Greaves Electric to set up battery assembly line in TN plant by 2027

Electric two and three-wheeler maker Greaves Electric Mobility, which has filed papers for a public issue of shares, plans to set up an in-house battery pack assembly line at its Ranipet plant in Tamil Nadu by the financial year 2027.

Bengaluru-based Greaves Electric is the electric mobility arm of Greaves Cotton Ltd. It manufactures and sells electric two-wheelers under the Ampere brand, and electric as well as ICE three-wheelers under Ele, Greaves and Electra brands.

Currently, the automaker purchases assembled battery packs from external suppliers. Typically, battery accounts for 35-40% of the manufacturing costs of electric two-wheelers.

For Ampere two-wheelers, the battery pack accounts for around 33% of the overall component costs, while for its electric three-wheelers, the battery pack constitutes 54% of the cost.

In-house battery assembly is part of the company’s efforts to improve cost efficiency. Lithium-ion battery procurement costs are over 25% of the company's total expenses.

“To enhance cost efficiency, quality control, and supply chain reliability, we plan to establish an in-house battery pack assembly at our Ranipet factory by fiscal 2027, with long-term goals of backward integration for greater supply chain autonomy,” the company said in its DRHP.

The assembly line will have an annual installed capacity of 400,000 units. The assembly line is expected to be commissioned in May 2026, and commercial production from July 2026.

The company is targeting to raise Rs 1,000 crore from its proposed IPO. Of the net proceeds, it will utilize Rs 82.9 crore for establishing the battery assembly capability.

Greaves Electric is in the process of switching its electric two-wheelers to LFP batteries, considering its higher thermal resistance and longer life.

The company noted that it plans to invest in developing battery packs with alternate battery technologies and evaluating new formulations to cut costs, reduce charging time and improve efficiency.

Greaves Electric has identified 13 suppliers across South-East Asia, China and India for the supply of cells, which are the raw materials for the battery pack assembly line. The automaker is yet to enter any definitive supply arrangements with cell suppliers.

The Ranipet plant is among the company’s three existing manufacturing facilities. It manufactures Ampere electric two-wheelers there and has an annual capacity of 4.80 lakh units.

Meanwhile, the company targets to use Rs 375.3 crore from the IPO proceeds for product and technology development and enhancing capabilities at its technology center in Bengaluru.