In an exchange filing, the company said that the board has approved the formation of joint venture company for battery swapping business in India as a private limited company with 50:50 collaboration between IOCL and Sun Mobility, Singapore.

The JV will be engaged in the business of deployment and operation of battery-as-a-service solution (BAAS) for two-wheeler, three-wheeler, and four-wheeler vehicles, each with a gross vehicle weight lower than 2 tonnes (small format electric vehicle - SFEV) and retrofit to convert to SFEV using docks and batteries to enable their functioning as electric vehicles for SFEV-BAAS over a network of swap points including Indian Oil retail outlets.

The firm stated that the initial paid-up share capital of the JV will be Rs 2 lakh comprising 20,000 equity shares having face value of Rs 10 each to be contributed equally by the JV partners.

Explaining the rationale, IOCL said that currently, EV 2W and 3W market is seeing exponential growth in India. Battery swapping technology is expected to be one of the prominent energy dispensing technologies in EVs.

Indian Oil Corporation is an Indian government owned oil and gas explorer and producer. As of 31 March 2024, the Government of India held 51.50% stake in the company.

The company’s standalone net profit tumbled 51.90% to Rs 4,837.69 crore in Q4 FY24 as compared than Rs 10,058.69 crore recorded in Q4 FY23. Revenue from operations (excluding excise duty) declined 2.47% to Rs 1,97,978.23 ‬crore in the quarter ended 31 March 2024 from Rs 2,02,994.07 crore posted in Q4 FY23.