Kabra Extrusiontechnik Ltd., a renowned manufacturer of battery packs, is set to embark on an ambitious plan to significantly increase its manufacturing capacity. Despite a recent decline in demand for electric vehicles, the company remains unwavering in its commitment to growth.
Battrixx, a division of Kabra Extrusiontechnik Ltd., specializes in the production of lithium-ion battery packs. In a recent announcement, Chief Financial Officer Daulat Jain revealed the company’s plan to expand its annual manufacturing capacity to 2 gigawatts by FY25. This represents a threefold increase from the current capacity.
Jain further explained that the company currently manufactures approximately 15,000 to 20,000 battery packs per month. However, through strategic expansion efforts, Kabra Extrusiontechnik Ltd. aims to scale up production to approximately 60,000 packs per month by FY25. This expansion will include the addition of new manufacturing lines dedicated to two-wheeler, three-wheeler, and high-voltage battery packs, catering to the growing demand in these specific segments.
Despite the recent decline in demand for electric two-wheelers, primarily due to the reduction in government incentives, Kabra Extrusiontechnik Ltd. remains optimistic. Jain anticipates a rebound in demand by the end of FY24, as subsidies stabilize and the industry adjusts to the updated policy landscape.
To facilitate this ambitious expansion plan, the company has earmarked an investment of an additional Rs 101 crore. This investment will be implemented gradually up to FY25, depending on the growth trajectory and demand scenarios within the industry. Jain explained that the funding for this expansion will be primarily sourced from internal accruals through the issuance of equity warrants.
As the demand for electric vehicles continues to evolve, Kabra Extrusiontechnik Ltd. recognizes the need to adapt and innovate. By significantly increasing its battery pack manufacturing capacity, the company aims to position itself as a key player in the evolving electric mobility landscape, catering to the evolving needs of its customers.
Frequently Asked Questions (FAQ)
1. Why is Kabra Extrusiontechnik Ltd. planning to increase its battery pack manufacturing capacity?
Kabra Extrusiontechnik Ltd. is expanding its battery pack manufacturing capacity in anticipation of future demand growth and to position itself as a leading player in the electric mobility market.
2. How much will the manufacturing capacity increase?
The company plans to increase its annual manufacturing capacity to 2 gigawatts by FY25, which represents a threefold increase from its current capacity.
3. Which segments will be targeted for the capacity expansion?
The expansion will include the addition of new manufacturing lines for two-wheeler, three-wheeler, and high-voltage battery packs, catering to the specific needs of these segments.
4. How will the expansion be financed?
The expansion will be financed through internal accruals by issuing equity warrants, ensuring the company’s financial stability.
5. What factors have influenced the recent decline in demand for electric two-wheelers?
The decline in demand can be attributed to the reduction in government subsidies and changes in safety standards, which affected consumer purchasing decisions. However, Kabra Extrusiontechnik Ltd. expects demand to rebound as subsidies stabilize and consumers adjust to the revised policy landscape.