Tube Investments of India Limited announced the acquisition of 70% stake in Cellestial E-Mobility Private Limited (Cellestial) for Rs 161 crores. Cellestial is a start-up company engaged in design and manufacture of electric tractors, aviation ground support electric equipment and other electric machinery.
According to the company’s exchange filing, “The proposed investment is in line with the Company’s intent to broad base its product and business portfolio with a view to reduce its dependence on revenue streams, which are cyclical in nature.”
Also, the company announced 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.
Commenting on the development, 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.”
Tube Investments of India is a Murugappa Group company that specializes in engineering, bicycles, metal formed products, and chains.
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