The board of Kabra Extrusiontechnik Ltd met today to discuss the raising of funds via debt and equity for the expansion of its future technologies brand Battrixx.
Battrixx, part of Kabra Extrusiontechnik, 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 promoters and other investors have shown the confidence to infuse more capital in Battrixx, which will be used to further the growth of the brand in the Electric Mobility sector. A total Rs 101 crs will be raised initially through issuance of warrants to promotors and foreign investors subject to necessary approval of the members of the Company and other regulatory authorities, as maybe applicable. These funds will enable Battrixx to enhance its annual production capacity in phases from existing 100,000 battery packs to 700,000 by end of FY24 to meet the growing demand in electric vehicles industry and other energy storage applications. The Board of the company has also approved to raise necessary additional working capital upto Rs 200 crs from financial institutes
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, 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, Mr. 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 from 2.9 GWh in 2018 to 800 GWh by 2030. Globally, as per Fortune Business Insights the electric vehicle battery market Size [2021-2028] is to reach USD 154.90 billion in 2028 at a CAGR of 28.1% in the 2021-2028 period. 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% of the budget allocated for incentives to create a demand for Electric Vehicles.
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