Amalgamations Group to venture into EV powertrain parts with new partners, Auto News, ET Auto
As the electrification megatrend gradually grows across segments, many automotive industry players are devising strategies to tap the opportunities, mainly for sustainable growth. The Chennai-headquartered Amalgamations Group is among these players. It is learnt that the USD 2 billion Group will be adding key electric vehicle (EV) powertrain components to its portfolio.
“With the changes that are taking place, not only are we fairly significantly present in the IC engines and so on, but also the kind of approaches and efforts that we need to make towards the electric vehicle component many of the companies have taken that initiative and hopefully something would definitely be happening in the near future,” A Krishnamoorthy, Chairman, Amalgamations Group told ETAuto in a rare and exclusive interview.
“Though we are significantly present in the IC engines, with the changes that are taking place in the industry and the new initiatives by many companies, we are thinking of the kind of approaches and efforts that we need to make towards electric vehicle components. Hopefully something will definitely be happening in the near future,” A Krishnamoorthy, Chairman, Amalgamations Group, told ETAuto in a rare and exclusive interview.
IP Rings, an Amalgamations Group company, is already supplying gears and other mechanical components for EV application. Battery pack, motor and controllers are among the components that the Group is looking at manufacturing through one or more of its companies.
These would be key additions to Amalgamations’ USD 250 million components business division which has many companies. The supplier had recently showcased a 6kW electric powertrain for two and three-wheelers, and agricultural equipment applications.
The new forays are likely to happen with new partners, through technology transfer agreements or joint ventures. Some of the Group companies may also look to expand their businesses as part of the “logical expansion” that almost all companies strive for in the new age.
“And that’s what is happening with the different companies in the Group. We have a few companies that are not only in engineering but also in non-engineering like plantations. For them also the scene is changing and I think we have to necessarily respond to all of those changes. Hopefully we will continue to be as successful as we have been so far,” the octogenarian industry veteran said after inaugurating the first plant of a joint venture between the Group Company India Pistons, and the Florida-based Shaw Development.
The JV plant in Hosur, Tamil Nadu, also marks Shaw Development’s first plant outside the US. Leveraging India’s frugal engineering and manufacturing base, the American partner plans to source significantly from here. The initial installed annual manufacturing capacity of 240,000 units of a DEF (Diesel Exhaust Fluid) system is planned to be ramped up to a million units within a couple of years.
Last year IP Rings signed a JV with the UK-based Eminox for the design and development of cost efficient exhaust after-treatment systems. These systems are required to meet the BSVI Stage 2, and Indian TREM V off-highway emission regulations.
Along with the planned new moves in the EV component space, it won’t be surprising if the Amalgamations Group also enters the electric farm equipment space even as a manufacturer. Its flagship TAFE is among the leading tractor OEMs in India.
“This is something that I’m not in a position to say immediately, but I think it would be right to say that every aspect of assuring the future not only for the product, but also for the benefit of the customers is certainly there and TAFE is no exception,” Krishnamoorthy said.
In the components business sector, Amalgamations will look at plugging in to the growth prospects of EV parts and systems in India. According to a CRISIL Research Study, EV components could have a 9-11% share in the domestic component industry’s turnover by FY27, from only a percent currently. Last financial year, the EV component business is estimated to have clocked a turnover of INR 4,300 crore, and that figure is expected to grow at a CAGR of around 76% to touch INR 72,500 crore in the next 5 years.