Adani Total Gas forays into EV charging infrastructure
It is not just the auto companies that are foraying into electrical vehicles. The oil and gas companies that have a vast network of fuel outlets spread across India are now looking to leverage their existing network franchise to make a foray into electrical vehicles (EV) charging infrastructure.
N Chandrasekharan of Tata Sons had rightly pointed out that the pace of adoption of EVs in India will depend on how fast the infrastructure develops.
It was therefore hardly surprising when the stock of Adani Total Gas rallied by a massive 8% in a single day on 25th March. That was after Adani Total Gas announced that it was foraying into the electric mobility infrastructure sector.
This basically refers to the EV charging stations or points where the electrical vehicles can charge and exchange batteries. The first EV charging station of Adani Total Gas will be launched in Ahmedabad.
The charging station will be launched at ATGL's CNG station located at Mani Nagar in the outskirts of Ahmadabad. Adani Total Gas has been one of the big outperformers of the Adani group that has been instrumental in propelling the group to a market cap of well over $150 billion in a short span of time.
One of the highlights of the Adani Total Gas EV charging station will be the quick turnaround time for EV owners with top-class fast technology.
Incidentally, ATGL is India's largest private CNG and piped cooking gas distributor. CNG is the gas on which most of the vehicles run in order to maintain a non-polluting environment. Adani is already investing heavily in the green technology and green fuels space and this is just an extension.
At a single outlet, Adani Total Gas can now provide a choice of newer green fuel to the larger consumer base in India, apart from the traditional fuelling facility.
In the first phase of roll out, Adani Total Gas plans to roll out a network by setting up 1,500 EV charging stations across the country. This will just be a start and Adani Total Gas is also ready with a back-up plan to move much beyond 1,500 stations if required.
This will be in line with the burgeoning EV ecosystem in India. Further expansion will be largely a function of demand generation and momentum building in the country.
Adani Total Gas wants to be among the early birds to catch the worm. Big players like IOCL and BPCL are already laying out aggressive plans to venture into electric mobility.
Adani Total Gas wants to ensure first mover advantage so that they can capture a significant share of the EV market ecosystem that has just about started developing. This is likely to be a market where an early entry could make a huge difference to a sustainable edge.
ATGL comes with some natural advantages in the EV infrastructure business. For instance, it will leverage the group’s inherent capacity to generate renewable power, which can help them to further leverage group level synergies to source green power.
Also, the global best practices from its French partner, Total Energies, in the EV infrastructure space will be a major competitive edge for ATGL. The company is eying market leadership in the space.
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