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TI Clean Mobility Pvt Ltd (TICMPL), a subsidiary of Murugappa Group’s engineering firm Tube Investments of India Ltd, proposes to enter the manufacture and sale of electric small commercial vehicle through a new subsidiary, in which TICMPL and promoter of auto parts firm Jayem Automotives Pvt Ltd J Anand will hold 80 per cent and 20 per cent respectively.
TICMPL has already entered the electric three-wheeler, electric tractor and electric heavy truck segments through organic and inorganic modes. Electric small commercial vehicle (eSCV) will be its fourth offering in the EV segment.
TICMPL will invest ₹160 crore and . Anand Jayachandran will invest ₹40 crore in the equity of the new company that will focus on eSCV.
Further, to augment its R&D and rapid product development capability, TICMPL has entered an agreement with Jayem Automotives Pvt Ltd to pick up 50 per cent equity share capital in the latter, in an all-cash deal for a consideration of ₹206 crore.
TICMPL will pick the equity in Jeyam through a combination of the purchase of equity shares from Anand Jayachandran and B Jayachandran, the promoters, and other shareholders, and by way of subscribing to fresh equity shares.
Investment
TI Clean Mobility will invest ₹176 crore towards the purchase of 54,82,722 equity shares from the founders and other shareholders of Jayem and spend ₹30 crore towards subscription of 9,34,556 equity shares.
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Jayem reported a turnover of ₹85 crore in FY23, up from ₹71 crore in FY22. Its net worth in FY23 was ₹87 crore and it reported a net loss after tax of ₹1.29 crore during the year.
Arun Murugappan, Chairman of TICMPL, said, the company will offer end-to-end mobility solutions to enterprises and logistic companies across inter-city, intra-city, and last mile applications.
The electric SCV business will combine Jayem’s capabilities in concept creation, design, development, and prototyping, combined with TICMPL’s manufacturing and marketing expertise, said J Anand, Managing Director, Jayem.
The acquisition is expected to be completed on or before September 1, 2023, subject to satisfactory completion of the conditions precedents as contained in the agreements.
TICMPL has already unveiled its electric three-wheeler Montra and the market introduction is in progress, starting with the southern States. It is also in the process of developing an electric tractor.
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