4,345% Rally In 3 Yr: Servotech Power Systems Announces Major Update On India's EV Charging Industry

Servotech Power Systems Ltd., a small-cap firm with a market valuation of Rs. 1,874 Cr., has declared a strategic plan to boost the country's supply of key EV charger components. Servotech has established a technological partnership with a preeminent international company to accomplish this aim.

A state-of-the-art manufacturing facility being built by Servotech will be dedicated to producing PLCs, Control Circuits, and Power Modules-the three key components that make up an EV charger. According to the company, this move marks a decisive shift away from reliance on imports and positions India as a key player in the global EV charger supply chain.

To meet the demands of the rapidly expanding Indian EV industry, which is expected to require about 6 lakh units yearly, the new factory would initially have an annual manufacturing capacity of 24,000 power modules. However, it will eventually ramp up to 2.4 lakh power modules annually. This scalable strategy shows Servotech's aim to grab a significant portion of the growing EV charging market.

Arun Handa, Chief Technical Officer, Servotech Power Systems Ltd. said "Our goal is to make Servotech a preferred supplier of EV Chargers as well as preferred OEM supplier of Power Modules for Indian EV Charger manufacturers. By establishing a robust domestic supply chain, we contribute to the overall growth of the EV ecosystem, making charging solutions more affordable and accessible to a wider public."

The new plant is expected to be fully operational by December 2024. According to Servotech Power Systems, this initiative will directly contribute to reduced reliance on imported components, creation of high-skilled jobs within India, economic growth in the technology sector and advancement of India's EV charging capabilities.

Servotech Power Systems is an NSE-listed company that uses its more than 20 years of experience and knowledge in the electronics industry to offer tech-enabled solar and EV charging solutions. On Thursday, Servotech Power Systems closed at Rs 86.40 on the NSE. The stock has returned 3,304.76% in five years, 4,345% in three years, and 313.89% in one year, resulting in multibagger returns. YTD, the stock has gone up by 10.71%.