Endurance Tech actively engaging with OEMs for EV segment; says investment not an issue

The Union Cabinet approved a revised Rs 25,938 crore production linked incentive (PLI) scheme for auto, auto-components and drone industries to enhance the domestic manufacturing capabilities. The scheme is aimed at boosting the production of electric vehicles and hydrogen fuel vehicles.  Last year, the government had announced a scheme for the automobile and auto components sector with an outlay of Rs 57,043 crore, earmarked for five years. However, there was a bit of a disappointment this time as nothing much was done for internal combustion engine (ICE). Ramesh Gehaney, ED and COO at Endurance Technologies, spoke to CNBC-TV18 about the scheme and the company’s outlook.

He said, “This PLI scheme actually qualifies the objective of ‘Atmanirbhar Bharat’ and the ‘Make in India’ concept. So, a lot of investment will come to India, which is a positive sign, and most of it will come from the advanced technologies, also you can expect R&D advancements in India. Once that happens, then we can probably become a global hub where we can supply advanced technology products to the globe. So, I wouldn't be surprised that as technology moves upwards, more and more products start getting made in India and we become a global hub in the coming years.”

“There is eligibility cap of Rs 250 crore spread over five years, and in the first year it is Rs 40 crores. So, for Endurance, our capex plans are much higher than Rs 40-50 crores over the year. So, investment is not an issue at all at Endurance. Our capex plans are much higher than Rs 250 crores on the EV side, we spend more than 250 crores every year. So, eligibility criteria on investment part is not an area of concern at all for the company,” Gehaney specified.

On advanced technologies eligible for the PLI, he said, “I have seen the list where it talks about braking, advanced braking, electronic stability control, and these are those components or assemblies which come under the category of advanced technologies, advanced engineering technologies and even electronic suspension. So, as far as Endurance is concerned, we probably qualify for all of them. Probably most of our products are EV-agnostic, except for the clutches that we supply to the OEMs. So EV platforms are not much of a problem for Endurance.”

On orderbook, Gehaney said, “I will not give you the orderbook right now, but I can tell you that we are actively engaged with all the players, all the OEMs for the EV segment.”