s 75 years of auto-component manufacturing to deliver optimum powertrain solutions to the global EV space.”