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TVS Motor Company today announced the acquisition of Switzerland-based electric bicycle company EGO Movement in an ₹132-crore (CHF 16.6 million) all-cash deal.
The company picked 80 per cent in EGO through its Singapore arm and the remaining 20 per cent will be held by the founders of the Swiss company.
Three outcomes
The two/three-wheeler major’s acquisition signals three broad outcomes. First, the company’s intent to become a personal mobility player with a wide-ranging portfolio, including electric bicycles, which are seen as future mobility products with huge potential particularly in urban centres.
Second, the acquisition is set to create more visibility for the TVS brand in Europe, which is at the forefront of electric mobility. Third, the acquisition offers the company the scope to further boost its international revenues, which have grown to 30 per cent now. E-bikes can accelerate this further.
“The e-bike segment has been growing dramatically particularly in Europe and the US. This will come to other markets as well. So, we are super excited about this deal,” said Sudarshan Venu, Joint Managing Director, TVS Motor Company.
Scaling up overseas biz
EGO Movement, founded by Daniel Meyer and Marie So, has a wide range of e-bikes, e-cargo bikes, and e-scooters. The company employs about 40 people and reported a revenue of CHF 5 million in 2020. It sells around 3,500 units a year including e-personal mobility vehicles in the city, hybrid and cargo category. The plan is to scale up the business in Europe, where the e-bike market is forecast to grow to $20 billion in five years. “EGO has unique design capabilities and offers a customer-focussed approach. We have 10 stores already in Europe, particularly in Switzerland and Germany. Liechtenstein is also a fast-growing market. Apart from the Europe expansion, we will look at America, India and other markets, too,” said Sudarshan Venu.
Along with digital and other forms of distribution, EGO’s stores will be ramped up to 20 by 2022 and 32 by 2025 in Europe. With the proposed expansion, TVS expects to grow the revenue of EGO to CHF 10 million this year and about $100 million (CHF 90 million) in about five years.
In India, the leisure segment offers scope for the launch of EGO e-bikes, while in the long-term other segments will also offer scope, he said.
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