V-Guard acquires stake in battery start-up Gegadyne Energy Labs

Our Bureau Kochi | Updated on January 15, 2021

V-Guard Industries’ board has approved the acquisition of a minority stake (18.77 per cent) in Gegadyne Energy Labs Private Limited (GEL) for a cash consideration of ₹33.4 crore.

GEL is a Mumbai based alternate battery technology start-up developing innovative energy storage (battery) solutions, which could deliver better battery performance on key parameters such as total cost of ownership (TCO), Life Cycle, Recharge time, Safety profile and Maintenance costs, compared to prevalent battery technologies. In addition, all key raw materials can be sourced locally, thereby providing distinctive advantage against some of the upcoming battery technologies based on rare metals with significant import dependence.

V-Guard envisages start-up collaboration as one of the routes to participate in emerging technologies and building product capabilities for fueling future growth. GEL investment is a stepping-stone in this direction and signifies V-Guard’s willingness to move to cutting edge technology space and its growing focus on creating disruptions in established businesses. The company foresees potential in GEL’s alternative battery technology for various primary applications such as DUPS/Energy storage in addition to secondary applications in other products of its existing portfolio.

Mithun Chittilappilly, Managing Director, V-Guard Industries Ltd, said, “The proposed acquisition marks V-Guard’s foray into deep tech start-up space and is in line with V-Guard’s philosophy of delivering thoughtful products and experiences to its discerning consumers. We believe this collaboration will enable V-Guard to strengthen and expand its product offerings and help GEL to realise its potential.”

Deloitte Touche Tohmatsu India was the financial advisor and Cyril Amarchand Mangaldas was the legal advisor to the transaction for V-Guard.

Published on January 15, 2021

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