Latest news with #Olectra
The Hindu
3 days ago
- Business
- The Hindu
TGSRTC withdraws order for 40 electric buses issued to Megha entity
The Telangana State Road Transport Corporation (TGSRTC) has withdrawn an order for 40 electric buses issued to MEIL subsidiary, EVEY Trans. The 40 electric buses were part of the order for 50 such for inter-city operations the State Transport Corporation had placed with EVEY in April 2023. The TGSRTC has reduced the order to 10 buses which have already been delivered. In respect of the balance 40, the order has been withdrawn, another MEIL entity Olectra Greentech informed stock exchanges on Saturday. As per the tender conditions, EVEY was executing the contract with TGSRTC through a special purpose vehicle company EVEY Trans in which electric bus maker Olectra had 26% stake and EVEY the remaining 74%. Under the contractual terms, the buses were required to be procured from Olectra and who additionally was responsible for their maintenance. The order for supply of 50 electric buses was to be on gross cost contract (GCC) / OPEX model basis for the contract period of 10 years. Olectra did not specify reasons for which the order for the remaining 40 buses was withdrawn by the State Transport Corporation. The TGSRTC had in April 2023 also placed order for 500 electric buses for intra-city operations, along with the 50 buses for intercity operations, it said. Except for reduction in existing order book by 40 buses, there is no material adverse impact since it is having huge order book for electric buses, Olectra said in the filing.
Time of India
5 days ago
- Automotive
- Time of India
India's ambitious e-bus drive faces component supply constraints, financing hurdles
HighlightsMaharashtra may cancel ₹10,000 crore e-bus order with Olectra due to major delivery delays. E-bus makers face supply shortages for key parts from China and the US. No rival suppliers are ready to fulfil large state orders on short notice. OEMs like Switch are boosting localisation and scaling production to tackle supply issues. India wants to quickly transition to green public transportation and has set itself an ambitious target of deploying 50,000 e-buses by 2027. An overwhelming procurement of 90% of these e-buses is to be done by various state governments instead of private operators. But supply chain issues, specifically for components coming from China, continue to be a roadblock in this ambitious plan. There are other challenges too, including access to financing and infrastructure readiness. Earlier this week, news reports suggested that the Maharashtra government has decided to cancel a large order for supply of e-buses due to inordinate delays in supplies. State transport minister Pratap Sarnaik said as much on X, though he did not name the supplier. The contract was signed between the state government and a Special Purpose Vehicle (SPV) , which comprises Olectra Greentech and another group company, and it was inked for supply of 5,150 electric buses to the state government in 2023. Reports suggest that less than 250 buses have been delivered till date and the contract had been revised once earlier, with the supply timelines eased. So what went wrong? Supply challenges for chassis and battery components have been severely affecting the manufacturing of electric buses, not just for the Olectra SPV but for much of the e-bus ecosystem in India. Another industry player said he was negotiating with a European company for a partnership to enter the 9 metre electric bus segment in India, while pointing out the continued supply challenges for battery and chassis components besides magnets. 'Everybody is getting affected, all major electric bus OEMs are getting affected. China and the USA - major suppliers of some of the components - have been flexing their muscles but I believe eventually, things will get sorted out,' this person said. We have navigated supply chain challenges through robust planning and favorable geopolitical developments. We rely on trusted partners for important EV components, battery, motors, and power electronics. We closely work and collaborate with partners to manage the Babu Mahesh Babu, CEO Switch Mobility , another electric bus manufacturer with an order book of 2921 units last fiscal (of which 982 had been delivered), said his company has been investing in local battery assembly and in strengthening logistics partnerships to increase localisation and reduce supply chain vagaries. 'We have navigated supply chain challenges through robust planning and favorable geopolitical developments. We rely on trusted partners for important EV components, battery, motors, and power electronics. We closely work and collaborate with partners to manage the challenges. We are also investing in local battery assembly, pursuing long-term contracts with suppliers and strengthening logistics partnerships, with over 65% localization in manufacturing and plans to increase this to 90% aligning with the 'Make in India' vision.' Also read: Karnataka to receive 4,500 electric buses under PM e-Drive scheme Over 90% of e-bus procurement is currently driven by state governments and public transport corporations (STUs), supported by central schemes like FAME-II and new initiatives under PM e-Bus Sewa and PM e-Drive . State governments have no option But even as different e-bus makers are trying to innovate and also address the supply constraints by developing a local vendor base, there really appears to be little the state governments can do to get the e-bus