Murugappa Group’s engineering firm Tube Investments of India has announced that its clean mobility arm TI Clean Mobility Private Ltd (TICMPL) has picked up a majority stake in Gurgaon-headquartered IPL Tech Electric Private Ltd, a three-year-old electric heavy commercial vehicle start-up, for a total consideration of ₹246 crore.
The acquisition by TICMPL marks its entry into a new segment, the commercial vehicle market. While the company is in the process of launching its electric three-wheeler, it has also made a foray into the electric tractor segment through the acquisition of a majority stake in Cellestial E-Mobility, a manufacturer of electric tractors, in January.
In line with its vision to pursue clean mobility, TICMPL has executed definitive agreements to acquire about 65 per cent equity stake in an electric heavy commercial vehicle company, IPL Tech Electric Pvt Ltd (IPLT). The acquisition would be through a combination of primary and secondary purchases of shares for a total sum of about ₹246 crore, according to a statement.
Expanding footprint
“The acquisition of IPL Tech Electric Private Ltd 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,” said Arun Murugappan, Chairman of Tube Investments of India.
IPL Tech Electric Private Ltd claims to be the first Indian company to manufacture electric heavy commercial vehicles. With a range of 185 km, its first electric truck Rhino 5536 was launched in 2019 and has been designed to run-on all-weather condition roads. In FY22, the company posted revenue of ₹13 crore (₹23 crore in FY21).
The acquisition is expected to be completed on or before October 31, 2022, subject to the satisfactory completion of the conditions as contained in the agreements executed between the parties.
Meanwhile, the board of Tube Investments has approved a further investment of up to ₹150 crore in the equity share capital of TICMPL and the provision of lnter Corporate Deposit of an amount not exceeding ₹100 crore to TICMPL.