Murugappa Group’s engineering company Tube Investments of India Ltd (TII) has diversified into the electronics components space by picking up a majority stake in Moshine Electronics Private Ltd (MEPL), a manufacturer of camera modules for mobile phones, in an all-cash deal for₹8.64 crore.
The company has executed a share purchase and shareholders’ agreement to acquire a 76 per cent equity stake in MEPL. The acquisition would be through the secondary purchase of shares for a total consideration of ₹8.64 crore. MEPL has its manufacturing facility in Noida, according to a statement.
The three-year-old MEPL had reported a revenue of ₹21 crore in FY21
“Through our acquisition of MEPL, we have diversified into the electronics components ecosystem which will enable us to fulfil the Atmanirbhar Bharat vision of our country,” said Arun Murugappan, Chairman of Tube Investments.
The acquisition is expected to be completed on or before September 30, subject to conditions and approvals.
TII recently diversified into manufacturing electric vehicles as part of its long-term business growth plans and to create multiple lines of new business and revenue streams to maintain its growth trajectory.
The company has identified electronic products and components as a growth vector. India is a major importer of electronic items and parts. “Recent policy initiatives from the Government of India offering production linked incentives and phased manufacturing programmes are expected to boost indigenisation of this growing segment,” it said.