Tube Investments to form Subsidiary to Increase Focus on Clean Mobility

Himachal Pradesh Sets Sights on Becoming Green Energy State by March 2026

Murugappa group company Tube Investments of India (TII) will form a new 100% subsidiary which will consolidate its electric three-wheeler and other EV-related ventures.

Through this clean mobility subsidiary, Tube Investments of India (TII) will acquire around 70% controlling stake in Cellestial E-Mobility for an investment of Rs 161 crore. The acquisition would be through a combination of primary and secondary purchase of shares, the company said in a statement on Monday.

Tube Investments of India (TII) will be infusing initial capital to the extent of Rs 350 crore into the new subsidiary through a combination of equity, preference and debt instruments.

Cellestial is a startup engaged in the design and manufacture of E-tractors. “The electric tractors developed by Cellestial offer several advantages like a swappable battery and lower total cost of ownership compared to current IC tractors,” said the statement.

M A M Arunachalam (known as Arun Murugappan), chairman of 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.”

This is the second startup investment by TII this month. Last week, the company invested seed round funds of Rs 3.5 crore at IIT Madras-incubated company Aerostrovilos Energy. The latter has been working on developing Micro Gas Turbines (MGT) with the National Centre for Combustion Research (NCCR) at IIT Madras. It is building an MGT-based powertrain solution for heavy-duty trucks and power generation at reduced costs.

Rohit Grover, CEO of Aerostrovilos Energy, said, ‘’Air pollution levels are soaring across the world, and both corporations and governments are actively looking for clean technology solutions. Gas turbines have the cleanest emission levels void of any soot or particulate matter.”