PMI Electro Mobility Solutions Pvt Ltd, an electric bus maker, stated on Wednesday that it had secured Rs 250 crore from Piramal Alternatives, the Piramal Group’s fund-management arm, to support its green mobility projects.

PMI Electro Mobility Solutions (PMI) is India’s leading maker of electric buses. PMI was placed 17th out of 123 competitors on August 31, 2023, with a Tracxn Score of 32/100. 

The yearly production capacity of PMI is 1,500 units, which may be expanded to 2,500 to 3,000 units on multiple shifts. PMI said that by December 2022, it will have 900 electric buses running on Indian highways.

From 2023 to 2030, the worldwide electric bus market is predicted to develop at a compound annual growth rate (CAGR) of 20.4%. The market is seeing a surge in demand for low-emission, fuel-efficient buses.

Piramal Alternatives made the investment via its Performing Credit Fund (PCF), a sector-agnostic vehicle that serves the financial requirements of mid-market enterprises. Convertible securities were used to make the investment. PMI Electro Mobility’s funding was advised by ICICI Securities.

According to the firm, the cash will be used to create novel solutions, introduce technical upgrades to its manufacturing capabilities, and grow its operations.

According to Aanchal Jain, CEO of PMI Electro Mobility, there has been an increase in demand for electric buses as a result of India’s net-zero emissions objective and the newly launched PM eBus Sewa plan.

PMI Electro Mobility, founded in 2017, has produced 1,200 buses that now run in New Delhi, Uttar Pradesh, Himachal Pradesh, Goa, Maharashtra, West Bengal, Odisha, Gujarat, Kerala, and Ladakh.

“With an order book of 2,500 buses that is expected to grow, the investment from Piramal Alternatives will greatly enhance our technological capabilities and our growth trajectory,” Jain added.

Piramal Alternatives presently manages a total of $1.5 billion in assets. It has lately invested in Indian firms such as specialty chemicals firm Harmony Organics, precision engineering firm Azad Engineering, and hotel firm Impresario Entertainment.

“The use of electric buses for transport, though nascent now, is poised for rapid growth in the coming time. We will keep looking at potential opportunities for investments in the EV space, particularly those that create a long-term positive impact while keeping in mind environment, social and governance considerations,” said Kalpesh Kikani, chief executive officer of Piramal Alternatives.