Micromax Energy, an independent firm and part of Micromax Group, is aiming 8-10 per cent market share of the lithium-ion battery market in India — which is at a nascent stage — by next year.
The company has been manufacturing lead acid batteries too, but is now focussing on the lithium-ion batteries as the market for electric vehicles, particularly as the three-wheeler segment is growing at a multi-fold level.
“This year was the beginning of the trials and a lot of people coming in...but in 2020, we are targeting 8-10 per cent of the total market. Next year will be a big market for the lithium-ion batteries in India,” Sunil Bhatnagar, Country Head – Energy Division, Micromax Energy, told BusinessLine.
Micromax has a planned investment of around ₹100 crore in this entity by 2020, from around ₹22 crore that has been already invested till now, mostly on equipments, he said, adding that the company is currently dependent on B2B model, and would commercially launch products once the market for EVs flourishes.
He said that while the market is expected to be around ₹3,500 crore next year for the lithium-ion battery only, there is data available for the current market size, he said. Whereas, the lead acid battery market is around ₹30,000 crore.
Bhatnagar said that the company has a capacity of manufacturing 250 batteries of 7.5 kilowatt hour per day and currently there is an utilisation of 25-30 per cent of the total capacity. So working on the full capacity, Micromax Energy can easily capture 8-10 per cent of the market.
The company is one of the very few local players who are into manufacturing lithium-ion batteries.
Global players such as Toshiba and Denso has tied-up with Suzuki Motor Corporation to make lithium-ion batteries here with an investment of more than ₹1,000 crore and similarly, Mahindra Electric has also signed up with LG Chem of South Korea for the same.