Home > Business > PTI > Report

Reva to sell 15% pie for Rs 75 cr

October 02, 2003 16:09 IST

The promoters of Bangalore-based Reva Electric Car Company are in talks with global private equity investors to raise Rs 75 crore (Rs 750 million) by offloading 15 per cent equity, its managing director Chetan Maini said.

Also Read


Reva plans electric mini-buses, taxis


The company is also preparing to launch its electric car 'Reva' in the United Kingdom by January 2004 and also expand dealerships in the country as part of a strategy to double its sales to 6,000 cars next year, Maini told PTI in New Delhi.

"Till date, our capital expenditure has been Rs 80 crore (Rs 800 million). We need more money for our future expansion, which will be raised from the private equity investors. This will bring down the stake of the promoters to 85 per cent," he said.

He identified the International Finance Corporation, the private lending arm of the World Bank, as one of the investors it was in talks with.

The RECC was incorporated in 1995 as a joint venture between the Maini group and US-based AEV LLC to produce environment-friendly, cost-effective electric vehicles for city mobility.

The company's first product, REVA - a two-door passenger car is offered in three variants 'Standard', 'A/C' and the high-end 'Classe', which are priced at Rs 245,000, Rs 290,000 and Rs 320,000 respectively.

RECC plans to sell 1,000 cars this year and 6,000 the year-after, which, Maini said, would help the company to break-even and become cash positive.

RECC has dealerships in five cities including Delhi, Bangalore, Ahmedabad, Hyderabad and Jodhpur, which would be increased up to 15-20 cities by the end of next fiscal, Maini said.

He said the company recently started selling its cars in Malta, which would be followed by UK in the next three months.

"We are also doing test marketing of the cars in the US, Japan, Switzerland and Norway," he added.

Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor




Related Stories


Tata launches petrol Safari

GMI sales zoom 112.6% in August

Hyundai's Aug sales surge 46.8%



People Who Read This Also Read


Reva plans electric mini-buses

India, ASEAN to sign major pact

CCD seeks ways to sell oil PSUs






© Copyright 2003 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.











Copyright © 2003 rediff.com India Limited. All Rights Reserved.