Concerns mentioned in the below article:
https://thryvv.in/article/olectra-greentech-electrifying-the-indian-bus-industry/
- In the August 10th, 2023 Conference Call the management guided for 1200-1500 e-buses & e-tippers for FY23-24. The management then reduced that guidance to 1000 in the November 7th, 2023 Conference Call. The management again reduced the guidance to 700 in the February 1st, 2024 Conference Call
- The management is guiding for 5000+ e-buses & e-tippers in FY25-26 and is currently struggling to reach 1000 in FY23-24. I have my doubts about the management’s ability to scale up so quickly for FY25-26.
- Even with the 8088 e-bus order book on hand, I am not able to understand the management’s reluctance to work in multiple shifts instead of the current one-shift structure of production.
- My second biggest concern stems from their strong technology partnership with BYD (a Chinese Company). The partnership started in 2015 and as per the management, it is likely to go beyond 2025. Olectra Greentech Ltd. is dependent on BYD for the battery cells and some of the child parts relating to the powertrain. Apart from this, all the other components, are sourced locally in India. As per the management, 25-40% of e-bus components come from BYD. This heavy dependency on a Chinese company is concerning. Considering the current geo-political tensions between India and China, it is very likely that the government of India would not view relations with a Chinese company favorably.
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