Multiples to tap EV space in commercial segment: Renuka Ramnath

Multiples have announced an infusion of Rs 1,200 crore in electric three-wheeler maker TICMPL or TI Clean Mobility, a wholly-owned subsidiary of Tube Investments part of Murugappa Group. TI Clean Mobility is into the design and development of electric tractors and electric Heavy Commercial Vehicles.

Renuka Ramnath says that this is in line with Multiples’ focus on an environment-conscious sector which is also a new emerging sector of the future.

The private equity firm sees a huge impending shift in the electric vehicle (EV) business which is at an inflection point. Through its TI Clean Mobility investment PE firm Multiples is playing the space through the commercial EV segment.

Talking about the rationale of this investment, Ramnath said, “We have focused on how we identify the big shifts in the economy, and appropriate the growth and value creation by entering these spaces at the time when the proof of concept is already established and you ride the group. We have been early movers. But we are not an angel or first-stage investor so we have been catching these big shifts at the inflection.

She added, “We see a huge shift impending in the electric vehicle space. It is driven by our country's commitment to the environment and also on-ground adoption.”

Speaking to CNBC-TV18 about the fundraising, Ramnath mentioned that the total fundraising in this subsidiary of TI is a Rs 3,000 crore fundraise of which Multiples will be investing along with its partners about Rs 1,200 crore, another Rs 1,000 plus crore will be raised from other investors and TI themselves will be infusing Rs 750 crore.

She highlighted the rapid growth in this space by saying that 1 million electric vehicles are already sold in 2022 and this trend is only going to accelerate in the coming years, and investors who position themselves accordingly are likely to reap significant rewards.