YOUNG ACHIEVER

“The biggest encouragement from my family was that they never discouraged me, and once I came to a point where I thought I knew, they pushed me to learn more and understand the realities of running a business,” said Raj Mehta, founder of Raj Electromotives Pvt. Ltd and Greta Electric Scooters.

The Ahmedabad-based youngster has become the world’s youngest founder of an automobile company, and his family background might have contributed to testing his entrepreneurial spirit. He hails from a business family with ventures into jewelry, secured finance, and bullion trading of gold/silver bars. Not surprisingly, he gained the fundamentals of financial management and the importance of money in finance from his father and grandfather.

While he founded his company in 2015 at the tender age of 14, he has also been astute in completing his graduation from SSIU - Swarnim Startup & Innovation University, Gujarat, and holds a degree in Bachelors of Engineering – BE, Automobile. The idea that germinated in 2013 saw incredible transitions in 2019. The self-taught entrepreneur is raring to contribute to the global electric revolution, especially in segments currently dependent on IC (internal combustion) engines. Corporate Citizen shares a slice of Raj’s innovative journey.

Corporate Citizen: What inspired the 13-year-old in you to innovate?

Raj Mehta: I was compelled as a child to ride my bicycle for considerable kilometers running errands which were tiring enough. Being lazy, I wanted a way out, so I set out to find a solution. As one thing led to another, I came across the idea of building an electric engine for my bicycle. Even in those days, I was aware of the significance of developing an environmentally sustainable solution. Once the idea took root, I couldn’t get the notion out of my head and was soon obsessed with converting my imaginative thought processes into a reality.

CC: Did you have prior knowledge in the sector?

I self-taught myself, conducted multiple research, and took help from my teachers or anyone who would guide me, and it became a way of life for me. When I turned 12 years old, I managed to create a workable model of an e-kit that converted a bicycle into an e-cycle. The path had ample challenges, from the research and experimentation stages to finally experiencing success. Besides, I also gained the convenience of riding a powered bicycle. I knew then that this was my future calling.

CC: Did you doubt yourself at all?

I never envisaged starting a company after successfully constructing a powered, electrically- run bicycle. However, unexpectedly, a media interaction with one of the leading news agencies went viral on social media. I began receiving demands for e-kits, and lo and behold, I found myself at the forefront of an innovative business. I was 14 years old when I founded Raj Electromotives, making me the youngest entrepreneur in the automotive industry.

CC: Did you get support from your family?

Our family has run multiple businesses for over 150 years and ensured that I did my learning diligently and gained ample knowledge on resources to create my prototype. They helped me understand the nuances of financing for starting my venture at the later stages. It was important to understand and respect values, and the education they instilled in me during my journey so far has shaped me into the person I am today.

CC: As a teenager, how did you handle your initial success?

Our family has an agricultural and farming lineage which kept me grounded. From a very young age, I had the good fortune of accompanying my father, Shri Shaileshbhai Bipinchandra Mehta, and grandfather, Late Shri Bipinchandra Badamilal Mehta, to their respective business meetings. I am quiet and would pay good attention to the learnings from these sessions. Their patient answers to my unending questions as we travelled back home from the meetings are lessons, I treasure even today. My parents also taught me social responsibility through their active contribution to social programs within our community.

CC: As a teenager, how did you build your seed capital?

The seed capital for my invention comprised my hard-earned and pocket money savings of around Rs 50,000. Despite the seemingly substantial amount, I faced a funds crunch at the tail end of my project. I reached out to my grandfather for money, who, instead of just lending me the amount, proved to be a true businessman and asked me for collateral. At that stage, the collateral meant that I had the right to spend the Rs 8,000 loan money as I chose – but with complete project transparency and accountability of the incurred expenses. My first invention was the electric conversion kit for my bicycle. I borrowed from my father to establish my first company, Raj Electromotives, in 2015.

CC: What kept you motivated?

