Tube Investments of India (TII), part of Murugappa Group, has been planning to play aggressively in the green mobility space.
Primarily in three areas, namely electric three-wheelers under the Montra brand, electric tractors and Medium & Heavy Commercial Vehicles (M&HCV) segment where it foresees “tangible, economic benefits for the customer.”
The message is as clear as it can be, “Our biggest focus is the electric vehicle segment where we foresee an immense opportunity for growth,” stated Mukesh Ahuja, MD, Tube Investments of India (TII), in the company’s annual report.
The engineering company is engaged in manufacturing precision steel tubes and strips, automotive, industrial chains, car door frames and bicycles. Its divisions include mobility, engineering, metal-formed products, and others.
TII aims to introduce three different tractor variants in four-wheel drives for different user segments. It has already started work on the production facilities for the tractor at Apex Park in Chennai, Tamil Nadu, with the vehicles slated for launch in FY 2023-24.
It may be, recollected that the company through its subsidiary TI Clean Mobility had completed the acquisition of Celestial E-Mobility that gave it access to the e-tractor technology earlier this year.
In the commercial vehicle space, where legacy players are still mulling introducing electric trucks, the company has chosen to manufacture the 55-tonne truck, covering short haulage operations for the iron & steel, cement and construction industries.
“We have already started work on the manufacturing facility at Manesar, Haryana, for making the e-trucks. We would be creating separate distribution networks to cater to the EV platforms,” stated Ahuja.
To date, TII has invested Rs 250 crore in equity shares of TICMPL.
For further expansion of the e-mobility business, it, along with TICMPL, entered into agreements with Multiple Alternate Asset Management (Multiples) and co-investors for an investment of Rs 1,700 crore in the form of Compulsorily Convertible Preference Shares (CCPS).
As per the terms of the arrangement, TII will be investing Rs 500 crore towards CCPS and Multiples and co-investors will invest Rs 1,200 crore.
Further, an additional fund raise of Rs 1,050 crore has been planned, taking the total fund aggregate to Rs 3,000 crore.
“Our vision is to operate on multiple platforms in the productive sector of the EV spectrum. We believe we are at a significant stage of disruption in the EV industry in India, with immense unexplored possibilities,” he concluded.