TI Cycles of India (TII), part of the 121-year-old Murugappa Group has acquired 70 percent stake in Hyderabad-based electric vehicle start-up Cellestial E-Mobility for Rs 161 crore through a combination of primary and secondary purchase of shares.
In December 2021, TI Cycles of India (TII) had announced its entry into the electric vehicle market with its existing Montra brand and in the last-mile commute, last-mile delivery and personal mobility vehicle segments.
TII has now said that it will infuse initial capital to the extent of Rs 350 crore into the new subsidiary for clean mobility through a combination of equity, preference and debt instruments.
Cellestial is a start-up engaged inter alia in the design and manufacture of e-tractors. The electric tractors developed 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.
M.A.M Arunachalam, chairman, Murugappa 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 company’s efforts towards climate change and sustainability”.