Olectra Greentech has secured a major order worth ₹1,800 crore for supplying 1,085 electric buses to Telangana State Road Transport Corporation (TGSRTC). The order was awarded to the company's subsidiary Evy Trans Private Limited (EVEY), which received two Letters of Award (LOAs) from TGSRTC for supply, operation and maintenance of electric buses for intra-city operations.

Order Specifications

The comprehensive order comprises two categories of 12-meter electric buses designed for urban transportation. TGSRTC has awarded contracts for both air-conditioned and non-air-conditioned variants to meet diverse operational requirements.

Contract Structure and Timeline

The order operates under a Gross Cost Contract (GCC) model, also known as OPEX model, spanning a 12-year contract period. This structure ensures long-term partnership between Olectra Greentech and TGSRTC, covering both supply and maintenance services.

Business Impact and Operations

The ₹1,800 crore order represents a significant milestone for Olectra Greentech's electric vehicle business. Under the arrangement, EVEY will procure the buses from Olectra Greentech Limited, which will handle the manufacturing and delivery over the specified 20-month period. The company will also undertake maintenance responsibilities for these buses throughout the entire 12-year contract duration.

This domestic contract strengthens Olectra Greentech's position in India's electric bus market and demonstrates the company's capability to handle large-scale orders. The transaction between Olectra and EVEY constitutes a related party transaction conducted on an arm's length basis, ensuring compliance with regulatory requirements.

Olectra Greentech has reported significant business developments across its operational segments, with the company's insulator division securing substantial orders while expanding its electric vehicle ambitions.

Insulator Division Performance

The company's insulator division has achieved a major milestone by securing orders worth over ₹300 crores. This substantial order book reflects the division's strong market position in the electrical infrastructure sector and demonstrates the company's diversified revenue streams beyond its core electric vehicle business.

Strategic Expansion Plans

Olectra Greentech is preparing to participate in Convergence Energy Services Limited's (CESL) tender for over 3,000 buses. This strategic move represents a significant opportunity for the company to expand its electric vehicle portfolio and strengthen its position in India's growing electric mobility market.

Operational Track Record

Since starting operations, Olectra has demonstrated consistent execution capabilities with an impressive deployment record. The company has successfully deployed over 3,600 buses and 116 tippers, showcasing its operational expertise in the electric commercial vehicle segment.

Strong Order Book Position

The company continues to maintain a robust order book, reflecting sustained demand for its electric vehicle solutions. This strong order position provides revenue visibility and demonstrates market confidence in Olectra's products and services across multiple business segments.