Tube Investments of India Limited to increase focus on clean mobility
Formation of new subsidiary for Clean Mobility business
cityairnews
Jan 24, 2022 02:34
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Tube Investments of India Ltd (“The Company”) has been exploring new growth opportunities within clean mobility. In line with this strategy, the Company has recently embarked on an electric 3-wheeler initiative. The Company is now proposing to form a new 100% subsidiary to focus on clean mobility. This new subsidiary will consolidate the electric 3W venture and other EV-related ventures.
The Company will be infusing initial capital to the extent of Rs. 350 Crores into the new subsidiary for Clean Mobility through a combination of equity, preference and debt instruments.
Acquisition of 70% stake in Cellestial E-Mobility Private Limited
In continuation of its foray into clean mobility, the Company, through its clean mobility subsidiary, is proposing to acquire a controlling stake of about 70% in the equity share capital of M/s. Cellestial E-Mobility Private Limited (“Cellestial”) with an investment of Rs.161 Crores, 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 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.
Talking about these initiatives, Mr. M.A.M 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”.
