Indian lead battery major Amara Raja Energy & Mobility has revealed that “accelerated” construction is underway of its first BESS manufacturing plant that is slated to start operations by the end of this year.
Plans for the BESS unit were disclosed on May 25 ― when the company said its mainstay lead acid battery business helped increase revenue and deliver profit before tax of Rs 1,307 crore ($155 million) for the 2025-26 financial year, ended last March.
Executive director of Amara Raja’s new energy division, Vikramadithya Gourineni, said the BESS unit would complement the group’s development of its lithium ion battery cells business, centred on its ‘giga corridor’ infrastructure in Telangana.
Details of BESS product designs and exact chemistry were not disclosed, but Gourineni said the initial 5GWh capacity facility would aim to cater for commercial and industrial sectors and grid applications.
Meanwhile, the giga corridor is “shaping up well”, with a lithium R&D centre and Li battery cells qualification plant undergoing commissioning and due to start operations in the next month.
Gourineni said the progress marked the firm’s first significant milestone for its support of the national ‘make-in-India’ initiative as it starts supplying commercial samples to customers in advance of launching its first Li gigafactory.
“The first 2GWh of cell manufacturing remains on track for June 2027,” Gourineni said.
Jayadev Galla, group chairman and MD, said Amara Raja’s consistently strong performance over the past year had been underpinned by its mainstay lead acid battery business and growing momentum in the new energy sector.
“Despite evolving geopolitical dynamics and rapid technological shifts, our focus on strategic diversification into new products and chemistries has positioned us strongly for the future.
“Energy storage is fundamental to India’s growth journey, and we are steadily strengthening our capabilities to emerge as the country’s leading cell-to-grid player.”
Revenue from overall operations for the period increased by 16% over the previous year to Rs13,549 crore.
In terms of lead batteries, Amara Raja said the Indian market is projected to reach $6.2 billion by fiscal 2031 with a compound annual growth rate of ~4.2%. It reckoned that the global lead acid battery market is projected to reach $64.2 billion by FY2031 with a CAGR of ~4.4%.
Initiatives such as make in India will also give a huge boost to the sector, according to the group.
Last February, Batteries International reported that Amara Raja planned to launch a US subsidiary — creating a potential foothold for future battery manufacturing or assembly in the country.
The group said in a filing to the National Stock Exchange of India that its board had given the go-ahead for the wholly-owned subsidiary in a bid to support global business expansion.
