In line with its strategy to explore new growth opportunities within clean mobility, Tube Investments of India (TII) announced on Monday that it has recently embarked on an electric 3-wheeler initiative.
A press release from the company said that TII is now proposing 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. About INR 350 crore capital will be infused into the new subsidiary through a combination of equity, preference and debt instruments, the company said.
The company is proposing to acquire a controlling stake of about 70% in the equity share capital of M/s. Cellestial E-Mobility Private Limited with an investment of INR 161 crore, through a combination of primary and secondary purchase of shares.
Cellestial is a start-up engaged in designing and manufacturing E-tractors that offer several advantages like a swappable battery and a lower total cost of ownership compared to current ICE tractors. Besides, these E-tractors will also result in lower CO2 emissions, promote green farming, and will take a step towards a circular economy, the company said.
M A M Arunachalam, Chairman, TII, 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”.