Trinity Cleantech to set up 1,500 charging points this year, 5,000 more next year

Hyderabad-based Trinity Cleantech Private Limited (TCPL) is a perfect example for a business born out of necessity. TCPL, formerly Trinity Transformers Pvt Ltd (TTPL), started business in 2012 after buying a sick company which was into manufacturing transformers. In 2017-18, Olectra in collaboration with BYD brought e-buses business to India. While the buzz was around electric vehicles, less information was available on how will these e-buses run in India. As TCPL, earlier TTPL, was into manufacturing of power equipment, it was roped into making EV charging points for Olectra. “TCPL was born out of compulsion to serve Olectra, the EV business of our Group. We sent our resources to China to gain knowledge about EV charging. We started with designing EV charging stations for the road transport departments of the States. As the States that bought Olectra buses, also placed order for charging infrastructure. That’s how we started and are growing further on this opportunity,” CEO of Trinity Cleantech Private Limited, M Raj Kumar told Bizz Buzz

How has TCPL grown over the period?

After Olectra was bought by MEIL, we knew that providing charging for EVs as a business had the opportunity to grow. Then ETO Motors was formed for manufacturing e-autos. For Olectra’s e-buses we had introduced 60 kw charging stations, now for three-wheelers TCPL launched three kw charging points. TCPL business is divided into three domains – charger manufacturing business, energy trading business (Charge Point Operator) and EPC (Engineering, Procurement, Construction) contract. Till recent, we were captive charging infrastructure providers. This year we have decided to enter public charging.

What is TCPL working on these days?

From our Jadcherla manufacturing plant we have been assembling chargers for our EVs, now we will be selling them to customers. From 2022, we have been manufacturing chargers on a small scale and, we have installed 1,000 chargers across India. This year our target is to sell 1,000 chargers which will be available on public domain. By September, four types of chargers will be available to cater to a wide range of EVs, from two-wheelers to premium cars. Each charger costs around Rs 10,000. We also have a mobile application, Thunder Plus, that is available on Android and IOS. Going ahead, TCPL will be visible in the market under its brand name Thunder Plus.

Coming to TCPL’s key business, tell us about your work as a CPO...

In Hyderabad we have set up 120 charging points at Metros, and Railway Stations. In Gujarat, we have around 100 e-autos from ETO Motors, for which TCPL has set up the charging infra. Delhi, Hyderabad and Bangalore are our major markets. Delhi target is half of our target for the year, wherein we want to install 1,470 charging points while 900 are already present. Our target in Telangana for the next year is to set up 400-500 charging points. We will touch highways later as it requires more investment and bandwidth.

Is the ratio near to equal when compare the number of charging stations to that of EVs?

I feel it is a chicken and egg situation. The EV makers argue that there are not plenty of charging points for them to grow. And, charging infra providers maintain that there are not many EVs who will charge at public stations. Personal vehicles do not depend on charging stations as they can charge it from home. There is no growth for us in the personal EV segment. The demand for a CPO will amplify only when there is an increase in commercial EV users. The dependency of personal vehicles on public charging stations comes in only during outstation travel. The second requirement arises only when one cannot afford a charger at their residence. The pressure is enough from Centre to convert at least 50 per cent of the petrol pumps into electric charging points over next three to four years. Apart from the government, affiliated departments related to bus stands, railways should get more aggressive.

What is your take on Telangana, AP governments approach towards EV?

Telangana government is aggressive. They have created a nodal agency called as Telangana State Renewable Energy Development Corporation Ltd, which takes space from GHMC and gives it to a CPO. They have given us seven and we will fight for 25. I need visibility and traction only then I can count revenues otherwise it would be a loss. In Andhra Pradesh there is not much happening. With KTR spearheading the IT sector in Telangana, he understands that all these measures will lead to investments, this focus is missing in AP. Telangana wants to fast track EV adoption but coordination with power utilities is missing. I am confident the GHMC has available land for CPO’s but there are multiple interests involved and there is no transparency. Here land is given on three year lease period, in Delhi it is 10. Three is a short duration, if we are told to vacate then the investment would run into loss. The case is tough in Karnataka, and way tougher in Tamil Nadu, due to corruption.

