TVS Motor Company on Thursday said it has bought a majority stake in Switzerland-based e-bike brand EGO Movement for 16.6 million Swiss francs (around Rs 131 crore) to foray into the personal e-mobility segment.
The company through its Singapore Subsidiary TVS Motor (Singapore) Pte Ltd, is acquiring an 80 per cent stake in the brand with 20 per cent left with the existing company promoters.
Led by the co-founders, Daniel Meyer and Marie So, EGO Movement is a Swiss technology company providing innovative mobility solutions through a portfolio of e-bikes, e-cargo bikes, and e-scooters.
The company has an omnichannel network across Switzerland, Liechtenstein, and Germany with plans to expand across Europe. It had generated revenues of 5 million Swiss francs in 2020.
"The partnership with EGO Movement reaffirms TVS Motor Company's commitment towards electrification and the broader sustainability agenda. We are building a strategic personal e-mobility ecosystem by scaling unique brands which share our vision of delivering compelling customer experience benchmarks through cutting-edge, aspirational products," TVS Motor Company Joint Managing Director Sudarshan Venu said in a statement.
EGO Movement has a strong presence in Europe with customer-centric products, a unique omnichannel network, and a visionary team at its helm, he added.
"Together, we will address global urbanisation by delivering unique e-mobility solutions with e-bicycles and mobility across a diversity of forms," Venu noted.
He further said: "It is also an important milestone in our journey to grow our presence in Europe, with the Norton Motorcycles acquisition last year and now the launch of the personal e-mobility platform." Elaborating further in a virtual press conference, he said that the electric-bicycle segment has been growing dramatically especially in Europe and America.
"It is forecasted to be a $20 billion market in five years and is growing rapidly. The largest markets currently for e-bikes are Germany and the Netherlands. It is huge in Europe but is also expanding to America and other parts of the world. I think it would also be an important urban mobility solution in various Asian countries including India," Venu said.
He noted that the Swiss firm had revenue of 5 million Swiss francs in 2020 and now TVS aims to grow it exponentially over the next five years to 100-150 million dollars.
"This year we expect its (EGO Movement) revenues to double to 10 million Swiss francs," Venu said.
When asked to elaborate on the future plans for the business, he said: "The plan is to really scale up the business in Europe. There are ten company-owned stores already in Europe. And then potentially look at India, America, and other markets as well," he added.
The company plans to scale up the sales network in Europe substantially. In India, the leisure market would have good potential in the short to medium term, Venu noted.
EGO Movement has more than 10 products in its portfolio catering to the varied needs of customers. It plans to add 10 more models to the portfolio.
"We are confident that together with TVS Motor Company, we will be able to create more value for all partners and customers of EGO Movement focusing on further growth by following our mission of a greener way of e-mobility," EGO Movement Co-founder and Chief Executive Officer Daniel Meyer said.
The company rolls out products from its Switzerland-based manufacturing facility.
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