Vikram Solar has received board approval for a substantial capital expenditure of approximately ₹4,371 crore to launch the first phase of its Battery Energy Storage System (BESS) roadmap. The investment will be undertaken through the company’s subsidiary, VSL Powerhive Private Limited, marking a strategic expansion into the energy storage sector.
The planned investment will fund the establishment of 30 GWh of battery cell, module/pack, and BESS manufacturing facilities over a phased timeline. As part of Phase 1, VSL Powerhive is set to commission a 5 GWh BESS manufacturing facility at Oragadam, Tamil Nadu, by FY27. The company is also advancing backward integration into battery cell manufacturing, with a 7.5 GWh cell manufacturing capacity scheduled to be fully operational by FY29, subject to statutory and regulatory approvals.
A key component of this initiative will be a dedicated Research and Development (R&D) lab, aimed at developing future-ready battery products and innovative solutions to maintain market leadership. The capital expenditure will be funded through a combination of debt and equity, as determined by the board.
“This investment reflects Vikram Solar’s strategic move to diversify its renewable energy portfolio beyond traditional solar manufacturing and installation services,” the company said in a regulatory filing.
The BESS initiative positions the company to capitalize on the growing demand for energy storage solutions in India’s renewable energy landscape, it added.
Vikram Solar has already commissioned a 5-GW solar module manufacturing facility at Vallam, Tamil Nadu, bringing its total installed manufacturing capacity to 9.5 GW. The Vallam plant, based on TOPCon technology and designed for future upgrades to HJT, produces modules across M10, G12, and G12R formats. The company also announced plans earlier this year to enter battery manufacturing, including a 1 GWh solid-state battery plan, further expanding its footprint in Tamil Nadu where it operates facilities at Oragadam and Gangaikondan.
The board’s approval of this significant ₹4,371 crore investment demonstrates Vikram Solar’s confidence in the energy storage market and positions the company as a comprehensive renewable energy solutions provider, combining solar generation capabilities with energy storage infrastructure.
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