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Kabra Extrusiontechnik plans to raise ₹301 crore through a mix of debt and equity for the expansion of its future technologies brand Battrixx which provides advanced lithium-ion battery packs with smart battery management systems to power the growth of India’s transition to green energy storage and electric mobility.
The company will also raise ₹200 crore for working capital from financial institutions.
Promoters of Kabra Extrusiontechnik, along with other investors, will infuse more capital in Battrixx which will be used to further the growth of the brand in the electric mobility sector. The company will issue warrants worth ₹101 crore to promoters and foreign investors subject to regulatory authorities.
The board of the company, which met here on Saturday, approved both fund raising proposals, it said.
EV revolution
These funds will enable Battrixx to enhance its annual production capacity, in phases, from the existing 1-lakh battery packs to 7-lakh by the end of FY24 to meet the growing demand in the electric vehicles industry and other energy storage applications.
With the fund, Battrixx will strengthen its leadership position and continue to invest in newer technologies to manufacture batteries for electric vehicles and other energy storage applications. The company aims to reach 2 GWh capacity over the next 12-18 months.
Anand Kabra, Managing Director, Kabra Extrusiontechnik, said the company has clear goals and will use the funds to enhance capacity, upgrade machinery, and research and development to be part of the EV revolution.
Also see: Electric vehicles incentivised under FAME II to touch 2 lakh mark for 2021
Battrixx has cultivated a strong relationship with a set of repeat customers and large global players as suppliers. It decided to go in for the expansion based on increasing interest received for the products. With this move, Battrixx looks to leverage its expertise in innovation, capital-readiness and experience to help India step into a new, green clean future, said Kabra Extrusiontechnik.
Growing market
The lithium-ion battery market size in India is estimated to increase from 2.9 GWh in 2018 to 800 GWh by 2030. Globally, the electric vehicle battery market size is expected to reach $155 billion by 2028 at a CAGR of 28 per cent. In India, the Central government has approved Phase-II of its FAME scheme with an outlay of ₹10,000 crore over three years starting April 1, 2019, with 86 per cent of the budget allocated for incentives to create a demand for electric vehicles.
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