The unit signed a definitive agreement with Spiro Mobility for the same on Monday, the exchange filing said.
As per the agreement, the primary responsibility of PG Technoplast Pvt. Ltd. will be to set up and manage the manufacturing facilities for Electric Vehicle, Lithium-Ion battteries and related components and for procurement of parts and raw materials for the same, as specified by Spiro.
Spiro will be responsible for Research & Development, marketing, sale and distribution of the Electric Vehicle products manufactured by PG Technoplast.
“The company’s entry into EV and Lithium-Ion battery manufacturing opens up a new horizon of growth and with a partner like Spiro, the company is confident that this association will go a long way to become a sizeable player in the Indian EV market,” Vishal Gupta, PG Electroplast’s Managing Director of Finance was quoted as saying.
In an interaction with CNBC-TV18 last week, Vishal Gupta had mentioned that the product business will contribute ₹3,000 crore to the company’s topline in the current financial year.
The company, after its September quarter, raised its revenue and net profit guidance for the full year. During the quarter, revenue for PG Electroplast grew by 46% year-on-year, while its net profit grew by 57%.
As a result, the company increased its revenue guidance to ₹4,250 crore from ₹3,650 crore earlier and profit guidance to ₹250 crore.
Shares of PG Electroplast ended 0.8% lower on Monday at ₹623.75. The stock is still up 161% so far in 2024, despite having corrected 12% from its recent peak of ₹710.
