Tube Investments Invests More Than 3 Million in Electric CV Startup
Tube Investments Clean Mobility, a wholly-owned subsidiary of Tube Investments, has signed an agreement to acquire a 65 per cent investment in IPLTech Electric, a startup that develops electric heavy commercial vehicles. The company will purchase the shares for USD 3.07 million and expects the acquisition to be finalised 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."
IPLTech Electric, based in Gurugram, generated revenue of USD 2.8 million and USD 1.6 million during fiscal years 2021 and 2022, respectively. The Rhino 5536, the company's first product, is designed to function on all types of roadways.
Tube Investments, the flagship firm of the Murugappa Group, is currently transitioning from a component supplier to a significantly greater role in the e-mobility market. It recently declared its intention to begin manufacturing electric three-wheelers and tractors. Tractors will be branded as Cellestial Egati and unveiled later in the year. On the other hand, three-wheelers will be marketed under the name Montra and are scheduled for release in late August or early September.
The manufacturers of bicycle brands such as BSA and Hercules have devised a three-pronged plan for the growth of the EV segment, with the existing businesses comprising the TI-1 vertical. TI-2 envisions a venture capital style of operation, while TI-3's approach is built on an acquisitions-based equity-type model. The TI-1 business will create the cash flows necessary for TI-2 and TI-3 initiatives.
Source: Autocar Professional