Murugappa Group Set to Launch Their Cutting Edge 3 e-Tractors by March 2024

Tube Investments of India (TII), a significant player in the Murugappa Group, is gearing up for a groundbreaking entry into the electric vehicle (EV) arena, eyeing substantial growth opportunities. With an investment plan of around Rs 3,000 crore, TII aims to revolutionize the green mobility space by introducing three distinct segments of electric vehicles: three-wheelers, tractors, and Medium & Heavy Commercial Vehicles (M&HCV).

TII's foray into the electric mobility market encompasses various areas, including electric three-wheelers under the Montra Electric brand, electric tractors, and M&HCVs, where significant economic benefits are envisioned for customers.

Tube Investments plans to roll out three different variants of electric tractors, catering to diverse user segments. Work has already commenced on the production facilities for these tractors at Apex Park in Chennai, Tamil Nadu. The company's acquisition of Celestial E-Mobility earlier this year has equipped it with the necessary technology for e-tractors.

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In the commercial vehicle domain, TII is set to manufacture a 55-tonne electric truck, primarily targeting short haulage operations in sectors such as iron & steel, cement, and construction. Manufacturing facilities are underway at Manesar, Haryana, signalling the company's commitment to embracing electric mobility in various sectors.

According to Mukesh Ahuja, Managing Director of Tube Investments of India, the company's primary focus lies within the electric vehicle segment due to its immense growth potential. The move signifies a strategic shift towards sustainable transportation solutions. He emphasized the creation of separate distribution networks tailored to EV platforms, ensuring efficient market penetration and customer outreach.

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TII's investment in its electric mobility business stands at Rs 250 crore in equity shares of TI Clean Mobility Private Limited (TICMPL). To further fuel expansion, agreements have been inked with Multiple Alternate Asset Management (Multiples) and co-investors for an additional investment of Rs 1,700 crore in the form of compulsory convertible Preference Shares (CCPS).

TII's investment in CCPS amounts to Rs 500 crore, while Multiples and co-investors will contribute Rs 1,200 crore. An additional fund raise of Rs 1,050 crore is on the cards, bringing the total investment corpus to Rs 3,000 crore.

Tube Investments of India's ambitious plans show its commitment to driving forward the electrification of transportation in India, aiming to make a significant impact on both economic and environmental fronts.

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