Servotech Renewable Power System, a manufacturer of EV chargers, solar products, and power backup solutions, announced the incorporation of a new wholly owned subsidiary on Tuesday, January 21. The development is likely to draw investor attention during Wednesday's trading session.

New CSR Subsidiary Formation

The company has incorporated Servotech Foundation as a wholly owned subsidiary, which will be treated as a related party. The subsidiary has been established as a Section 8 company under the Companies Act, 2013, and has yet to commence business operations.

The subsidiary will serve as the company's CSR arm, focusing on various corporate social responsibility activities. These activities will encompass:

• Employability and education initiatives
• Entrepreneurship development programs
• Sustainable development projects
• Environmental protection measures
• Health and nutrition programs
• Additional areas covered under Schedule VII of the Companies Act

Recent Product Launches

Earlier this month, Servotech Renewable Power expanded its product portfolio with entry into the electric three-wheeler segment. The company launched SULTAN, a lithium-ion battery specifically engineered for electric three-wheelers, accompanied by Zest, a dedicated battery charger designed to enhance charging efficiency and vehicle uptime for three-wheeler OEMs, dealers, and distributors.

Additionally, the company introduced Voltie, a 2 kW on-grid solar inverter engineered for residential and small-scale commercial applications, strengthening its renewable energy offerings.

Share Price Performance Under Pressure

Despite product diversification efforts, Servotech Renewable Power shares have faced significant selling pressure since June. The stock has declined 61% from recent highs, currently trading at ₹65.85 per share.

The stock has closed five out of the last six months in losses, with the sell-off intensifying in January 2025 with a 17.20% decline. The shares ended 2025 with a sharp 52.30% crash, marking their biggest calendar-year fall in the last five years.

Long-term Performance Context

While short-term trends appear challenging, the stock's long-term performance remains notable. Over the past five years, shares have gained 2,920%. Between 2020 and 2024, the stock experienced a sustained bull run, closing all calendar years higher and delivering returns of 22,420% during this period.

India's electric three-wheeler segment has emerged as one of the fastest-growing categories within electric mobility, supported by urbanization, rising last-mile delivery needs, and policy incentives, providing a favorable backdrop for the company's recent product launches in this segment.

Servotech Renewable Power has announced its strategic expansion into the electric three-wheeler market segment with the launch of lithium-ion battery systems and charging solutions. This development marks a significant diversification move for the company as it broadens its product portfolio in the electric vehicle ecosystem.

Product Portfolio Expansion

The company's entry into the electric three-wheeler segment includes the development of lithium-ion battery technology specifically designed for this market. Additionally, Servotech Renewable Power will offer complementary charging solutions to support the complete ecosystem for electric three-wheeler operators.

Market Positioning

This expansion represents the company's strategic positioning in the growing electric vehicle market, particularly targeting the commercial three-wheeler segment. The move aligns with the increasing adoption of electric vehicles in India's transportation sector.

The announcement indicates the company's commitment to diversifying its renewable energy and power solutions portfolio beyond its traditional offerings. However, specific details regarding investment amounts, production capacity, or market launch timelines were not disclosed in the available information.