Cholamandalam Investment's Vellayan Subbiah bullish on private capex cycle, bets big on e-mobility

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June 06, 2024 / 12:14 PM IST

Cholamandalam Investment’s Vellayan Subbiah bullish on private capex cycle, bets big on e-mobility

Vellayan Subbiah, Chairman of Cholamandalam Investment, has expressed strong optimism about the private capital expenditure (capex) cycle while also highlighting the numerous opportunities available for deploying capital.

Speaking in an exclusive interview with CNBC-TV18, on Wednesday, June 5, Subbiah said, “Very bullish about the private capex cycle.”

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He emphasised the positive outlook for various sectors and the potential for significant returns, given the right investments.

A key focus area for Cholamandalam Investment is the rapidly growing e-mobility sector. Subbiah, who was named EY Entrepreneur of the Year 2023 in India, revealed the company’s substantial investment in this area.

“We are betting big on e-Mobility,” he stated, announcing a commitment of ₹3,000 crore towards this venture. The investment will be channeled into launching electric three-wheelers, electric trucks, and electric tractors.

“India is going to shift to electric at a higher pace,” Subbiah predicted, reflecting his confidence in the fast-expanding sector and hoping the new government to stay supportive with policies to accelerate this transition.

“We believe we will get support from the government with new policies,” he added.

Subbiah also expressed optimism about India’s semiconductor industry.

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The company, in a joint venture with Renesas and Stars Microelectronics, plans to invest ₹7,600 crore in an OSAT facility in Gujarat, operational by 2026.