Electric Car Reva|Business Strategy|Case Study|Case Studies

Electric Car Reva

            
 
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Case Details:

Case Code : BSTR030
Case Length : 9 Pages
Period : 2001
Organization : Reva Electric Car Company
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Automobile & Automotive

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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EXCERPTS

Background Note

The Maini Group (Refer Table V) was established in 1973 in Bangalore (Karnataka) by Sudarshan. K. Maini (Sudarshan), who aimed to blend western technology with Indian craftsmanship. The group followed the 'single zero principle' and its philosophy was 'Karma Parma Dharma' (Work is Worship).

The group's products ranged from precision components to in-plant material handling equipment and, from granites to abrasives. The group was also involved in international trading and offered ERP solutions. Maini Group had technological agreements with Abressa (Spain), Clark-Blue Giant (US), Hensel (Germany), HIAB (Sweden) and STILL (UK). Some of the major clients of the group included General Motors, Bosch, BT, MIC, OMR and other Indian companies in the automobiles, consumer goods, engineering, and food processing and pharmaceuticals industries. The group was known for its quality standards and its plants had ISO 9001 and QS 9000 certification. Chetan Maini (Chetan), son of Sudarshan, the chairman of the Maini Group, was always fascinated with cars and designed his first car during his school days...

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On the Road to Reality

Reva Electric Car Company (RECC) was established in 1994 through a joint venture between the Maini Group and Amerigon. Amerigon had a 32% stake in RECC's Rs 58 million equity and Maini Precision Products and Maini Materials Movement held the remaining 68%.

Amerigon helped RECC in building the chassis of Reva. The car was manufactured at RECC's plants at Bommasandra in Bangalore. The car's key technologies included its steel frame, the energy management system and a motor controller. The motor controller was developed through a technical collaboration with Curtis, one of the world's leading manufacturers of motor controller for electric vehicles. In 1996, RECC built the first prototype for Reva and received the mandatory certification. The prototype was also put through the 250,000 km 'shaker test' at the Automobile Research Association of India (ARAI), Pune. It was also tested at ARAI for homologation and was certified for road-worthiness. The prototypes were also tested in the US...

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