Tube Investments Clean Mobility, the wholly-owned subsidiary of Tube Investments has entered into a definitive agreement for the acquisition of a 65 percent stake in IPLTech Electric, a startup that manufactures electric heavy commercial vehicles. The company will buy the stake for Rs 246 crore and expects to complete the acquisition process by October 2022.
Arun Murugappan, Chairman, Tube Investment said, "The acquisition of lPL Tech Electric has expanded our footprint in the clean mobility space and gives us a first mover advantage in this segment. We have taken another important step to further our vision of improving quality of life through eco-friendly mobility solutions, and to drive our ESG goals."
Based out of Gurugram, IPLTech Electric reported a turnover of Rs 23 crore and Rs 13 crore during fiscal 2021 and fiscal 2022 respectively. The company's first offering, the Rhino 5536, has been designed to operate on all kinds of roads.
The development comes even as Tube Investments , the flagship company of Murugappa Group, is transforming itself from a component supplier to a much larger role in the e-mobility segment. It recently announced plans to enter into the manufacturing of electric three wheelers and tractors. While its three-wheeler offering will be branded as Montra and is slated for a launch by late August or September, tractors on other hand will be branded as Cellestial Egati, and will be unveiled later during the year.
The makers of bicycle brands like BSA and Hercules have apparently created a three-pronged strategy for the EV segment growth with the TI-1 vertical comprising of the existing businesses. TI-2 envisages a venture capital style of functioning and lastly the TI-3 vertical is where the strategy is based on an equity style model based on acquisitions. The TI-1 business will generate the cash flows required for investments in TI-2 and TI-3 categories.
Tube Investments to foray into e-three wheeler and e-tractors