Tube Investments of India Limited, a Murugappa group company, has set up a wholly owned subsidiary to focus exclusively on clean mobility. The new arm will consolidate the electric three-wheeler venture and other electric vehicle-related businesses. The company will be infusing initial capital to the extent of Rs 350 crore into the new subsidiary for clean mobility.
The money will be infused into the new subsidiary through a combination of equity, preference and debt instruments. Tube Investments has been exploring new growth opportunities within clean mobility. In line with this strategy, it recently embarked on an electric three-wheeler initiative.
In continuation of its foray into clean mobility, the company, through its clean mobility subsidiary, is also planning to acquire a 70 percent equity stake in Cellestial E-Mobility Private Limited with an investment of Rs 161 crore. The acquisition will be through a combination of primary and secondary purchase of shares.
Cellestial is a start-up engaged, inter-alia, in the design and manufacture of e-tractors. The electric tractors developed by Cellestial offer several advantages like a swappable battery and a lower total cost of ownership compared to current IC tractors. Besides, these e-tractors will also result in lower CO2 emissions, promote green farming, and will take a step towards a circular economy.
MAM Arunachalam (known as Arun Murugappan), chairman of the company 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 company’s efforts towards climate change and sustainability.”