JBM Group Eyes Fortum’s India EV Charging Arm, Signs Exclusivity Pact

According to news reports, JBM Group, which has its headquarters in Gurugram, has signed an exclusive agreement to purchase the bulk of GLIDA, the Finnish state-run energy company Fortum Oyj's Indian electric vehicle (EV) charging network. With the transaction, the third-largest Nordic power firm will completely leave India, a market it entered in 2012.

Opus Corporate Finance LLP, a London-based firm, is providing advice on the Butterfly transaction for GLIDA, previously Fortum Charge & Drive India. Adani TotalEnergies E-mobility Ltd, Reliance BP Mobility Ltd, and JBM Group have previously signed non-disclosure agreements (NDAs) for the potential merger, according to a Mint story. According to the report, due diligence is still in progress, and the JBM Group has signed an exclusivity deal for GLIDA.

JBM Group Allured by Strong Network of GLIDA

As India pushes for green mobility, which depends on the growth of an efficient EV charging network, JBM Group is drawn to GLIDA's 850 charging stations spread over 29 cities and 25 highways in 17 states. With 1,500 EV charging stations, JBM Auto Ltd., the flagship company of the JBM Group, is one of the biggest producers of electric buses in India.

It is one of sixteen companies that have submitted bids for 10,900 electric buses under the PM E-Drive program, which aims to expedite the electrification of public transportation. Businesses are placing large bets on India's public EV charging infrastructure because approximately 60% of three-wheelers, 4.8% of vehicles, and 6% of two-wheelers sold in 2025 will be electric.

Players are motivated by the enormous market potential, since India wants electric cars to make up 30% of all car sales by 2030. The Federation of Indian Chambers of Commerce & Industry (Ficci)-EY report from September states that India's Charging Point Operators (CPOs) have created ambitious development plans with the goal of having more than 100,000 EV charging stations by FY27.

While working with real estate companies to gain access to critical locations for the deployment of charging infrastructure, the operators have established strategic alliances with B2B fleet players to guarantee utilisation rates. With several companies operating in both the AC (alternate current) and DC (direct current) charger solution categories, the industry is still fragmented, suggesting room for standardisation and consolidation.

Why Fortum is Exiting India?

The long-running conflict between Russia and Ukraine coincides with Fortum's departure from India, causing significant losses to its majority-owned Uniper, which was later sold to the German government at a six billion euro loss, as well as disruptions to the gas supply. Furthermore, Fortum's €5 billion worth of Russian plants were seized by the Russian Federation. According to several media reports, Fortum sold its renewable energy platform, Fortum India Pvt. Ltd. (FIPL), and the management firm that included carbon credits to Hexa Climate Solutions, financed by I Squared Capital and based in New York.

Additionally, AM Green acquired 50% of Fortum Oyj and Chempolis Oy's joint venture, Assam Bio Refinery Pvt. Ltd., as well as Fortum's share in Chempolis Oy, a biotechnology company based in Oulu. Fortum India has already sold 700 MW to Actis LLP, another 230 MW to Elite Alfred Berg and UK Climate Investments, and 185 MW to Petroliam Nasional Bhd, the state-run oil and gas business in Malaysia, or Gentari, a division of Petronas. There are over 26,300 public charging stations (EVPCS) for electric vehicles in India.

About INR 2,000 crore has been set aside under the INR 10,900-crore PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) project to establish 22,100 charging stations for electric automobiles, 48,400 for electric two-wheelers and three-wheelers, and 1,800 for electric trucks and buses. Range anxiety is still an issue despite our drive to strengthen EV infrastructure. In India, installing public charging stations is still fraught with difficulties.