Monday, August 28, 2023

Gulf Oil Shifts Gears With A Controlling Stake In Tirex Transmission, A Leading DC Fast Charger Manufacturer For Electric Vehicles

• To invest ~ INR 103 Crores to Acquire 51% Stake

• This Marks the Third Significant Investment in EV Charging in line with Gulf’s Global Mobility strategy.

• The Acquisition Positions Gulf Oil to capture a share of India Market potential evaluated at USD 1 Billion to USD 1.4 Billion in 5-7 years.

In a strategic move to bolster its presence in the Electric Vehicle (EV) segment, Gulf Oil Lubricants India Limited (GOLIL), a Hinduja Group Company, announced to acquire controlling stake in Tirex Transmission Pvt Limited for ~ INR 103 Crores subject to the completion of definitive agreements and the satisfaction of predetermined closing conditions.

This is part of Gulf’s global ambition towards being a leader in the EV charging ecosystem, a market which is already valued at $20 Bn currently and expected to cross $200 Bn by 2030. As part of the same, GOLIL and its parent Gulf Oil International (GOI) have invested in Indra Renewables- a UK based AC charging (slow charging) company with a ~8% share of the UK home charging market. Indra has developed a leading bi-directional charging technology enabling V2G and V2X configurations. GOLIL has also invested in ElectreeFi, a leading EV SaaS player which provides charging management software (CMS) solutions for major OEM’s in India. The investment in Tirex, which is a manufacturer of DC Fast Chargers, will enable Gulf towards a synergistic end to end play in the global EV charging ecosystem.

Tirex Transmission is a key player in manufacturing DC Fast Chargers for EVs in India. With a track record of deploying over 400 high-capacity EV fast chargers across the country. It has carved a niche for itself as a leading technology player and a reliable brand in the fast-charging domain, with its comprehensive range of DC chargers, spanning from 30KW to 240KW. Tirex caters to a diverse clientele, including PSUs, Charge Point Operators (CPOs), Automotive OEMs, and Retail with range of chargers available for all vehicles types, including e-Buses.

Projections from the India Energy Storage Alliance (IESA) suggest a demand surge for around 1 million chargers by 2030, translating to a potential market value ranging from $1 billion to $1.4 billion in India alone. Further, there is a multi-billion-dollar opportunity in the global market where DC Charging is a fast-growing segment. Coupled with Tirex’s differentiated technology roadmap, Gulf is well positioned to capture a significant global market share in the coming years.

Mr. Ravi Chawla, MD & CEO of Gulf Oil Lubricants India Ltd, said, "This acquisition of majority stake in Tirex aligns with our commitment to expanding our footprint in the EV landscape and make a significant play in EV value chain where Gulf in India and globally, in recent years, have already invested in a slow AC charger company Indra Technologies, UK and ElectreeFi, an EV SaaS provider. Tirex's strong performance in the DC charger market, combined with Gulf Oil's robust brand strengths, distribution reach and relationships with OEMs & Infra/B2B customers, sets the stage for a synergistic partnership. Our combined strengths will undoubtedly pave the way for groundbreaking advancements in EV charging, both domestically and internationally in line with our Global Mobility strategy.”

He added, “Tirex is respected for its innovation and customer service, which align with our vision, and their products are well established with a diverse range of customers. It's an exciting time for us to be working together. We plan to leverage our current business model to penetrate the EV market and accelerate our growth plans."

Echoing this sentiment, Mr. Arth Patel, CEO of Tirex, stated, "Aligning with a global powerhouse like the Hinduja Group heralds a transformative chapter for Tirex. As we continue our journey in the rapidly evolving EV charger space, this collaboration will undoubtedly amplify our growth trajectory and technological advancements, fortified by Gulf Oil's financial strengths, extensive reach and business expertise."

The capital infusion into Tirex is earmarked primarily for invigorating R&D initiatives and scaling up production capacities and extending the service network. A concentrated push towards obtaining EU and UL certifications, backed by Gulf Oil International, will further solidify Tirex's global outreach. Gulf Oil's acquisition of Tirex accentuates its holistic approach to the EV charging ecosystem, dovetailing seamlessly with its prior investments in the Slow Chargers sector as this completes the portfolio of Slow AC chargers and DC fast chargers within Gulf globally. This strategic alignment fortifies Gulf Oil's ambition to emerge as a one-stop solution provider, addressing the entire spectrum of EV charging needs.

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