orders in time! While Olectra says it is yet to receive any intimation about the cancellation of the MSRTC order, in a subsequent discussion with analysts, the company's CFO B Sharatchandra did not seem perturbed by the impending cancellation. When asked whether it was fair to assume that if MSRTC were to cancel the order, there were no competing suppliers who could step up and fulfil the order in the timeline decided, he said 'I think you are right. Yes, you can assume. So, obviously, everybody has got capacity constraints and our product, as you rightly said, has got an edge in terms of technology and in terms of performance over the competition. So, we hope, as Hanuman (company secretary) has clarified to earlier queries, we are optimistic that there will not be any negative impact on account of this'. In other words, Olectra SPV's loss is unlikely to be a competitor's gain. The Olectra officials also admitted that delays in procuring powertrain components relating to battery and some of the components relating to chassis have hampered production of e-buses but again alluded to the delays in deliveries of e-buses by the entire industry to drive home the point that supply chain limitations are universal. The MSRTC order was labelled as one the world's largest e-bus procurements and was worth Rs 10,000 crore. The initial agreement for e-bus supply was later amended to reduce the number of buses to be supplied, due to inability of the SPV to meet the targets. At present the contract execution is under process and as per the clarification provided by EVEY they haven't received any such order as of Greentech consortium A consortium of Olectra Greentech Limited and EVEY Trans Private Limited was awarded this contract by the MSRTC for 5,150 Electric Buses and allied Electrical and Civil Infrastructures on Gross Cost Contract (GCC) basis. And that EVEY Trans is executing this contract with MSRTC through the SPV. 'At present the contract execution is under process and as per the clarification provided by EVEY they haven't received any such order as of now.' Meanwhile, in answer to another question, the Olectra CFO admitted that the company's total backlog was 'quite severe. We have orders of, I think more than 4,500 (e-buses)...pending and another 5,000 with MSRT, which we have to deliver in the next, I believe 18 months'. The company plans to ramp up production by deploying robotics in Q4 of FY26. Also read: Electric two wheeler sales cross a million units in FY25 but growth is slowing down Switch to double volumes Babu of Switch mobility said that the company's goal was to double volumes and revenue annually over the next three years, supported by a robust order pipeline exceeding 1,800 electric vehicles, including international orders such as from Mauritius. 'We are scaling up production and expanding our service network with 18 exclusive bus service outlets and 50+ dealer points across India.' Beyond battery and motor supplies, Babu listed out some other challenges being faced by the electric bus OEMs: Charging Infrastructure, customization complexity alongside diverse city requirements, shortage of skilled workforce, and access to financing and infrastructure readiness, especially in tier 2 and 3 cities.
Time of India
27-05-2025
- Automotive
- Time of India
Olectra Green debunks reports of ₹10,000 crore e-bus order cancellation
Olectra Greentech Ltd on Tuesday said it has not received any official cancellation order for its electric bus contract in Maharashtra , countering earlier media reports that the ₹10,000 crore deal had been scrapped over procedural lapses. 'The contract execution is under process. Haven't received any cancellation order as reported in the media,' the company said. Despite the clarification, shares of Olectra slid as much as 13% during intraday trading after Maharashtra Transport Minister Pratap Sarnaik posted on X that a tender for electric buses in Bhandetali had been cancelled due to 'serious discrepancies.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sàn cao su chất lượng sắp được tặng ở Thôn Phật Chỉ Gạch | Quảng cáo tìm kiếm Tìm Ngay Undo — PratapSarnaik (@PratapSarnaik) 'The decision has been taken to cancel the tender awarded to the company operating 150 electric buses in Bhandetali due to serious discrepancies. A fresh tender will be issued soon,' Sarnaik wrote. He did not name the company, but investor sentiment pointed to Olectra Greentech as the affected party. Live Events Olectra, along with its consortium partner Evey Trans Private Limited (EVEY), had received a Letter of Intent (LOI) from the Maharashtra State Road Transport Corporation (MSRTC) earlier this year to supply, operate, and maintain 5,150 electric buses under a Gross Cost Contract model. The contract, estimated at ₹10,000 crore, also included related electrical and civil infrastructure. Also Read: Maruti commences high voltage training program at 130 ITIs to accelerate EV adoption Shares of the company ended the day at ₹1,255.90, down ₹89.60 or 6.65% from the previous close. As per the LOI, EVEY was expected to procure the buses from Olectra, with deliveries scheduled over 24 months. Olectra was also tasked with long-term maintenance of the fleet. Over the past one year, the stock has declined by 30.21%. On a year-to-date (YTD) basis, it is down 15.06%, while the six-month return shows a drop of 19.67%. In contrast, the stock has gained 12.16% over the last three months and 4.60% in the past one month, indicating a short-term recovery amid long-term weakness.
