SRF Ltd has announced a Rs 600 crore investment to manufacture aluminium foil for battery applications via its subsidiary, SRF Altech. The project, located in Madhya Pradesh, will be executed in two phases by 2030, marking the company’s strategic entry into the EV and energy storage supply chain.
SRF Announces Rs 600 Crore Investment for Battery Component Manufacturing
SRF Ltd has approved a Rs 600 crore capital expenditure project to produce aluminium foil for battery applications. The project will be implemented by its wholly-owned subsidiary, SRF Altech Limited, at its facility in Jetapur, Madhya Pradesh.
Reader Takeaway: SRF expands into EV supply chain with a Rs 600 crore battery foil plant, targeting 2030 for full capacity.
What just happened
The board of SRF Ltd has greenlit a strategic entry into the battery component segment. The company plans to add a manufacturing capacity of 12,000 MTPA for battery-grade aluminium foil. The project will be executed in two distinct phases of Rs 300 crore each, to be funded through a mix of internal accruals and debt.
Why this matters
This investment aligns SRF with India's burgeoning Electric Vehicle (EV) and energy storage sectors. By pivoting toward future-ready, value-added products, the company aims to secure a position in the critical materials supply chain required for modern battery technology.
Implementation timeline
The project is designed for a staggered rollout to manage capital allocation:
- Phase I: Completion expected by 30th September 2028.
- Phase II: Completion expected by 30th September 2030.
Risks to watch
As with any large-scale greenfield project, execution risks regarding timelines and regulatory compliance in Madhya Pradesh remain key factors. Investors should also monitor the competitive landscape for battery materials, as global and domestic players accelerate their own entry into the EV supply chain. The long lead time until full capacity realization means the immediate financial impact on revenue will be deferred.