Murugappa Group Acquires Cellestial E-Mobility An Electric Tractor Start-up

Murugappa Group paid Rs 50.90 crore for the remaining 30.04% stake. Previously, the company owned 69.96% of the electric tractor start-up Cellestial E-Mobility. The Murugappa Groups of India (TII) has now acquired the entire shareholding of Cellestial E-Mobility Pvt Ltd through TI Cellestial E-Mobility. The eclectic tractor was developed and designed by a new company.

Tube Investments of India (TII) subsidiary TI Clean Mobility (TICMPL) has paid INR 50.90 crore for the remaining 30% stake held by the founders of electric tractor manufacturer Cellestial E-Mobility.

TII acquired a 70% stake in Cellestial in January of last year for INR 161 Cr through a combination of primary and secondary share purchases.

TII has now fully acquired Cellestial with the latest 30% stake acquisition. According to reports, following this transaction, the EV startup will become a wholly-owned subsidiary of TICMPL.

The Hyderabad-based startup, founded in 2019 by Siddhartha Durairajan and Syed Mubasheer, designs and manufactures three models of electric tractors-27HP, 35HP, and 55HP tractor-for agricultural, horticulture, aviation, and logistics industries.

In an interview, TII stated that it would invest Rs 350 crore in the new auxiliary for clean mobility using a combination of value, inclination, and debt instruments.

Cellestial's electric tractors, which have a swappable battery, are said to have a lower total cost of ownership than current IC tractors.

In response to the acquisition, TICMPL Chairman M.A.M Arunachalam stated, "The acquisition of the remaining Cellestial stake will assist TICMPL in consolidating its position in the electric tractor business and maximizing value for the company. We appreciate the founders' contributions."

"Cellestial is well positioned to achieve its full potential," said Cellestial co-founders Siddhartha Durairajan and Syed Mubasheer Ali. "TICMPL's acquisition of the balance shareholding in Cellestial will accelerate the same."

TI Cycles of India (TII) announced its entry into the electric vehicle industry's last-mile commuting, last-mile delivery, and personal mobility vehicle segments in December 2021 under its current Montra brand.

The Chennai-based Murugappa Group, which was founded in 1900, is one of India's leading business conglomerates, with 29 businesses. The Group is a market leader in several product categories, including abrasives, technical ceramics, electro minerals, auto components and systems, power conversion equipment, and transformers.

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