Hero Motocorp said that its board has approved an investment of up to Rs 420 crore in one or more tranches, in Ather Energy.
Ather, an existing associate company of Hero MotoCorp, is engaged in the business of designing, manufacturing, producing, selling, servicing, software development, and software management, in relation to electric automobiles and charging infrastructure; and storage, distribution, and management systems, or otherwise all forms of electric power (including energy in the form of batteries) and other ancillary services. It has a wide presence across the country. Ather's turnover for the year ended March 2021 was Rs 79.8 crore.
Prior to the proposed investment, Hero MotoCorp's shareholding in Ather Energy was 34.8% (on a fully diluted basis). Post the investment, the shareholding will increase and the exact shareholding will be determined upon completion of capital raise round by Ather.
Hero MotoCorp is an early investor in Ather Energy and has been a part of its growth story since 2016. The company is also exploring collaborations with Ather Energy in various spheres, such as charging infrastructure, technology and sourcing.
Through its investments and partnerships with external partners like Ather Energy and Gogoro Inc., Hero MotoCorp is also working towards building the entire EV ecosystem - from products to technology, to sales, service, customer care, operations, and innovation.
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Swadesh Srivastava, head - emerging mobility business unit, Hero MotoCorp, said, In keeping with our vision 'Be the Future of Mobility', we are working on a variety of emerging mobility solutions. We were one of the early investors in Ather Energy and have continued to expand our association over the years. We are excited to see the growth of Ather Energy in recent years. Our aim is to expand the Hero MotoCorp brand promise and make EV ownership a convenient, hassle-free, and rewarding experience for customers across the world.
Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters, in terms of unit volumes sold by a single company in one year, the coveted position it has held for the past 20 consecutive years. The company has sold more than 100 million motorcycles and scooters in cumulative sales since its inception.
On a consolidated basis, Hero MotoCorp's net profit dropped 22.4% to Rs 747.79 crore on a 9.9% decline in net sales to Rs 8,538.85 crore in Q2 September 2021 over Q2 September 2020.
The scrip shed 0.85% to end at Rs 2570.55 on the BSE on Friday.
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