Fortunately, my invention evoked a response akin to an adrenalin rush at the initial stages. The user-related feedback triggered me to think more and accomplish something beyond the realms. We began with bicycle conversion kits and moved towards options for commercial and passenger rickshaws, tricycles for the specially- abled, and finally, bikes. I realized there was always something more to do, a new need, or gaps to address. It felt like being on a rollercoaster ride you did not want to get off. The next step was an impulse to take a leap and see if there was a scope to contribute to the changing dynamics of transportation. The thought led to the establishment of Greta Electric Scooters in 2019 with the vision to build an affordable commuting mode for all. I designed Greta as an affordable e-scooter with state-of-the-art features.

"My learning curve turned upside down as I assimilated a crucial part of my knowledge through practical education. I did return to my books to gain clarity on concepts. I believe our educational curriculum should complement the theoretical aspects with practical learning"

Raj Mehta with Greta Electric Scooters Team

CC: How did you begin your research on motors and components?

The Electric Conversion Kit so occupied my mind that I soon obsessed with it. As an 8th grader, I could not find any engineering-related resources in the school curriculum, and I ran from pillar to post, seeking answers. I reached out to my teachers. Despite having limited practical experience in my endeavour, I am grateful to them. They shared their theoretical knowledge on the topics supporting gear ratios, water and energy conversion physics, and the like. I, too, researched and procured components that led to an eco-friendly solution.

CC: How difficult is it for a teenager to procure an import-export license for sourcing auto parts?

It wasn’t easy because getting the license in my name at that age was a challenge. I applied and was rejected 19 times before my import-export license was finally approved.

CC: How did you validate your prototype?

The International Centre for the Assessment of Higher Order Thinking (ICAT) validated the first prototype in late 2019.

CC: What were some of your biggest hurdles as a teenage entrepreneur?

Like every other start-up, I, too, was loaded with challenges, but, given my age, I believe my hurdles were a bit different. Initially, I intended to merely fix a solution that took the load off manually peddling long distances, and I did not set out to establish an enterprise. But, once I decided to commercialize my idea, I faced the same challenges as most start-ups, including idea and validation, funding, market knowledge, defining the USP, people management, procurement, establishing a supply chain, and understanding the fundamentals of financial management and operations.

CC: What was your experience with the project stakeholders?

Being young, I had to work hard, field many questions, and face harsh measures to drive the learning home. For the legal compliances, I had to collaborate with elders. For a budding entrepreneur, several untapped chapters in my education had to be quickly filled in and completed during the business’s execution.

CC: How do you sustain your thought process for growth?

It is important to take the leap as fine-tuning can happen along the journey which we do every day. I believe that many people fail because they fall into the trap of perfecting their models and forget to take that first leap.

CC: Did you have relevant mentors?

My teachers guided me to understand the basic science concepts, but I was on my own and had to figure out everything I needed to put together a conversion kit.

CC: How did you keep track of your learning?

When I was 18 years old, I observed that China already had an advanced electric vehicle (EV) market segment, and I felt it necessary to visit the country and learn about the sector. I took the China trip to study the e-vehicles environment.

CC: How do you differentiate your product portfolio?

Raj Electromotives manufactures conversion kits for pedal cycles, tricycles for differently-abled people, and bikes, which is technically India’s first retrofit kit that converts a petrol bike that is electrically powered. We also have convertor kits for pedal rickshaws for cargo and passenger use. Raj Electromotives and Greta Electric Scooters are both start-ups. Greta Electric Scooters is a subsidiary of Raj Electromotives Pvt. Ltd. and primarily manufactures electric two-wheelers. We have launched 4 models in this market segment.

CC: How many manufacturing plants do you have across India?

Greta Electric Scooters has 2 manufacturing facilities in Ahmedabad and Faridabad. Our primary manufacturing base is in Ahmedabad, and we have recently established a unit in Faridabad for easy accessibility to the northern markets. The Faridabad facility has an annual manufacturing capacity of 30,000 units across all models of Greta electric scooters. The idea is to facilitate our dealership reach in the region within 15-20 days with a lower transportation carbon footprint.

CC: What were your learnings in developing the e-scooter prototype?

