Mobility fuel manufacturer Castrol India Ltd. Is looking at an opportunity to transition to the electric vehicle (EV) world and to participate with the like-minded players in the market, said Sandeep Sangwan, Managing Director of the company while speaking with CNBC-TV18.
The company has entered into an agreement to acquire 7.09 percent stake in Ki Mobility for a total consideration of Rs 487 crore. Ki Mobility is a part of the TVS Group and is among the leading players in the auto service, maintenance and repair space.
The strategic investment will expand Castrol India’s presence in the aftersales service & maintenance segment.
“This is the first time Castrol India had made such a move because the ecosystem is transitioning very fast especially the independent after-market is concerned and by coming together with Ki Mobility, there are many synergies to change the after-market ecosystem to give customers a better experience,” he said.
Castrol said that this acquisition will take place in two tranches and will be completed by January 2023.
Both Castrol and Ki Mobility will explore business and technology collaborations under this partnership, to bring transformative disruption within the automotive service sector and focus on EV readiness.
Ki Mobility was incorporated in September 2018 and is one of the leading players in the automotive service, maintenance and repair sector in India. The TVS Mobility Group unit aims to provide end-to-end vehicle life cycle management and connected vehicle propositions for consumers on its tech platform.
Over the last three financial years, Ki Mobility has had revenue of Rs 545 crore, Rs 819 crore and Rs 1,207 crore respectively.
Castrol India is very active in the EV space and works with a lot of global and Indian original equipment manufacturers (OEMs) to supply EV fluids.
“We work with Tata Motors, MG Motors, and Renault on EV fluids. We supply EV fluids to them and there are a lot of global partnerships that we are working on.”
This quarter, the company will be launching a new range of EV fluids for the retail market.
The stock was up 1.60 percent in the last week and was down 2.42 percent in the past month.
For the entire interview, watch the accompanying video
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First Published: Jan 5, 2023 3:00 PM IST
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