Ashok Leyland board approved the acquisition of OHM India and the equity investment of Rs 300 crore

16 Aug 2023 , 11:03 AM

On Monday, August 14, commercial vehicle manufacturer Ashok Leyland said that its board has authorized the purchase of Ohm Global Mobility Private Ltd (OHM) at 100% from OHM International Mobility Ltd for a pittance of Rs 1 lakh.

The consideration was little because the company has not yet started operating. According to Ashok Leyland in a regulatory filing, OHM is now a wholly owned subsidiary of the business as a result of the transaction.

Additionally, Ashok Leyland would contribute up to Rs 300 crore in equity to OHM in order to operationalize the business. Additionally, subject to required permissions, current E-MaaS contracts will be migrated to OHM.

According to the statement, Ashok Leyland will offer any guarantees or comfort letters that are required to be delivered in order to secure future orders, pending the required clearances.

Executive Chairman Dheeraj G. Hinduja stated, ‘E-MaaS is becoming more significant in India, and we believe that now is the ideal time for us to operationalize OHM India. Both the public and private sectors will use E-MaaS as a method to increase EV penetration.

Ashok Leyland’s managing director and CEO, Shenu Agarwal, stated that ‘E-MaaS has evolved into an essential and significant component of the Indian commercial EV environment. We needed a distinct firm for that because today a sizable portion of the EV Bus market, particularly state transport undertaking orders, are routed using the E-MaaS mechanism.

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