India Today
27-05-2025
- Business
- India Today
Olectra Greentech shares tumble nearly 7% in early trade. Here's why
Olectra Greentech shares dropped sharply on Tuesday morning after Maharashtra's Transport Minister Pratap Baburao Sarnaik publicly called for the cancellation of a major electric bus tender, citing the company's failure to meet revised delivery 9:18 AM, Olectra's stock was down 6.37% at Rs 1,259.60 on the BSE. The fall followed the minister's post on X (formerly Twitter), where he claimed that not a single bus had been delivered under a revised schedule that required 1,000 buses to be supplied by May 22. 'Therefore, it was decided that the tender agreement with the company should be cancelled,' he Rs 10,000 crore contract in question was awarded in July 2023 to a consortium of Olectra and Evey Trans Private Ltd by the Maharashtra State Road Transport Corporation (MSRTC). It involved the supply, operation, and maintenance of 5,150 electric buses over 24 months under a gross cost contract. Olectra was to manufacture and supply the buses and handle maintenance throughout the period. In its FY24 annual report, Olectra hailed this as the world's largest electric bus order and noted an order book of 10,969 units as of March 31, 2024. The company was also eyeing further expansion with fresh government the controversy, Olectra posted strong Q4 earnings on Monday. Net profit rose 39% year-on-year to Rs 20.69 crore, while revenue climbed 55% to Rs 448.92 company also recommended a final dividend of Rs 0.40 per share for FY25, subject to shareholder the political intervention and concerns over delivery commitments have raised fresh doubts among investors. The stock, which has delivered over 2,250% returns in the last five years, has lost about a quarter of its value over the past year.
News18
27-05-2025
- Business
- News18
Olectra Greentech Shares Tank 14% After Maharashtra Government Cancels Major E-Bus Order
Last Updated: Olectra Greentech Shares: Shares of Olectra Greentech Ltd fell as much as 14% to an intraday low of Rs 1,160 in Tuesday morning trade Representative Picture Olectra Greentech Share Price: Shares of Olectra Greentech Ltd fell as much as 14 per cent to an intraday low of Rs 1,160 in Tuesday morning trade, May 27, following Maharashtra Transport Minister Pratap Sarnaik's call to cancel the company's electric bus order over missed delivery deadlines. In a post on social media platform X, Sarnaik stated that the company had failed to deliver a single bus out of the 1,000 units scheduled for handover by May 22. While he did not mention Olectra Greentech by name, Sarnaik said officials were instructed to cancel the tender for 5,150 buses due to the supplier's lack of action, casting doubt on the project's viability. The order, awarded in July 2023 to a consortium of Olectra and Evey Trans Pvt Ltd, is valued at nearly Rs 10,000 crore over a 12-year contract. Under the agreement, Evey was responsible for procuring buses from Olectra and supplying them to the Maharashtra State Road Transport Corporation (MSRTC) over 24 months, while Olectra would handle fleet maintenance. The minister's comments followed a review meeting on Monday evening at the MSRTC headquarters, where he noted the company had made no progress despite being given a revised delivery timeline. Olectra Greentech has yet to issue an official response regarding the potential cancellation. This development comes shortly after the company reported strong Q4 financial results. Olectra's revenue grew 58 percent year-on-year, net profit doubled, EBITDA increased 70 per cent, and margins improved by 100 basis points. The company plans to hold an analyst call on Wednesday, May 28, at 4:30 PM to discuss the results. At around 9:30 am, Olectra shares traded at Rs 1,266, down 6 per cent from the previous close. Despite a 13 per cent gain over the past month, the stock is still down 9.2 per cent year-to-date. First Published: May 27, 2025, 11:17 IST
