Delhi-NCR-based Starlit Power Systems inked a joint venture with a Chinese motorcycle and UPS battery manufacturer, Guangdong Dynavolt Technologies to manufacture batteries in India, according to a press release.
In the proposed JV, the Chinese firm will hold a 24 per cent equity stake, while the remaining will be held by the Indian firm. Financial terms of the deal, however, were not disclosed.
The JV and technology transfer are expected to help manufacture next- gen batteries for motorcycles, e-bikes, telecoms and UPS applications in India. Also, the agreement would open doors for bringing in packaged off-grid solar solutions to the Indian market.
“With good manufacturing facility at Starlit and access to technologies and markets with Dynavolt, we can produce VRLA batteries which are in huge demand both in India and overseas", said Chen Le Wu, chairman of Dynavolt.
“We have been working with Starlit for some time now and have a good relation with the team at Starlit. At the production level, it allows us to introduce product ranges in VRLA, gel and nano-gel batteries which are the products of the future and are widely used in the overseas markets,” Shey Hong Ping, general manager - operations, Dynavolt India, said.
The move comes just after Prime Minister Narendra Modi's recent visit to China, and marks the first Chinese investment in an Indian company the secondary power sector.
With over dozen subsidiaries in China, Guangdong Dynavolt has a market capitalisation of $1.47 billion (Rs 8800 crore) and is listed in the Shenzhen Stock Exchange.
“We will work as a genuine JV sharing the responsibilities and the management .Going forward, it opens doors for bigger projects and greater co-operation," said Sachin Shridhar, founder and chairman, Starlit Group.
Starlit Power Systems, which is a part of Starlit Group, has a state-of-the-art battery manufacturing plant at Sohna, near Delhi. The company produces 'Konstant' brand of batteries for automobiles, inverter, solar and e-rickshaw applications. It also does third-Party labelling for many known brands in the country.
Sarthi Capital Advisors (P) Ltd acted as merchant banker for the transaction.