Indian power company JSW Energy has acquired 100 percent stake in JSW Electric Vehicles in a bid to enter the country’s rapidly expanding electric vehicles (EV) market.

According to the company’s filing with the Bombay Stock Exchange (BSE), the acquisition is part of diversification strategy of JSW Energy to foray into electric vehicles, energy storage systems and charging infrastructure which will be housed under the acquired entity – JSW Electric Vehicles.

The shareholders of JSW Electric Vehicles before this acquisition were Magnificient Merchandise, Advisory Services Private Limited (a company owned by promoter of JSW Energy), and Parth Jindal.

JSW Electric Vehicles has a paid share capital of ₹0.1 million (~$1,534) and it is a debt-free company.

The acquired entity has been set up to manufacture electric motor vehicles, as well as all types of parts, spare parts, engines, appliances, and apparatus required.

The firm was incorporated on 18 July, 2017 and is yet to commence its operations in the country. JSW Electric Vehicles presently has its presence only in India.

According to the company, JSW Energy Ltd achieved a whopping 119 percent rise in net profit for the third quarter of 2017, compared with the corresponding quarter of the previous fiscal.

Previously, Mercom had reported that the electric vehicle (EV) market in India is slowly beginning to gain momentum after three years of relative inaction. However, India still lags far behind other nations when it comes to EVs.

India is now targeting the deployment of 5 million to 7 million electric vehicles across the country by 2020 under the revised National Electric Mobility Mission Plan (NEMMP) 2020, released in August 2017.

Image credit: By Michael Movchin [CC BY-SA 3.0] via Wikimedia Commons