Online BusinessKabirdass Motor plans to raise Rs 60 cr via IPO
Chennai-based electric scooter manufacturer Kabirdass Motor Company is planning to raise Rs 60 crore through an initial public offering to support its expansion plan and for setting up a manufacturing facility near here.
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This apart, it is planning to borrow Rs 20 crore through term loan from Union Bank of India and another Rs 20 crore through equity, said Murali Kabirdass, managing director, Kabirdass Motor Company Pvt Ltd.
Speaking to Business Standard, he said the greenfield project would come up on nine acres with an investment of around Rs 70 crore. Construction work on the project would commence in September and the production would begin from April 2010.
The company, which commenced manufacturing in 2006, has a facility at Poonamalle in Chennai with a capacity to manufacture 1,800 electric scooters per annum.
It has set a target to produce 15,000 units from the new plant in the first year. “We are also planning to manufacture batteries for electronic scooters along with a foreign partner once we reach the 100,000 capacity,” he added.
The company would also focus more on R&D. For this, it would invest Rs 5 crore in R&D annually and also join hands with a foreign player.
It is also planning to enter African and Asian countries apart from Europe after a couple of years.
“We have set a target to sell 1,000-1,500 vehicles in 2009-10. Over the last two years the company sold 2,000 vehicles,” he said. In 2008-09 the company clocked a turnover of Rs 2.60 crore up from Rs 2.49 crore in 2007-08, up 4.42 per cent.