Mahindra & Mahindra (M&M), the country’s largest maker of sport utility vehicles (SUV), is looking to buy a strategic stake from private equity players Global Environment Fund and Draper Fisher Jurvetson in the Bangalore-based electric carmaker, Reva Electric Car Company (RECC).
RECC, a joint venture between Maini Group and California-based AEV LLC, sells electric cars in over 24 countries, including India. Since its launch in 2001, the company has sold over 3,500 cars, including 1,000 in India.
According to media reports, M&M is looking to buy out the stake held by private equity players in RECC. M&M is holding a press meet here tomorrow.
An M&M spokesperson refused to comment on tomorrow’s announcement. M&M stocks closed 2.48 per cent down at Rs 516.15 per cent on the Bombay Stock Exchange today.
In 2006, Reva had raised $20 million from Global Environment Fund and Draper Fisher Jurvetson. These investors are nearing a strategic sale of their stakes in RECC, believed to be valued around $100 million (Rs 457 crore).
Despite repeated attempts, Chetan Maini, managing director of RECC, did not respond to telephone calls.
RECC is setting up its second electric car manufacturing facility in Bangalore at an investment of Rs 30 crore.
The plant, with an annual capacity of 30,000 units, would be operational next year.
Last year, Reva entered into a technology tie-up with General Motors. The agreement includes marketing of Reva cars through the outlets of General Motors.
The nascent electric car market in India is likely to hot up later this year, when General Motors launches its first electric car, eSpark. Tata Motors is also developing an electric car.
