Himadri Speciality to invest Rs 4,800 cr to make Li-ion battery components
Himadri Speciality Chemical on Wednesday announced that it will invest Rs 4,800 crore to foray into the manufacturing of Lithium-ion battery components. According to the announcement, the investment will be over the next 5-6 years.
The plant's total annual production capacity will be 200,000 MT either directly/ or through its subsidiaries. "This investment will be made largely from internal accruals and balance from debt," the company said.
The company believes that the facility will enable the indigenisation of Lithium-ion battery raw materials for global and Indian electric vehicles. It is also expected to reduce the dependency on fossil fuels and the preservation of natural resources.
In a separate announcement, Himadri Speciality Chemical announced that it had completed the acquisition of a 100 per cent stake in Himadri Clean Energy Ltd (HCEL) making it a wholly-owned subsidiary of the company.
Now, HCEL has proposed acquiring a 100 per cent stake in Himadri Future Material Technology Ltd.
"The board of directors of the company at its meeting held on December 5, 2023, inter-alia has considered and approved the proposed acquisition of 100 per cent shareholding of Himadri Future Material Technology Limited by HCEL," the announcement read.
With this, the company will set up the manufacturing facility for Cathode Active Material. The acquisition is expected to be completed within 60 days.
In October, Himadri Speciality posted a nearly three-fold jump in consolidated profit after tax at Rs 100.62 crore for the quarter that ended on September 30. It had clocked Rs 35.88 crore profit after tax (PAT) during the year-ago period.
On Tuesday, Himadri Specialty Chemical's shares ended 3.78 per cent in the green at Rs 301.7 on BSE.