V-Guard acquires 19 pc stake in Mumbai-based Gegadyne Energy Labs for Rs33.5 cr

BBN Report

KOCHI, January 15-2021: V-Guard Industries said its board has approved the acquisition of 18.77 per cent state in Gegadyne Energy Labs Pvt Ltd (GEL) for a cash consideration of Rs 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 like total cost of ownership (TCO), life cycle, recharge time, safety profile and maintenance costs, compared with 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.

Start-up collaboration

V-Guard envisages start-up collaboration as one of the routes to participate in emerging technologies and building product capabilities for fuelling future growth.

“GEL investment is a stepping-stone in this direction and signifies V-Guard’s willingness to move into cutting edge technology space and its growing focus on creating disruptions in established businesses,” a V-Guard statement said.

V-Guard foresees potential in GEL’s alternative battery technology for various primary applications like DUPS / Energy storage in addition to secondary applications in other products of its existing portfolio.

Mithun Chittilappilly, Managing Director, V-Guard Industries, said the proposed acquisition marks V-Guard’s foray into deep tech start-up space in line with V-Guard’s philosophy of delivering thoughtful products and experiences to its consumers.

“We believe this collaboration will help GEL to realise its potential faster while also enabling V-Guard to further strengthen and expand its product offerings,” the MD said.

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

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