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OREL Charge Business Plan

Phased EV charging infrastructure integrated with the OREL ecosystem. Conservative rollout validated by market demand before scaling to 5 stations island-wide.

2+3
Phase 1 + Year 2
LKR 8M
Total Investment
Level 2
Charger Type
18-22 Mo
Break-even

1. Strategic Context

OREL Charge is the infrastructure anchor of the ecosystem. While EV charging alone has longer payback periods, the real value comes from:

  • Driving vending machine sales during charging
  • Increasing OREL Tap transaction volume
  • Building brand presence at premium locations
  • Capturing early-mover advantage in EV infrastructure
  • Creating ecosystem stickiness
  • Long-term infrastructure asset value

Important: EV adoption in Sri Lanka is still nascent. This is a strategic infrastructure investment with longer payback periods. The primary driver is ecosystem synergy, not standalone charging revenue.

2. Market Analysis

Sri Lanka EV Landscape (2024-2026)

Metric 2024 2025 (Est) 2026 (Est)
Registered EVs ~5,000 ~12,000 ~25,000
Public Charging Points ~100 ~250 ~500
Avg Daily Charging Demand Low Growing Moderate

Target Demographics

3. Phased Rollout Strategy

Phase 1 Locations (Year 1 - Months 1-6)

Station 1: Makumbura

Location: Makumbura Multimodal Centre, Kottawa

  • Major transportation hub
  • High daily footfall (10,000+)
  • Express highway access (Southern Expressway)
  • Space for 2 charging bays + vending machine
  • Government partnership potential

Station 2: Kadawatha

Location: Kadawatha Town Center / Transport Hub

  • Major bus/rail interchange
  • Heavy commuter traffic (8,000+ daily)
  • Strategic location between Colombo-Gampaha
  • Growing suburban EV adoption
  • Co-located with vending for commuter sales

Phase 1 Rationale: Starting with 2 strategically placed stations allows us to validate demand, refine operations, and gather data before committing additional capital. Makumbura + Kadawatha cover key north-south commuter routes and transportation hubs.

📊 Phased Profit Growth Visual

LKR 8M LKR 6M LKR 4M LKR 2M LKR 0
-3.2M
-4.8M
+1.05M
+6.99M
Phase 1 Invest
Months 1-6
Year 1 Profit
2 Stations
Year 2 Invest
+3 Stations
Year 2 Profit
5 Stations

Break-even: ~22 months • Total Investment: LKR 8M • 2-Year Cumulative Profit: LKR 8.04M

Year 2 Expansion Locations (Months 12-18)

Based on Phase 1 performance, expand to 3 additional premium locations:

Station 3: Galle

  • Tourist hub
  • Southern Province capital
  • Expressway terminal
  • Hotel partnerships

Station 4: Colombo

  • Commercial district
  • High EV density
  • Premium pricing power
  • Corporate fleet access

Station 5: Kandy

  • Central Province hub
  • Tourist destination
  • Hill country coverage
  • Government vehicle demand

4. Technical Specifications

Specification Phase 1 (Level 2) Future (DC Fast)
Power Output 7.4kW - 22kW 50kW+
Charging Speed 25-70 miles/hour 150+ miles/hour
Typical Session 1-3 hours 20-40 minutes
Installation Cost LKR 800K-1.2M LKR 8M-15M+
Power Requirements 240V single/three-phase 480V three-phase

Why Level 2 for Phase 1

Level 2 chargers are ideal for Sri Lanka's current EV market:

  • Lower capital investment (80% less than DC fast)
  • Simpler installation (standard 3-phase power)
  • Longer dwell time = more vending sales
  • Suitable for current low EV density

5. Cost Structure

Per Station Investment

Component Cost (LKR) Notes
Level 2 Charger (22kW, dual port) 450,000 Commercial-grade, weatherproof
Installation & Electrical Work 350,000 3-phase power, conduit, connection
Site Preparation & Signage 180,000 Concrete pad, markings, lighting
Payment Terminal Integration 80,000 OREL Tap integration, card reader
Vending Machine (co-located) 850,000 From OREL Vending inventory
Software & Connectivity 60,000 IoT module, cloud platform
Permits & Licenses 90,000 CEB approvals, municipal permits
Contingency (5%) 80,000 Unexpected costs buffer
Total Per Station 1,600,000

Phased Investment Schedule

Phase Stations Investment (LKR) Timing
Phase 1 2 (Makumbura, Kadawatha) 3,200,000 Months 1-6
Year 2 Expansion 3 (Galle, Colombo, Kandy) 4,800,000 Months 12-18
Total 2-Year Investment 8,000,000 -

Monthly Operating Costs (Per Station)

Item Cost (LKR)
Location Rent/License 30,000
Electricity (base) 15,000
Maintenance Reserve 10,000
Insurance 5,000
Fixed Monthly Cost 60,000

6. Revenue Model

Charging Revenue

Per Station Monthly Projection (Conservative)

Charging sessions per day 4
Average session (kWh) 15 kWh
Charging price per kWh LKR 80
Monthly charging revenue LKR 144,000
Electricity cost (~LKR 35/kWh) -LKR 63,000
Operating costs -LKR 60,000
Net Charging Profit LKR 21,000

Ecosystem Synergy Revenue

The real value comes from cross-selling. During a 1-2 hour charging session:

Vending sales per charging customer (50% conversion) LKR 200
Additional vending revenue (60 sessions/month) LKR 12,000
Vending profit margin (45%) LKR 5,400
Total Monthly Profit Per Station LKR 26,400

7. 2-Year Financial Projection

Year 1: Phase 1 (2 Stations)

