India

Tube Investments of India (TII), part
of the Murugappa group, announced its plans to form a subsidiary to carry on
the proposed electric three-wheeler venture and other EV-related projects.

The company will be
infusing initial capital to the tune of Rs 3.5 billion into the new subsidiary
for clean mobility, through a combination of equity, preference and debt
instruments.

TII, which has been
exploring new growth opportunities within clean mobility, had recently embarked
on an electric 3-wheeler initiative. As part of its EV push, the company,
through its clean mobility subsidiary, is proposing to acquire a controlling
stake of about 70% in the equity share capital of Cellestial E-Mobility at an
investment of Rs 1.61 billion, through a combination of primary and secondary
purchase of shares.

Cellestial is a
start-up engaged in the design and manufacture of e-tractors. The proposed
investment in Cellestial is in line with the company’s intent to broad base its
product and business portfolio to reduce its dependence on revenue streams,
which are cyclical in nature. The acquisition would be completed before March
15, 2022.

TII had recently revealed that its long-term objective was to
build six new business platforms, each of which can have multiple divisions,
focused on its line of business. The company currently has four business
platforms such as engineering, metal formed products, mobility (cycles and the
proposed three-wheeler EV) and other businesses. In a bid to insulate the
company from the cyclicality of the auto-component related business, and to
expand the company further, TII has chalked out strategies to grow them to ten
platforms, over a period of time.

 Image source: Google images

Source:
Express Drives

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