PG Electroplast shares surged 15% intraday, reaching a 52-week high of Rs 718.35, before settling 10% higher on the day (at the time of publication of this report). PG Electroplast Limited, through its subsidiary PG Technoplast, has entered into a strategic alliance with Spiro Mobility to manufacture electric vehicles (EVs) and lithium-ion batteries in India. This collaboration positions PG Electroplast as Spiro’s exclusive manufacturing partner, marking its entry into the rapidly growing EV sector. With both companies leveraging their respective strengths, this partnership aims to scale sustainable mobility solutions in emerging markets and capitalize on India’s burgeoning demand for EVs.

PG Electroplast Signs Exclusive EV Manufacturing Agreement with Spiro Mobility

Strategic Partnership:

PG Electroplast, through its wholly-owned subsidiary PG Technoplast, has inked a definitive agreement with Spiro Mobility to exclusively manufacture Spiro’s EVs in India.
This partnership extends to the production of lithium-ion batteries and related components, further diversifying PG Electroplast’s business portfolio.
Responsibilities Defined:

PG Technoplast: Oversees manufacturing facilities, raw material procurement, and parts assembly.
Spiro Mobility: Focuses on R&D, marketing, sales, and distribution of the EV products.

Market Reaction: Stock Hits New High

Stock Surge:

Shares of PG Electroplast rallied 15% intraday, reaching a 52-week high of Rs 718.35, before settling 10% higher.
The announcement reinforces investor confidence in the company’s growth trajectory, driven by its entry into the EV and battery manufacturing sectors.

Expanding Horizons: EV and Lithium-Ion Battery Production

Growth Opportunity:

PG Electroplast’s venture into EV manufacturing aligns with India’s transition towards sustainable mobility solutions.
Vishal Gupta, Managing Director (Finance) of PG Electroplast, emphasized the partnership’s potential to make a significant impact on India’s EV market, stating, “This marks a new horizon of growth for the company.”
Mutual Confidence:

Kaushik Burman, CEO of Spiro Mobility, noted PG Electroplast’s proven execution track record, expressing optimism about the collaboration’s ability to drive mutual success and expand the EV market in emerging economies.

Financial Performance and Upward Forecasts

Strong Financial Results:

PG Electroplast reported robust performance in the September quarter, with:
46% YoY revenue growth.
57% rise in net profit.
Revised Forecasts:

Annual revenue guidance increased to Rs 4,250 crore (up from Rs 3,650 crore).
Profit projection revised upward to Rs 250 crore, reflecting the company’s expanding capabilities and market presence.

Impact on India’s EV Market

Broader Industry Implications:

This partnership bolsters both companies’ positions in the Indian EV market, supporting the growing demand for affordable and sustainable mobility solutions.
Spiro Mobility’s focus on energy-efficient, durable, and cost-effective electric two-wheelers aligns with the government’s push for EV adoption.
Sustainable Mobility Goals:

With Spiro’s innovation and PG Electroplast’s manufacturing expertise, the alliance is poised to make a significant contribution to India’s shift towards green transportation.