V-Guard acquires non-controlling stake in a battery startup - Gegadyne Energy Labs Private Limited
KOCHI, India, Jan. 21, 2021 /PRNewswire/ -- V-Guard Industries (V-Guard), India's leading FMEG Company, today announced that its Board has approved the acquisition of a minority stake (18.77%) in Gegadyne Energy Labs Private Limited (GEL) for a cash consideration of Rs. 33.4 crores.
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 to 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.
V-Guard envisages start-up collaboration as one of the routes to participate in emerging technologies and building product capabilities for fueling 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. 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.
Speaking on the occasion, Mr. Mithun Chittilappilly, Managing Director, V-Guard Industries Limited, said, "The proposed acquisition marks V-Guard's foray into deep tech start-up space and is in-line with V-Guard's philosophy of delivering thoughtful products and experiences to its discerning consumers. We believe this collaboration will enable V-Guard to further strengthen and expand its product offerings as well as help GEL to realize its potential faster."
Deloitte Touche Tohmatsu India was the financial advisor and Cyril Amarchand Mangaldas was the legal advisor to the transaction for V-Guard.
About V-Guard:
V-Guard Industries Limited is one of India's leading consumer electrical and Electronics Company. Incepted in 1977 by Mr. Kochouseph Chittilappilly to manufacture and market Voltage stabilizers, V-Guard is now a force to reckon with in the Indian electrical and electronics goods panorama. The company has established a strong brand name and aggressively diversified to become a multi-product company catering to the Light Electricals sector manufacturing Voltage stabilizers, Inverters, Pumps, House wiring cables, Electric water heaters, Fans, Solar water heaters, Kitchen Appliances and has also recently forayed into Air Cooler & Modular Switches. In an endeavour to reach every nook and corner of the country, V-Guard is armed with an expansive network of over 500 distributors, 200 service centres, 5500 direct dealers and 20,000 retailers and a committed after sales team. Under the leadership of Mr.Mithun Chittilappilly, Managing Director, V-Guard will continue to create thoughtfully engineered products in its endeavour to enrich consumer lives.
About Gegadyne Energy:
Gegadyne Energy is developing a Proprietary Battery Technology that can charge from 0-100% under 15 mins, all of this while compiling to highest safety standards compared to any existing battery tech across the globe. The Tech is Scalable, Patented, Validated and more importantly consists of proven steps in a proprietary arrangement. Gegadyne Energy produce battery grade chemicals and much more for use in our Battery Tech and broader economy. Their batteries are Safe Sustainable and profitable technology for the future of Energy Storage. The tech is being developed completely in India for the world. Aiming to leapfrog batteries to the next stage and thereby change the economics of Electric vehicles and everything else associated with them now and into the future.
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