TIDMEQIP
RNS Number : 5478Z
Equipmake Holdings PLC
16 May 2023
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
16 May 2023
Equipmake Holdings plc
("Equipmake" or the "Company")
Licensing Agreement with Sona Comstar:
Provides Equipmake with exposure to the one of the largest
automotive markets globally.
Equipmake, the UK-based engineering specialist pioneering the
development and production of electrification products across the
automotive, aerospace, bus, coach and fire truck industries, is
pleased to announce it has signed a licensing agreement with Sona
BLW Precision Forging Limited (Sona Comstar) (the "Licensing
Agreement"). Sona Comstar is a global automotive systems and
components manufacturer, headquartered in India, with annual
revenue in excess of US$325 million and a market cap in excess of
US$3.5Bn.
Overview
-- The Licensing Agreement will see Equipmake license certain
products from its range of drive motors, inverter, and electric
powertrain technology to Sona Comstar for applications in electric
cars, buses, commercial vehicles and off-road vehicles in India,
Thailand and other select South Asian countries.
-- India is a high growth market, with share for electric
passenger vehicles forecast to increase to 25% by 2032, up from
less than 1% in 2022, and electric buses to increase to 21% by
2032, up from 5% in 2022.(1)
-- Both parties to jointly address other markets and territories
for certain Equipmake products, utilising Sona Comstar's
manufacturing and distribution networks.
-- Under the Licensing Agreement, Sona Comstar will pay
Equipmake a fixed one-time licence fee together with running
royalties on the licensed products manufactured and sold by Sona
Comstar. The manufacturing of the licensed products is expected to
commence in 2025.
Commenting on the Licensing Agreement, Ian Foley, CEO of
Equipmake said: "Sona Comstar is a global automotive systems and
components manufacturer and one of India's leading automotive
technology companies. The Licensing Agreement provides a material
gear change for our business and opens new and strategic markets
for Equipmake which would otherwise be inaccessible.
"Sona Comstar approaching and selecting Equipmake as its partner
is a demonstration of a UK engineering success story which will
enable us to export our considerable expertise and product offering
to significant and fast-growing automotive markets in Asia, whilst
continuing to grow our engineering and manufacturing operations in
the UK to satisfy our increasingly international and varied
customer base.
"I am delighted with this development and believe that this has
the potential to create substantial value for our shareholders as
we continue to build our reputation for electric powertrain
innovation and product excellence with customers around the
world."
Commenting on the partnership Mr Sat Mohan Gupta, CEO of Motor
Business at Sona Comstar, said: "Equipmake's patented next
generation spoke motors and inverters offer one of the highest
power and torque density in its segments globally and we are
delighted to partner with Equipmake to bring their cutting-edge
motors and inverters technologies to India.
"With Equipmake's advanced technology and Sona Comstar's
manufacturing and sales capabilities, we aim to offer our customers
high-performance, efficient, cost-effective electrified drivetrain
solutions. This is yet another step towards our commitment to
offering innovative solutions to drive faster adoption of electric
mobility in India and globally."
Further Information
Sona BLW Precision Forgings Ltd (Sona Comstar) and Equipmake
have signed a technology licensing agreement whereby Equipmake will
license elements of its patented spoke motor and inverter
technology to Sona Comstar to manufacture and sell EV powertrains,
sub-systems, and components for electric cars, buses, commercial
vehicles and off-road vehicles in defined markets.
Sona Comstar will lead the business development and customer
sales in India, Thailand and select South Asian countries. Sona
Comstar will exclusively manufacture EV powertrains, sub-systems,
and components, based on Equipmake's patented technology, for the
target applications exclusively in India and other select markets.
Under the Licensing Agreement, Sona Comstar will pay Equipmake a
fixed one-time licence fee of GBP300,000 together with running
royalties on the licensed products manufactured and sold by Sona
Comstar. The companies expect the serial production of these
systems to commence in 2025.
CRISIL, an S&P Global company, and India's foremost provider
of ratings, data, research, analytics, and solutions, expects the
demand for electric passenger vehicles in India to increase to 25%
in 2032, up from less than 1% in 2022, led by the commercial
segment (fleet) due to favourable economics. In absolute numbers,
CRISIL expects the electric car market in India to grow from 30,000
units in 2022 to 1.6 million in 2032. CRISIL expects the
penetration of electric buses in India to increase to 11% in 2027
and 21% in 2032, up from 5% in 2022, driven by improving unit
economics, government push at state transport undertakings (STU)
and ESG concerns. STU will initially drive electric bus
penetration, followed by school and staff bus segments. In absolute
numbers, CRISIL expects the electric buses market in India to grow
from 1,600 units in 2022 to over 27,000 in 2032.
Sona Comstar is an innovation-led automotive technology company
delivering mission-critical systems and components to customers
worldwide. It offers a wide range of traction motors and
controllers for India's electric two- and three-wheeler segments.
Sona Comstar is one of the largest manufacturers of EV traction
motors in India and has sold more than 180,000 EV traction motors
since starting production of these indigenous traction motors at
its Chennai plant in November 2020. The company's strategic
objective is to develop traction motors and inverters for all
mobility segments and offer the right motor, made using the right
technology, to each vehicle application. With this partnership with
Equipmake, Sona Comstar will expand its offerings to include
high-voltage motors and inverters for electric buses, commercial
vehicles and passenger cars.
(1) CRISIL analytics
**ENDS**
For further information, please contact:
Equipmake Via St Brides Partners
Ian Foley, Founder and CEO
Steven McGillivray, CFO
Panmure Gordon (Corporate Adviser & Joint Tel: +44 (0) 20 7886
Broker) 2500
John Prior / James Sinclair-Ford / Freddie
Twist
Hugh Rich / Sam Elder
VSA Capital Limited (Joint Broker) Tel: +44 (0) 20 3005
Simon Barton / Alex Cabral 5000
St Brides Partners (Financial PR Adviser) Tel: +44 (0) 20 7236
Susie Geliher / Paul Dulieu 1177
equipmake@stbridespartners.co.uk
About Equipmake
Equipmake is the UK-based engineering specialist pioneering the
development and production of electrification products to meet the
needs of the automotive, aerospace and other sectors in support of
the transition from fossil-fuelled to zero-emission
powertrains.
Equipmake is a leader in ultra-high performance electric motors
and complete EV drivetrains and ultra-fast power electronic
systems. As well as developing proprietary technology - such as an
ultra-compact, lightweight high performance spoke motor - it also
offers industry-leading EV consultancy.
Equipmake has developed a vertically integrated solution
providing fully bespoke solutions. The Company has built a
significant pipeline of opportunities, as demand for electric
vehicles increases as part of the global decarbonisation
movement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NEXEQLBFXELEBBZ
(END) Dow Jones Newswires
May 16, 2023 02:00 ET (06:00 GMT)
Equipmake (AQSE:EQIP)
Historical Stock Chart
From Apr 2024 to May 2024
Equipmake (AQSE:EQIP)
Historical Stock Chart
From May 2023 to May 2024