Tube Investments of India Limited (TII) subsidiary, TI Clean Mobility Private Limited (TICMPL), has finalized agreements to acquire a 50% stake in Jayem Auto, a Coimbatore-based company, through a combination of primary subscription and secondary share purchase. The deal is valued at up to Rs 206 crore. Additionally, TICMPL has announced its entry into the electric small commercial vehicle (eSCV) segment by establishing a new subsidiary, in which Jayem Auto’s Managing Director, J Anand, will hold a stake.
Under the agreement, TICMPL and J Anand will jointly invest in the new subsidiary, with TICMPL holding an 80% stake and J Anand holding a 20% stake. Jayem Auto is currently involved in the design, development, testing, and manufacturing of a wide range of automotive components, systems, and prototypes, with specific expertise in electric vehicles. TICMPL’s investment in Jayem Auto is expected to bolster research and development efforts and accelerate product development initiatives.
The strategic acquisition of a 50% stake in Jayem Auto aligns with TICMPL’s objective of expanding its presence in the electric vehicle (EV) space and strengthening its position in the market. As a subsidiary of TII, TICMPL is dedicated to developing innovative and sustainable mobility solutions. The partnership with Jayem Auto will enable TICMPL to leverage Jayem’s expertise in EV technology and enhance its own capabilities in the eSCV segment.
The eSCV segment holds significant promise in India’s evolving transportation landscape. With a growing focus on reducing carbon emissions and transitioning to cleaner energy sources, electric commercial vehicles have emerged as a key solution. By entering this segment, TICMPL aims to capitalize on the increasing demand for eSCVs and contribute to the country’s sustainable mobility goals.
The collaboration between TICMPL and Jayem Auto brings together complementary strengths and expertise. TICMPL’s vast experience in the automotive industry, coupled with Jayem Auto’s proficiency in EV design and development, creates a powerful synergy that will drive innovation and product excellence. The partnership will enable the companies to jointly explore opportunities, invest in cutting-edge technologies, and deliver advanced solutions to meet the evolving needs of the market.
The investment by TICMPL in Jayem Auto will have a transformative impact on the latter’s research and development capabilities. The infusion of funds will fuel the expansion of Jayem Auto’s facilities, augment its technical expertise, and accelerate its product development efforts. This strategic collaboration will not only enhance Jayem Auto’s competitiveness but also contribute to the overall advancement of the Indian EV ecosystem.
The acquisition of a 50% stake in Jayem Auto represents a significant milestone for TICMPL in its quest to become a key player in the electric mobility sector. By strengthening its presence in the eSCV segment, TICMPL is well-positioned to cater to the evolving demands of commercial vehicle customers and contribute to the widespread adoption of electric transportation solutions.
As India continues to embrace the transition towards cleaner and greener mobility, collaborations and investments in the EV sector are crucial. TICMPL’s partnership with Jayem Auto reflects the industry’s recognition of the importance of collaboration and knowledge-sharing to drive sustainable transportation. This strategic move will propel TICMPL and Jayem Auto towards achieving their shared vision of delivering innovative, environmentally friendly, and technologically advanced mobility solutions to the Indian market.
In conclusion, TICMPL’s acquisition of a 50% stake in Jayem Auto, combined with its entry into the eSCV segment, marks a significant step in its pursuit of sustainable mobility solutions. The investment will accelerate research and development efforts and bolster product development in the electric vehicle space. By capitalizing on the strengths of both companies, TICMPL and Jayem Auto are poised to play a pivotal role in shaping the future of electric mobility in India.