Metric Q1-Q2 Q3 Q4 Year 1 Total
Active Stations 1 (ramp-up) 2 2 2 avg
Sessions/Day/Station 3 5 6 5 avg
Charging Revenue 0.54M 1.44M 1.73M 3.71M
Vending Revenue (synergy) 0.13M 0.29M 0.35M 0.77M
Total Revenue 0.67M 1.73M 2.08M 4.48M
Electricity Costs -0.24M -0.63M -0.76M -1.63M
Operating Costs -0.36M -0.72M -0.72M -1.80M
Year 1 Net Profit +0.07M +0.38M +0.60M +1.05M

Year 2: Expanded Network (5 Stations)

Metric Q1 Q2-Q3 Q4 Year 2 Total
Active Stations 2 4 (expanding) 5 4 avg
Sessions/Day/Station 7 8 9 8 avg
Charging Revenue 2.02M 7.68M 5.18M 14.88M
Vending Revenue (synergy) 0.40M 1.54M 1.04M 2.98M
Total Revenue 2.42M 9.22M 6.22M 17.86M
Electricity Costs -0.89M -3.38M -2.28M -6.55M
Operating Costs -0.72M -1.80M -1.80M -4.32M
Year 2 Net Profit +0.81M +4.04M +2.14M +6.99M

📊 Monthly Cashflow Visualization (Year 1 - Phase 1)

Track the initial 2-station deployment cashflow showing construction investment and revenue ramp-up:

+1.5M +1M +500K 0 -500K -1M -1.5M -2M -2.5M -3M -3.5M
-2.15M
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Construction Investment
Operating Revenue
Cumulative Position
Months 1-3 (Build)
-3.1M
2 stations constructed
Months 4-12 (Ops)
+950K
Gradual revenue growth
Year 1 End
-2.15M
Cumulative (continues to Y2)

💡 Phased Strategy: Year 1 focuses on proving the model with 2 stations. Monthly cashflow turns positive from Month 5, building operational profit of LKR 1.05M by year-end. Year 2 expansion (3 more stations) accelerates to full break-even by Month 22.

Break-even Analysis

Investment & Returns

Phase 1 Investment (2 stations) LKR 3,200,000
Year 1 Net Profit LKR 1,050,000
Year 2 Additional Investment (3 stations) LKR 4,800,000
Year 2 Net Profit LKR 6,990,000
Total Investment (2 years) LKR 8,000,000
Cumulative Profit (2 years) LKR 8,040,000
Net Position End Year 2 +LKR 40,000
Break-even Timeline ~22 months

Conservative Projections: These numbers assume conservative session volumes (5-8 per day). Premium locations in Colombo and tourist areas (Galle, Kandy) may significantly exceed these estimates, accelerating break-even.

8. Risk Factors

Risk Probability Impact Mitigation
Slow EV adoption Medium High Vending synergy provides fallback revenue; level 2 has lower sunk costs
Electricity price increases Medium Medium Pass through to charging prices; solar integration (Phase 2)
Competition Low Medium First-mover advantage; ecosystem integration; prime locations
Technical failures Low Medium Local manufacturing enables quick repairs; maintenance contracts
Location issues Low High Thorough due diligence; long-term lease agreements

9. Future Roadmap

Year 3-4: Regional Expansion

Phase 3 Targets

  • Expand to 12 total stations across all provinces
  • Introduce DC Fast Charging (50kW+) at 3-4 high-traffic locations
  • Solar panel integration for cost reduction and sustainability branding
  • Fleet partnerships with taxi and delivery services (guaranteed volumes)
  • Highway corridor coverage (Colombo-Kandy, Colombo-Galle)

Year 5+: Market Leadership

Long-term Vision

  • National network of 30+ charging stations (island-wide coverage)
  • Battery swapping stations for commercial fleets
  • Grid services and energy storage integration (revenue from CEB)
  • Franchise model: Sell charging infrastructure to partners using OREL platform
  • Regional expansion: Maldives, Bangladesh pilot stations

Ecosystem Amplification Effect

As OREL Charge scales, the compound value increases exponentially:

  • Vending: 5 charging stations = 5 guaranteed high-dwell-time vending locations
  • OREL Tap: EV owners are tech-savvy early adopters perfect for payment app
  • Brand: Premium charging locations establish OREL as innovative market leader
  • Data: EV charging patterns inform optimal vending product mix
  • Partnerships: Leverage stations to attract corporate/government fleet deals

10. Key Takeaways

💰 Investment Summary

Phase 1 Investment (2 stations, Year 1) LKR 3,200,000
Year 1 Net Profit LKR 1,050,000
Year 2 Additional Investment (3 stations) LKR 4,800,000
Year 2 Net Profit LKR 6,990,000
Total 2-Year Investment LKR 8,000,000
Cumulative 2-Year Profit LKR 8,040,000
Net Position (End Year 2) +LKR 40,000
Break-even Timeline 22 Months

Strategic Positioning

Why OREL Charge is Critical Despite Lower Margins

  • Ecosystem Anchor: Charging stations create premium brand presence at strategic locations
  • Vending Synergy: 1-2 hour charging sessions = captive audience for vending purchases
  • First-Mover Advantage: Secure best locations before EV market explodes
  • Payment Adoption: Tech-savvy EV owners are ideal OREL Tap early adopters
  • Infrastructure Asset: Charging stations appreciate in value as EV adoption accelerates
  • Differentiation: Competitors can copy vending, but integrated charging + vending + payment is unique

Success Metrics

Phase 1 Go/No-Go Decision (Month 9):

  • Avg 5+ charging sessions/day/station achieved
  • 60%+ of EV chargers also purchase from vending machine
  • 30%+ OREL Tap adoption among charging customers
  • Zero major technical/operational failures

If metrics met: Proceed with Year 2 expansion (3 additional stations)

If metrics not met: Optimize existing stations, delay expansion, or pivot strategy