The Murugappa Group has acquired the remaining 30.04% stake in electric tractor start-up Cellestial E-Mobility for Rs 50.90 crore, making it a wholly-owned subsidiary of the group.
"The acquisition of the remaining stake in Cellestial will help TICMPL to consolidate its holding in the electric tractors business and maximise value to the company. We thank the founders for their contribution." said M.A.M Arunachalam, chairman of TICMPL.
Compared to conventional IC tractors, Cellestial's electric tractors with a swappable battery are believed to have a reduced total cost of ownership. The Murugappa Group plans to invest Rs 350 crore in the new auxiliary for clean mobility through a combination of value, equity, and debt instruments.
In December 2021, TI Cycles of India, a subsidiary of the Murugappa Group, announced its entry into the electric vehicle industry, focusing on last-mile commuting, last-mile delivery, and personal mobility vehicles.
"Cellestial is well positioned to achieve its full potential and acquire the balance shareholding in Cellestial by TICMPL will accelerate the same.", said the co-founders of Cellestial, Siddhartha Durairajan and Syed Mubasheer Ali.
About Murugappa Group
The Murugappa Group, headquartered in Chennai, is one of India's largest business conglomerates with 29 companies. It leads the market in several product categories, such as transformers, technical ceramics, electro minerals, and auto parts and systems.
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