IOCL enters Joint Venture Agreement with Sun Mobility Pvt Ltd Singapore for battery swapping business

The Board members of oil PSU IOCL have approved the formation of a Joint Venture Company for battery swapping business in India as a Private Limited Company with 50:50 collaboration with Sun Mobility Pte. Ltd. Singapore (SMS).

As per the exchange filing, Indian Oil Corporation Ltd. (Indian Oil) and Sun Mobility Pte. Ltd Singapore (SMS) has entered into a joint venture for the Battery Swapping Business.

The Share exchange ratio of JV is 50:50 JV between Indian oil & SMS.

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The Joint Venture will carry out the following businesses:

Deployment and operation of Battery-as-a-Service solution (BAAS) for two-wheeler, three-wheeler, and four-wheeler vehicles, each with a gross vehicle weight lower than 2 tonnes (Small Format Electric Vehicle - SFEV).

Retrofit to convert to SFEV using docks and batteries to enable their functioning as electric vehicles for SFEV-BAAS over a network of swap points including IndianOil Retail Outlets.

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The initial paid-up share capital of the JV shall be Rs.2 lakh comprising 20,000 equity shares having a face value of Rs.10 each to be contributed equally by the JV partners.

As per the Significant terms and conditions of the JV, it shall undertake and operate a Swapping Business related to deployment and operation of BAAS for SFEVs in India.

The Size of the  Consolidated Revenue of Indian oil is Rs  8,81,235 crores and SMS is USD 11.524 Mn for the financial year 2023-24.

The EV 2W and 3W market is seeing exponential growth in India. Battery Swapping technology is expected to be one of the prominent energy dispensing technologies in EVs, as per company said.

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