Servotech Sets up Subsidiary for EV Charging Components Manufacturing

Servotech Adds Orders for 2649 EV Chargers from BPCL

EV charger maker Servotech Power Systems has announced that it will be setting up a wholly-owned subsidiary, which will engage in the manufacture of EV charging components, manufacturing and trading of batteries. The subsidiary will be named Techbec Green Energy Private Limited.

The new firm will be established in Sonipat on an area of 40,000 sq feet. Servotech Power Systems will have a stake of 99.99% in the subsidiary.

The firm tells us that there is a shortage of components, such as CCS2 guns, Type 2 guns, connectors, PLC modules, control cards, Lithium-Ion batteries etc, required to make EV chargers. India has been widely importing to fulfill these needs. The subsidiary will look at the manufacture of these components.

Servotech along with its subsidiary envisages an initial investment of ₹30 Crores, which will be utilized to procure testing equipment, manpower, machinery, and cutting-edge technology and support other allied activities. Further, the company along with the subsidiary plans to invest ₹300 Crores additionally by March 2025 with an aim to achieve a prominent operational scale. Further to streamline the corporate structure, Servotech divested its stake of 63.5% in its subsidiary Techbec Global Solutions Pvt. Ltd.

Commenting on the announcement, the Founder and MD of Servotech, Raman Bhatia, stated “We are pleased to announce the establishment of our new subsidiary Techbec Green Energy Pvt. Ltd. Servotech together with its subsidiary, is set to embark on an initial investment of ₹30 Crores. This capital will be allocated towards acquiring testing equipment, hiring skilled manpower, obtaining advanced machinery and technology, and supporting other related activities. Furthermore, the company and its subsidiary intend to further invest ₹300 Crores by March 2025, aiming to attain a significant operational scale in the entire EV charging ecosystem. This capital infusion will serve to significantly bolster the company’s and its subsidiary’s capabilities, unlocking its true potential for success.

Servotech had recently shared that its consolidated net profit stood at INR 4.10 crore in the June quarter, with a net profit of INR 35 lakh in the corresponding period in 2022. The firm also reported a total revenue which more than doubled to INR 79.81 crore from INR 32.06 crore in the corresponding quarter last year.

Servotech recently announced a partnership with Dubai’s Al Ansari Motors LLC, a firm in motor vehicles and accessories trading. Under the partnership, Servotech will offer EV charging solutions to Middle Eastern and African markets. The charging solutions will include AC and DC EV chargers. The initiative is said to enable the firm to increase its global footprint.