Tube Investments invests Rs 246 crore in electric in heavy CV

The spate of acquisition for Tube Investment continues. Tube Investments Clean Mobility, one of its wholly owned subsidiary annonuced entering  into definitive agreement for acquisition of  65  percent in IPLTech Electric- a  startup engaged in manufacturing of electric heavy commercial vehicles for Rs 246 crore. The acquisition is expected to be completed by October this year. 

Based out of Gurugram, IPLTech Electric reported a turnover of Rs 23 crore and Rs 13 crore during FY21 and FY22 respectively. The company’s first offering is ‘RHINO 5536’, which it claims is  designed to run-on all-weather condition roads.

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 impoftant step to further our vision of improving quality of life through eco-friendly mobility solutions and to drive our ESG goals.”

The development comes even as Tube Investments, the flagship company of  Murugappa Group, has made its intentions clearn of moving on from being just a component supplier to the auto industry and looking to play a much larger role in the e-mobility segment. It recently announced  getting into manufacturing of electric three wheeler and tractors. While the three-wheeler brand identified as Montra is expected to get launched in both passenger as well as cargo categories by late August or September, tractors on other hand with the brand name Cellestial Egati is likely to 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 is likely to act as providers of cash flows for investment in TI-2 and TI-3 categories.

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