SRF Ltd is setting up a ₹600 crore aluminium foil facility in Madhya Pradesh to target the electric vehicle and energy storage markets. Through its subsidiary SRF Altech, the company aims to produce foil for lithium-ion and sodium-ion batteries by 2030. Investors will evaluate how this move into battery materials complements the company’s strong Q2 performance and diversifies its core chemical and textile businesses.
SRF Ltd has announced a ₹600 crore investment to establish a manufacturing plant for battery-grade aluminium foil in Madhya Pradesh. This facility will be operated by the company’s wholly-owned subsidiary, SRF Altech Ltd, as part of a strategic push to capture demand from the electric vehicle (EV) and energy storage sectors. The company plans to produce specialised foil suitable for both lithium-ion and sodium-ion batteries, which are critical components in the rapidly expanding clean energy supply chain.
The capital expenditure will be spread across two phases, with each phase costing ₹300 crore. According to the company’s timeline, the first phase is expected to be completed by September 2028, followed by the second phase two years later. Once both phases are fully operational, the plant will have a production capacity of approximately 12,000 metric tons of battery-grade aluminium foil per year.
This infrastructure announcement follows a period of financial growth for the company. For the quarter ending September 30, 2026, SRF Ltd reported a 31% increase in consolidated net profit to ₹509 crore, while revenue grew 35% to ₹4,904 crore. The company’s performance films and foil business was a primary driver of this performance, recording a 51% revenue increase. By allocating funds toward battery-grade components, the company is attempting to transition deeper into high-value manufacturing segments, moving beyond its traditional strengths in technical textiles and chemical manufacturing.
From an investor perspective, this expansion represents a significant capital allocation strategy aimed at securing a foothold in a sunrise sector. While the current balance sheet has benefited from strong quarterly profits, the company will face the standard challenges associated with scaling a new production line, including technology adoption, achieving the required material purity for battery manufacturers, and competing in a market that is sensitive to raw material costs. The success of this project will depend on how efficiently the company executes its phased capacity buildup and whether it can secure long-term demand from battery producers.
Investors may monitor future updates regarding the project’s construction milestones, the status of machinery procurement for the two phases, and any management commentary regarding client partnerships in the EV space. Tracking the utilisation rates of the new capacity once it comes online in 2028 will also be an important metric for evaluating the long-term return on this investment.