Pune: Battery maker Forsee Power and Varroc Engineering are setting up a joint venture to supply battery packs for electric vehicles in India.
Varroc will buy 45% of Forsee Power India, the Indian unit of Forsee Power, and will manage and run the business. It will also put in money through optionally convertible redeemable preference shares. The deal needs regulatory and corporate approvals.
The venture will begin with batteries for three-wheelers, then move to two-wheelers, light commercial vehicles, buses, trucks, and off-highway and industrial vehicles.
“With the rapid growth of electric mobility adoption in India, the opportunity is clear and we are ready to scale. Joining forces with Varroc combines our battery technology with local industrial strength and customer access.”
Christophe Gurtner, Chairman and CEO, Forsee Power
Forsee Power’s batteries are used in more than 5,500 heavy vehicles and 150,000 light electric vehicles. The group employs 500 people across Europe, Asia and North America.
The Narrative Republic: Partners in India’s Growth
Our analysis
Forsee is handing the running of its India business to a partner that knows the market. Its technology gets Varroc’s factories and Varroc’s carmaker customers, which it could not have built quickly on its own. Three-wheelers give the venture a high volume market to prove itself in before it moves to bigger vehicles.