I visited China and other Asian Countries to learn about EVs and their machinations. Over the 100+ days in China, I enhanced my understanding of EVs, including the components needed, their importance, and the wherewithal to assemble them for developing a workable e-vehicle.

CC: Are your e-vehicle components indigenously made in India?

We have aimed to maximize local sourcing, but there are still several import-dependent components, and we have imported them.

"It is important to take the leap as fine-tuning can happen along the journey which we do every day. I believe that many people fail because they fall into the trap of perfecting their models and forget to take that first leap"

Raj Mehta riding a Greta Electric Scooter

CC: What about your distribution channels in India and abroad, if any?

Ours is a dealer-distributor model, and we plan to use the same model internationally. We have a presence in Nepal internationally, and our e-scooters are under road test in select European markets. We currently manage an EV showroom at the highest altitude in Leh, Ladakh, and we intend to have 50+ touchpoints nationwide by FY22.

CC: Who are your market competitors in India and abroad?

We are yet to venture out full-scale internationally and still testing waters as EV has seen many players entering the fray lately. Every player in the market is a competitor at some level, but I am confident that in the low-speed segment, we are the leaders. The on-road competition is expected to be intense when we launch our highspeed vehicles. We hope to cross that bridge once we get there.

CC: What is the price strategy of your scooters, and who are your buyers?

Our e-scooters range between Rs 60,000 to Rs 95,000 and has been targeted as a perfect family vehicle across all generations, as one does not need a driver’s license or vehicle registration to own one. The scooter provides flexibility from a standard power point and is designed for city use.

CC: What are your export markets?

Currently, we export conversion kits to 19+ countries, and our e-scooter is available only in Nepal.

CC: Have you been able to break even?

Given this is a sunrise industry, we have had our share of success and glory. Despite the COVID slowdown, we have posted 3X growth, but given the market potential, we still have a long way to go. My vision is to be present in the remotest of areas nationwide.

CC: What was the impact of Covid on the e-vehicle sector?

Going by the early pandemic responses globally, people have been positive towards EV adoption triggered by the environmental consciousness for a clean and green world. The key risks faced were disruptions in supply chains, especially as China is the largest component supplier to the global EV manufacturing ecosystem. Disrupted supply chains due to lockdowns had a short-term negative impact on manufacturers worldwide which heightened trade tensions impacting medium-to long-term cost reductions and delayed EV adoptions.

CC: Did you face any difficulties?

In the last two years, the increased focus on EVs from the government and consumers has spiralled the demand. The EV sector is heavily dependent on imports, and the import restrictions during the pandemic phases challenged us too. We have peaked out on our production capacities and are exploring expansion opportunities to meet the growing demand. However, 2021 was a growth year, and we could scale up our business three times. It is an exciting space to be in right now, and we are enjoying the ride.

CC: How difficult is it to gain the e-green status and other valid licenses and approvals?

The process is smooth if you abide by regulations. Yes, there are challenges, but an entrepreneur is the one who can convert the challenges into opportunities.

CC: What are your future plans?

The primary goal is to bring an electric revolution in other segments led by internal combustion (IC) engines. The other goal is to have a distribution network worldwide.

CC: How about technology consolidations?

I see myself at the helm of the transition that the transportation industry is currently going through. Research and Development (R&D) is a way of life for us, and it would be difficult to predict where we are headed right now.

CC: Is a degree important at all? Please share your personal opinion based on your experience and achievements, including overcoming challenges.

A degree is essential as it helps get the basics. My learning curve turned upside down as I assimilated a crucial part of my knowledge through practical education. I did return to my books to gain clarity on concepts. I believe our educational curriculum should complement the theoretical aspects with practical learning. Educational institutes should consider including entrepreneurship in their curriculum with basic elements such as drafting an offer letter/appointment letter and understanding HR terminology such as probation and gratuity to help students confidently venture out in the professional world. The overall academia-cum-entrepreneurial ignition can help develop job makers rather than mere job seekers, even at the school levels.

Hungry for Success

"The path had ample challenges, from the research and experimentation stages to finally experiencing success. Besides, I also gained the convenience of riding a powered bicycle. I knew then that this was my future calling"