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Kabirdass plans new unit for manufacturing electric scooter spare parts Print E-mail
Written by Vijay   
Tuesday, 26 April 2011
Mumbai: Electric bike and scooter manufacturer Kabirdass Motor Company plans to set up a new manufacturing unit for manufacturing of spare parts of electric scooters.

In order to fund the setting up of a new manufacturing unit, expansion of existing facilities and to meet the long term working capital requirements the company has filed draft red herring prospectus with the SEBI for initial public offering of equity shares, aggregating upto Rs 78 crore.

Kabirdass Motor Company was formed in 2006 to develop and commercialize zero emission vehicles (ZEV). It presently outsources the various parts of the scooter it assembles and the finished product is sold in the market through dealers.

The company is in the process of expanding it's existing manufacturing facility at Poonamallee High Road, Velappanchavadi, Chennai. Through the funds available from this Issue, the Company is planning to develop the critical parts in - house. The parts considered for in - house development are steel parts – mainframe, plastic parts, motor, controller, paint shop, charges and battery. This would help the Company to reduce the cost and realise better margins on the product.

It proposes to invest Rs. 14 crores on Land & Land Development, Rs. 3.5 crores on Building Construction, Rs. 40.02 crores on Plants & Machinery and Rs. 5.68 crores on Research & Development. Of the total Rs. 63.2 crores, Rs. 56.05 crores is estimated to be deployed in 2011 - 2012 and Rs. 7.15 crores is estimated to be deployed in 2012.

The land for the proposed Project has been identified at Palnallur Village, adjacent to SIPCOT Industrial Park at Sriperumbudur near Chennai. The total area of the proposed site is 14.34 acres.

So far the Company has assembled scooters up to 1500 watts motor power. Through the expansion project, the Company plans to have higher capacity electric scooters ranging from 2,000 watts to 3,000 watts motor power with long range of 150 to 200 KM on single charge. In addition to this, the company proposes to have standardization and unification of spares for all types of electric scooters. It plans to utilize the service of consultancy providers for providing technical consultancy services to the Company for the manufacture of higher capacity scooters and consultancy fees will be paid from the proceeds of the Issue.

The company plans to invest Rs 3.18 crore on new model development, Rs. 1.5 crores for Technology and Rs. 1 crore for software and other facility expenses.

For the nine months ended December 31, 2010, the company reported a total income of Rs 1.35 crore and net profit of Rs 73.63 lakh.

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