The board of Kabra Extrusiontechnik Ltd today announced that it intends to raise funds for the expansion of its brand - Battrixx that provides advanced lithium-ion battery packs with smart battery management systems. A total of Rs. 101 crore will be raised initially through the issuance of warrants to promotors and foreign investors subject to necessary approval of the members of the company and other regulatory authorities, as may be applicable. With this fund, the company aims to enhance its annual production capacity in phases from the existing 1 lakh battery packs to 7 lakh by end of FY24 to meet the growing demand in the EV industry and other energy storage applications.
Also Read: Battrixx Launches Dual Power Electric Vehicle Smart Batteries In India
The Board has also approved raising necessary additional working capital of up to Rs. 200 crore from financial institutes. With this fund, the company will strengthen its leadership position and continue to invest in newer technologies to manufacture batteries for EVs and other energy storage applications. The company aims to reach 2 GWh capacity over the next 12-18 months.
Anand Kabra, Vice Chairman & Managing Director, Kabra Extrusiontechnik
Anand Kabra, Vice Chairman & Managing Director, Kabra Extrusiontechnik, said, "We are upbeat about the business, especially what we are doing in the electric vehicle (EV) space. We have clear goals and will use the funds to enhance capacity, upgrade machinery and further research and development. We look forward to being part of the EV revolution."
Adding to the announcement, Kabra shared, "Battrixx has cultivated a strong relationship set of repeat customers and large global players as suppliers. We decided to go in for the expansion based on the increasing amount of interest that we have received for our 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 with its sustainable, energy solutions."
The lithium-ion battery market size in India is estimated to increase to 800 GWh by 2030 from 2.9 GWh in 2018. Globally, the electric vehicle battery market size is expected to reach USD 154.90 billion in 2028 at a CAGR of 28.1% in the 2021-2028 period as per Fortune Business Insights. In India, the Central Government has approved Phase-II of its FAME Scheme with an outlay of Rs. 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 (EVs).
