Electrotherm India Ltd on Wednesday announced that IFC, the private sector arm of the World Bank Group, will invest over Rs 101.37 crore ($25 million) to help expand the production of environment-friendly vehicles in Gujarat.
Out of the $25 million commitment, the debt consists of $15 million repayable in 10 years, maker of various equipment for metal heating industry informed the BSE.
The company would issue bonds for the remaining $10 million to the International Finance Corp (IFC), having option to convert them into equity shares, it said.
The company had recently ventured into the auto segment with battery-operated electric vehicles.
“We hope to increase our range of products and improve our competitiveness with IFC's support,” Electrotherm Managing Director Shailesh Bhandari said.
“An association with IFC will allow us to leverage its global expertise, and help us improve our social and environmental practices,” he said.
The project is expected to have a strong impact in the Kutch region, which is one of the state's most underdeveloped districts, the company said.
The company would use the funds to expand its electric vehicles business and upgrade its induction furnace business.
Source : Express India