Azad India Mobility leases a Bengaluru facility for electric bus production, targeting 1,500 units annually. A strategic move into India’s green public transport sector.
In a strategic move to capitalize on India’s push for green public transportation Azad India Mobility Limited has announced its formal entry into the electric bus manufacturing sector. The company’s board has approved a lease agreement for a manufacturing facility in Bengaluru marking a significant expansion of its operations.
The company, formerly known as Indian Bright Steel Co Limited, will lease land, plant and machinery from Azad Coach Builders Private Limited at a site on Mysore Road, Bengaluru. The facility spans 8,094 square meters and is designated as a government-approved industrial site for electric bus production.
Facility Details and Production Capacity
The newly leased plant is equipped for manufacturing bus body components, assembling both domestically produced and imported parts and carrying out all necessary activities to build fully functional electric buses. According to the company disclosure, the facility has an annual production capacity of up to 1,500 electric buses.
The five-year lease agreement is set to commence on October 1, 2025, with an option for extension by mutual agreement. Azad India Mobility will pay a monthly rent of ₹25.50 lakh, plus applicable GST, with a 5% annual escalation clause. The agreement grants the company uninterrupted access and the right to modify the infrastructure as needed for its manufacturing operations.
A Related Party Transaction on Arm’s Length Basis
The transaction has been classified as a related party transaction because Mr. Bupinder Singh Chadha and Mr. Chamjit Singh Chadha serve as common directors on the boards of both Azad India Mobility Limited and Azad Coach Builders Private Limited.
The company has assured stakeholders that the transaction is being conducted on an arm’s length basis meaning the terms are equivalent to those that would be negotiated between independent parties. This is a standard regulatory requirement to ensure fairness for all shareholders.
Strategic Positioning in the E-Mobility Market
This lease arrangement is a core part of Azad India Mobility’s strategy to establish a strong presence in India’s rapidly evolving electric mobility landscape. By securing a dedicated pre-approved manufacturing base the company gains immediate operational capability and legal certainty allowing it to focus on innovation and scaling up production.
The move positions the company to compete for contracts under central and state government electric bus adoption schemes, such as the FAME India initiative which are crucial drivers for the sector’s growth.
The board meeting where this was approved was held on September 26, 2025 and the disclosure was made in compliance with SEBI Listing Regulations underscoring the company’s commitment to regulatory transparency as it embarks on this new chapter.