With an eye on catering to the increasing demand in their order book, Neuron Energy has announced plans to invest INR 50 crore in the Li-Ion battery pack segment. The investment is also expected to increase cash flow.
A press release from Neuron Energy noted that the investment will be split into two parts – INR 35 crore of working capital financing and INR 15 crore of equity from the promoters and strategic partners. Notably, as part of their growth strategy, the company intends to focus on the battery pack business, the release added. Besides increasing capacity, 40% of the investment will be used to fulfil orders from large OEMs.
The company also has plans for backward integration into stocking raw materials and handling production along with a contract manufacturer in the near future.
As for the future, the company intends ramping up its R&D team, and may venture into battery research. Further, Neuron Energy also plans to construct a mega-plant by 2025 that will serve the electric two- and three-wheeler segments.
Pratik Kamdar, Co-Founder, Neuron Energy said the investment will help the company to equalise the demand-supply ratio for batteries.
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