| in search of an ally
New Delhi, Oct. 2 (PTI): The promoters of Bangalore-based Reva Electric Car Company (RECC) are in talks with global private equity investors to raise Rs 75 crore by offloading 15 per cent equity, its managing director Chetan Maini said.
The company is also preparing to launch its electric car Reva in the UK by January next year and also expand dealerships in the country as part of a strategy to double its sales to 6,000 cars next year, Maini said.
“Till date, our capital expenditure has been Rs 80 crore. We need more money for our future expansion which will be raised from the private equity investors. This will bring down the stake of the promoters to 85 per cent,” he said.
He identified the International Finance Corporation, the private lending arm of the World Bank, as one of the investors it was in talks with.
RECC was incorporated in 1995 as a joint venture between the Maini group and US-based AEV LLC to produce environment-friendly, cost-effective electric vehicles for city mobility.
The company’s first product, Reva — a two-door passenger car — is offered in three variants standard, AC and the high-end ‘classe’, which are priced at Rs 2.45 lakh, Rs 2.9 lakh and Rs 3.2 lakh respectively.
RECC plans to sell 1,000 cars this year and 6,000 the year-after, which, Maini said, would help the company to break even and become cash positive.
RECC has dealerships in five cities, including Delhi, Bangalore, Ahmedabad, Hyderabad and Jodhpur, which would be extended to 15 to 20 cities by the end of next fiscal, Maini said.