Fujiyama Power Systems Boosts Battery Manufacturing Capacity

Fujiyama Power Systems Ltd announced plans to significantly expand its battery manufacturing capabilities by adding 1 GWh of lithium battery capacity at its Ratlam, Madhya Pradesh facility and establishing a new 1 GWh tubular battery plant in Hathras, Uttar Pradesh. The total investment for these expansions is approximately Rs 25 crore, with commercial operations expected in the second and third quarters of fiscal year 2026-27. The company also approved changes to its Articles of Association regarding rotational directorships for Joint Managing Directors.

Reader Takeaway: Capacity expansion in key battery segments; execution risk for new facilities.

What just happened

Fujiyama Power Systems has approved the addition of 1 GWh of lithium battery manufacturing capacity at its Ratlam plant and the establishment of a 1 GWh tubular battery manufacturing facility at Hathras. The total investment for these projects is Rs 25 crore, funded through internal accruals.

The Ratlam expansion is an addition to an existing 2 GWh capacity, bringing the total to 3.5 GWh upon completion. The Hathras facility replaces the 1.3 GWh capacity at the Bawal plant, which was damaged by a fire on May 06, 2026.

Why this matters

These capacity expansions signal Fujiyama Power's intent to scale up production in both the rapidly growing lithium-ion battery market and the established tubular battery segment. The strategic replacement of the Bawal facility's capacity is crucial for maintaining market presence. The investments are expected to support future revenue growth.

The backstory

The company previously announced a 2 GWh expansion at its Ratlam facility. The fire incident at the Bawal plant earlier in 2026 necessitated a replacement for that production capacity. Fujiyama Power has historically focused on battery manufacturing for various applications.

What changes now

Shareholders can anticipate increased production output from Fujiyama Power from FY2026-27 onwards. The company's total battery manufacturing capacity will grow, positioning it to cater to a larger market demand. The governance change regarding rotational directors aims for better compliance and board flexibility.

Risks to watch

Key risks include potential delays in project execution, cost overruns beyond the estimated Rs 25 crore, and the company's ability to achieve projected operational timelines for Q2 and Q3 FY 2026-27. The successful integration of the new facilities and market acceptance of its products are also critical.

Peer comparison

Information on specific peer capacity expansions is not available in the filing. However, the Indian battery manufacturing sector is seeing significant growth, driven by electric vehicles and energy storage solutions. Companies like Exide Industries and Amara Raja Energy & Mobility are also investing in expanding their capacities in both lead-acid and lithium-ion battery segments.

Context metrics (time-bound)

• Lithium Battery Expansion: 1 GWh at Ratlam, expected by Q2 FY 2026-27.
• Tubular Battery Facility: 1 GWh at Hathras, expected by Q3 FY 2026-27.
• Total Investment: ~Rs 25 crore.
• Fire Incident: Bawal facility damaged on May 06, 2026.

What to track next

Investors should closely monitor the progress of the Ratlam and Hathras projects, any updates on their commissioning timelines, and the company's financial performance as these new capacities come online. Any further announcements regarding technology adoption or market penetration will be key.