TI Cycles of India (TII) part of 121-year old Murugappa group acquires 70% stake in Hyderabad-based electric vehicles start-up, Cellestial E-Mobility.
Tube Investments of India (TII),a part of the Murugappa group announced on Monday that they will form a subsidiary with initial capital worth Rs. 350 crore. This money will be available through a combination of equity, preference, and debt instruments.
TII has been looking for further investment opportunities in the clean mobility area. Now as part of its EV push, the company has acquired 70% controlling stake in the equity share capital of Hyderabad-based company, Cellestial E-mobility with an investment of Rs. 161 crore, (both primary and secondary shares). They have previously ventured into the segment with its existing Montra brand.
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Cellestial E-Mobility is the manufactures of Indias first electric tractors, 27 HP, 35 HP, and 55 HP. All three tractors come with swappable battery technology and have a lower cost of ownership compared to IC tractors.
M A M Arunachalam, the chairman of TII and Murugappan Group said, The formation of a separate subsidiary and acquisition of a controlling stake in Cellestial will enable the company to bring required focus to the emerging growth opportunities in electric vehicles. These new EV products along with the existing product portfolio of bicycles and e-bicycles will further strengthen the companys efforts towards climate change and sustainability .
The acquisition will be complete before March 15, 2022. This proposed investment in Cellestial E-Mobility will be in line with the companys intent to broad-base its product portfolio that will reduce its dependence on revenue streams.
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TII currently has six new business platforms, and each one of them has its own multiple divisions. The business is spread across industries like engineering, metal-formed products, mobility (cycles and the proposed Cellestial investment). The company wants to insulate itself from the cyclicality of the auto-component-related business and further expand into 10 business platforms.
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