How Murugappa Group Is Going Full Throttle In EV Business

Having started its EV journey a few years ago with an exclusive EV subsidiary, the group has recently accelerated its pace with a series of announcements on new launches and fundraising initiatives.

With four electric vehicle manufacturing platforms—e-three-wheelers, e-trucks, e-SCVs, and e-tractors—supported by a cumulative Rs 3,000 crore investment plan, the Chennai-headquartered sugar-to-financial services-to-engineering conglomerate is poised to energize the green mobility segment.

Murugappa Group, makers of the iconic BSA and Hercules cycles, has established an exclusive arm, TI Clean Mobility, for the EV and related businesses under its subsidiary Tube Investments of India.

Founded in February 2022, TICMPL has been working on clean mobility solutions, with the launch of e-three-wheelers under the Montra brand announced last year. With the addition of e-SCVs as its fourth EV platform, TICMPL is now positioned to offer comprehensive mobility solutions to enterprises and logistics companies, meeting their needs across intercity, intracity, and last-mile applications.

What drives Murugappa Group’s EV business is its extensive market presence across various verticals and its strong brand equity, which will be crucial for market penetration, both in India and internationally.

Vellayan Subbiah, TII Executive Vice Chairman, says the electric vehicle industry is experiencing an exciting phase of development, both in India and globally. He notes that India is poised to lead the global adoption of electric vehicles, second only to China.

Currently, the group is developing four platforms, including SCVs, in addition to the MHCV truck and EV three-wheeler, which is already on the market. The e-tractor is also under development.

TIVOLT Electric Vehicles, a venture of Murugappa Group and a subsidiary of TICMPL, will spearhead the launch of their e-SCVs in the coming months, which will also be launched under the Montra brand.

“What excites me the most is our upcoming SCV platform. SCVs represent the largest category in the commercial vehicle segment, making our entry into this arena particularly thrilling. This segment is primed to adopt EVs swiftly, supported by policies, government initiatives, and increasing adoption rates. Our dedication to becoming the foremost player in this segment in India is unwavering," said Subbiah.

Pushing ahead with its EV plans, the group is expanding its dealer network across geographies and stabilizing its supply chain.

On the e-three-wheeler front, the group has received a positive response in the south and is expanding to the north and east, where the major markets are. The group is also strengthening its research and development capabilities to meet the requirements of the EV architecture.

Murugappa’s EV initiative could become even more successful through potential synergies with group companies such as CG Power & Industrial Solutions and Shanthi Gears, both of which operate in the engineering and auto component sectors.

Having started its EV journey a few years ago with an exclusive EV subsidiary, the group has recently accelerated its pace with a series of announcements on new launches and fundraising initiatives.

With four electric vehicle manufacturing platforms—e-three-wheelers, e-trucks, e-SCVs, and e-tractors—supported by a cumulative Rs 3,000 crore investment plan, the Chennai-headquartered sugar-to-financial services-to-engineering conglomerate is poised to energize the green mobility segment.

Murugappa Group, makers of the iconic BSA and Hercules cycles, has established an exclusive arm, TI Clean Mobility, for the EV and related businesses under its subsidiary Tube Investments of India.

Founded in February 2022, TICMPL has been working on clean mobility solutions, with the launch of e-three-wheelers under the Montra brand announced last year. With the addition of e-SCVs as its fourth EV platform, TICMPL is now positioned to offer comprehensive mobility solutions to enterprises and logistics companies, meeting their needs across intercity, intracity, and last-mile applications.

What drives Murugappa Group’s EV business is its extensive market presence across various verticals and its strong brand equity, which will be crucial for market penetration, both in India and internationally.

Vellayan Subbiah, TII Executive Vice Chairman, says the electric vehicle industry is experiencing an exciting phase of development, both in India and globally. He notes that India is poised to lead the global adoption of electric vehicles, second only to China.

Currently, the group is developing four platforms, including SCVs, in addition to the MHCV truck and EV three-wheeler, which is already on the market. The e-tractor is also under development.

TIVOLT Electric Vehicles, a venture of Murugappa Group and a subsidiary of TICMPL, will spearhead the launch of their e-SCVs in the coming months, which will also be launched under the Montra brand.

“What excites me the most is our upcoming SCV platform. SCVs represent the largest category in the commercial vehicle segment, making our entry into this arena particularly thrilling. This segment is primed to adopt EVs swiftly, supported by policies, government initiatives, and increasing adoption rates. Our dedication to becoming the foremost player in this segment in India is unwavering," said Subbiah.

Pushing ahead with its EV plans, the group is expanding its dealer network across geographies and stabilizing its supply chain.

On the e-three-wheeler front, the group has received a positive response in the south and is expanding to the north and east, where the major markets are. The group is also strengthening its research and development capabilities to meet the requirements of the EV architecture.

Murugappa’s EV initiative could become even more successful through potential synergies with group companies such as CG Power & Industrial Solutions and Shanthi Gears, both of which operate in the engineering and auto component sectors.

In line with the current trend, the Murugappa Group has taken the external funding route to fuel its EV venture. TICMPL has recently signed a definitive agreement with South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively GEF) to raise capital of about Rs 580 crore in the form of equity and compulsorily convertible preference shares.

As announced earlier, TICMPL planned to raise capital to the tune of Rs 3,000 crore to fund its multiple verticals of electric vehicles. Post closing the proposed investment from GEF, the overall fundraising would aggregate to Rs 2,530 crore.

TICMPL had earlier raised funds from Multiples Private Equity Fund lll and State Bank of India, along with other co-investors, up to Rs 1,950 crore in the form of equity and compulsory convertible preference shares.

TICMPL has picked up 50% stake for Rs 206 crore in South-based Jayem Automotive, marking its foray in the e-SCV space. TICMPL planned to float a new subsidiary to commercialise e-SCV and has entered into an agreement with J Anand, managing director of Jayem Automotives, to jointly invest in the new company, wherein TICMPL will hold 80% stake while Anand will hold 20% stake.

During FY22, TII acquired IPL Tech Electric Pvt., the manufacturer of electric trucks. IPL Tech, a startup formed in 2019, is touted to be India’s first company to manufacture electric heavy commercial vehicles. The acquisition was through a combination of primary and secondary purchase of shares, for a total consideration of about Rs 246 crore.

Further, TII acquired Cellestial E-Mobility to design and build e-tractors. Cellestial E-Mobility is claimed to be India’s first manufacturer of electric tractors. Cellestial E-Mobility was conceived and established by a team of highly experienced professionals in the areas of automotive design, manufacturing and battery technology.

A 123-year-old conglomerate with presence across India and the world, the Rs 74,200-crore Murugappa Group has diverse businesses in agriculture, engineering, financial services and more. The group has nine listed companies under its umbrella such as Carborundum Universal Ltd., CG Power & Industrial Solutions Ltd., Cholamandalam Financial Holdings Ltd., Cholamandalam Investment & Finance Co., Cholamandalam MS General Insurance Co., Coromandel International, EID Parry (India) Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd. and Wendt India Ltd.