As part of its expansion into the e-mobility space, Murugappa group company Tube Investments of India (TII) has acquired the entire shareholding of Cellestial E-Mobility Pvt Ltd, a Hyderabad-based startup engaged in the design and manufacture of electric tractors.
This was done through TI Clean Mobility (TICMPL), a wholly-owned subsidiary of Tube Investments. TICMPL was already holding 69.96 per cent of Cellestial. On Friday, the company, in line with its growth plan in the electric vehicle space, executed a share purchase agreement with the founders of Cellestial to acquire the balance 30.04 per cent stake in Cellestial for an aggregate consideration of Rs 50.90 crore.
According to TII, the maker of iconic bicycle brands such as BSA and Hercules, Cellestial offers several advantages like a swappable battery, regenerative brakes, power inversion, charging from residential AC outlet, fast charging and lower total cost of ownership compared to IC tractors. Besides, these e-tractors will also result in lower carbon dioxide emissions, promote green farming, and will take a step towards a circular economy. Cellestial had unveiled the country’s first electric tractor in March 2020, claiming to be having the capability to cover 75 km on a single charge.
Commenting on the acquisition, M.A.M Arunachalam (known as Arun Murugappan), Chairman of TICMPL said, “The acquisition of the remaining stake in Cellestial will help TICMPL to consolidate its holding in the electric tractors business and maximize value to the company. We thank the founders for their contribution.”
“Cellestial is well-positioned to achieve its full potential and the acquisition of balance shareholding in Cellestial by TICMPL will accelerate the same. We wish TICMPL and Cellestial all the very best its endeavor to reach greater heights,” said Siddhartha Durairajan.
Discussion about this post