Gujarat-based WardWizard Innovations & Mobility aims to become a full-fledged electric vehicle maker by expanding its product offering from two- to three-wheelers, trucks, and now even the passenger vehicle segment. This it expects will translate to substantial growth in the coming years.
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In a recent interaction with Financial Express Online, Deepak Doshi, CFO, Wardwizard Innovations & Mobility shared, “Last financial year, we achieved a revenue of 240 crores in FY-23 with sales of 36,500 units. For this financial year, our target is to reach 45,000 to 50,000 two-wheelers and 3,000 to 4,000 three-wheelers in sales. We anticipate revenue figures to range between Rs 400 to 425 crores.”
“Earlier our focus was primarily on the low-speed category. Until last year, the majority of our sales were derived from the low-speed category, accounting for almost 80%, with only 20% attributed to the high-speed segment. However, this year, we anticipate a reversal in this trend, expecting approximately 65-70% of sales to come from the high-speed category, while the remaining 30% to 35% will stem from the low-speed category.”
Then there is the recent manufacturing partnership with Triton EV, for battery-operated trucks in India and the UAE. Furthermore, it will also expand its manufacturing capabilities to produce two and three-wheelers for Triton EV.
The partnership also envisions Wardwizard to get access to Triton’s technology for hydrogen battery packs used in two- and three-wheelers, coupled with technology assistance for setting up production lines and expansion in India.
They will also share vendors and suppliers to set up a smooth supply chain.
“We anticipate a substantial impact on our revenue and product portfolio due to this collaboration. Post-execution of this MoU, we estimate a four to fivefold increase in our revenue, particularly with the introduction of electric trucks,” adds Doshi.
Fund raise & investments
Unlike its traditional play, Doshi says Wardwizard is open up to new partnerships and collaborations.
He clarified that the recent announcement by the company to invest upto Rs 2,000 crore in Gujarat was including the Rs 500 crore investment committed in 2021.
The company is exploring various avenues for raising funds such as “American Depository Receipts (ADRs), equity, preferential issues, and a mix of equity and debt. Specifically, we are considering options such as rights issues, preference shares, and a combination of equity and debt to facilitate this funding.”
The vast majority of the funding will be deployed towards the ancillary cluster, inviting various manufacturers of different EV components to benefit from shared infrastructure. This collaborative setup he says aims to centralise the production of components, thus reducing transportation costs and ensuring higher quality control.
“By consolidating manufacturing processes, we anticipate cost efficiencies that will allow us to obtain materials at more competitive prices. Primarily, the manufactured components will cater to our in-house production requirements. Any surplus production will be strategically sold through our established channels, providing us full control over distribution,” explains Doshi.
The company which aims to manufacture its own cells in the future is also in the advanced stages of R&D at its subsidiary in Singapore.
“We anticipate tangible outcomes from this R&D effort within the next 18 to 24 months. If successful, we aim to commence our own cell manufacturing approximately four to six months after completing this period. Tentatively, we foresee achieving this within the next 30 to 36 months. We expect at least 10-12 percent reduction in procurement expenses when we start manufacturing the cells. Our plan is to pass on any cost reductions directly to the end-consumers,” he says.
Manufacturing and expansion
At present, Wardwizard has setup capacity to produce 120,000 electric two-wheelers per year in a single shift, with the potential to scale up to 400,000 units in three shifts. For three-wheelers, the capacity is around 4,000 to 5,000 units per month, which can be expanded up to 10,000 units.
The idea is to not only scale up manufacturing in Vadodara, but also set-up manufacturing in UAE for the African region, where it sees huge market for EVs. For this it recently inked a partnership with BEEAH Group.
“There’s a significant demand for three-wheelers in African countries, estimated at around 7 to 8 lakh units per year according to a recent study. This market holds substantial potential for us to explore,” he concludes.