What are the challenges TCPL faces as a CPO?

The number one challenge is the land. Second is the incoming connection for power line. Currently, power for EVs is given on concession. If tomorrow the government asks us to buy at market price then my cost will go up by 40-50 per cent, and I cannot increase the sale price so will have to absorb the burden. We are also dependent on government land for setting up a charging station. In that regard the Delhi government stands first. Delhi has three power utilities while Telangana has one. Their municipal corporation summoned the power utilities and informed about the available land packets, the clause was these utilities had to make sure that power had to be provided to the CPO’s. So, the two challenges of land and power is taken care in Delhi. The third is investment and fourth is the demand. If there is a demand then bankers will provide funding.

Any new technology to expect from TCPL…

There are two technologies - plug and charge is likely to be launched this year, the second tech, vehicle to grid (V2G) will come up after two or three years. We have our eyes on solar backup, and carbon credit certificate, too. This is going to be tomorrow’s next big economy. The government is working on a system to be installed in the grid pipe which will show the percentage of brown and green energy. This will allow people to choose between green and brown.

Any expansion or plan to raise investments…

This year, the demand of capital for plant expansion is not much. Our main balance sheet is all from being a CPO. So, the funds we are looking to raise, through debt route or equity, is for setting up charging points/stations. By end of Q4, I need Rs 22-23 crore and in FY25 at least Rs 70 crore. We are in talks with financiers but let us wait for another three months and after that we can talk about it. Each charging station needs Rs 12-13 lakh investment. Then I have to buy energy and sell. I buy energy at Rs 7 and sell for Rs 14, the margin is Rs 7. For next two years, we will not see profits. Coming to revenues, it was around Rs 60 crore then dropped down to Rs 30 crore and last fiscal we closed at Rs 18-20 crore. It will take us two years to earn back the investment and later, its only profits. Speaking about employee count, TCPL has a team strength of 27. I will take this number to 40 this year. Next year, if we achieve what we have planned then I will double the manpower. This hiring is needed as we are entering new cities namely, Mumbai, Chennai, Nagpur and Pune.

How are you going to compete with the 20 odd players present in the same field?

Every business has crowd but serious businesses are very few. The threat is from Reliance and Adani but they will not cover every part of India. Our target is 1,500 charging points by this year and 5,000 next year. Our revenue target for next fiscal is Rs 25 crore. To beat competition I will occupy prime places or, will look at collaborating with a foreign player to give Reliance a fight. Anyway, by next year I should have some cushion volume.

How green is the EV ecosystem, if power consumption is not wholly from renewable energy?

Presently we are consuming around 130 BU (Billion units) of energy per month and EV charging demand is only three per cent of it. The energy required for EV charging is expected to grow to seven per cent of the total demand by 2030. If we put in place demand-side management, such a low percentage of energy will not be a big problem. As per the plan, GoI is going to add 250 Gwh of renewable energy by 2030 and that should be sufficient.

How will large-scale EV adoption impact the electricity grid?

The infrastructure for charging EVs has certain challenges, one of which is managing the demand on the electrical grid. Present technology allows for continuous monitoring and analysis of data from EV charging stations. There is a need to put in place Demand-Side Management (DSM) or time-of-use (ToU) activities. DSM programmes involve planning, implementation and monitoring activities of electric utilities that are designed to encourage consumers to modify their degree and pattern of electricity consumption. We will very soon see variable energy tariffs based on the time and season. The tariff will be more during peak hours and less during non-peak hours. These practices are being followed in Western countries. When there is a peak, the consumer has to either utilise less electricity or has to pay more.