Greenfuel Energy Solutions, a manufacturer of CNG kits, is looking at tapping into the country’s drive towards electric vehicles to more than treble revenue over the next three years.
The company, which sells CNG kits to Maruti Suzuki, Tata Motors, Volvo-Eicher and Ashok Leyland, has set up a lithium-ion battery pack manufacturing plant in Manesar, Haryana.
Greenfuel plans to increase investments in the facility to increase capacity for li-ion batteries for three-wheelers and two-wheelers, sales of which it expects to grow manifold by 2023. The company declined to disclose the investments planned over the next 2-3 years.
“Electric mobility in India will gain acceptance in three-wheelers, then two-wheelers and cars,” Greenfuel managing director Akshay Kashyap said. “In the electric three-wheeler segment, used for last-mile logistics, running costs are already economical. The business viability should translate into heavy adoption of e-mobility in the segment in future.”
Greenfuel expects revenue of Rs 150 crore from its electric vehicle battery pack-making venture in the next three years and Rs 150-200 crore from its CNG kit business.
“The government has already granted licences to set up CNG stations in 120 districts,” Kashyap said. “There are around 1,970 CNG stations in the country currently. An additional 5,500 stations are set to come up by 2025. The potential for growth is immense.”
In the current financial year, while sales of petrol and diesel vehicles are expected to decline, market leader Maruti Suzuki expects sales of CNG vehicles to increase 36% to 144,000 units on the back of lower operating costs and wider availability of the fuel in the country.
Greenfuel expects better sales in the second half of the financial year. However, revenue for the year is likely to decline on account of the Covid-19-induced lockdown, Kashyap said.
“We had recorded peak revenue of Rs 85 crore in FY19. Last year, auto sales declined by 18%, our revenues fell 10%. This year, there was a hit because of the outbreak of the pandemic and the subsequent lockdown. Hopefully, things will improve going ahead,” said Kashyap.