KP Group is planning to establish a 10 GWh battery cell manufacturing facility with an investment of over ₹5,000 crore, with the first phase expected to become operational by March 2028. The Gujarat-based renewable energy company is expanding into battery cell manufacturing as demand for battery energy storage systems (BESS) continues to grow.
Affan Faruk Patel, Whole-Time Director of KPI Green Energy, a subsidiary of KP Group, said the company plans to develop battery cell manufacturing capacity of 10 GWh and expects to launch the project within the next one to one-and-a-half years. The company is also exploring government incentive schemes to improve the project’s financial viability and achieve its targeted internal rate of return.
KP Group Expands BESS Development Business
Alongside battery cell manufacturing, KP Group is strengthening its battery energy storage project development business in domestic and international markets.
The company has received cumulative orders of approximately 1.5 GWh from Gujarat Urja Vikas Nigam Limited (GUVNL) for battery energy storage projects. Under these projects, KP Group will store electricity and supply it to GUVNL during peak-demand periods. The company is also working on power purchase agreements (PPAs) for the projects.
Internationally, KP Group has a 5 GWh BESS project pipeline in Botswana and is exploring opportunities to develop similar projects in Europe after 2030.
The company is also targeting expansion across African markets, including Botswana, Zambia and Tanzania, as well as Gulf Cooperation Council (GCC) countries such as Saudi Arabia and the United Arab Emirates. These international plans primarily relate to battery storage project development rather than battery cell manufacturing.
KP Group Targets 10 GW Renewable Energy Portfolio by 2032
KP Group operates across independent power production (IPP), engineering, procurement and construction (EPC), and manufacturing businesses.
The group’s IPP portfolio currently stands at approximately 3.2 GW, with a target to expand to 10 GW by 2032. Its renewable energy EPC business has a capacity of 6.2 GW and is also targeted to reach 10 GW during the same period.
The group additionally manufactures galvanised and fabricated products used across renewable energy, railways, roads, highways and marine infrastructure.
Green Hydrogen Plans
KP Group has also entered the green hydrogen segment, with a pilot project at its own manufacturing facility and an order from NTPC for green hydrogen.
However, the company is still evaluating the feasibility of large-scale capital investments in green hydrogen, considering the investment requirements compared with its solar and wind businesses. According to Patel, the larger commercial opportunity in green hydrogen is expected to develop after 2030.
The proposed battery cell manufacturing facility, expansion of BESS development operations and renewable energy capacity targets are expected to strengthen KP Group’s position across India’s clean energy value chain.
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