Livguard Gears Up for Battery Dominance with Massive Capex
Manesar, Haryana: Energy storage and solutions company, Livguard, has announced ambitious plans to invest a substantial Rs 3,360 crore ($400 million) over the next five years. This significant investment is aimed at boosting its battery production capacity to an impressive 25 gigawatt hours (GWh).
A Multi-Battery Approach
Livguard, a pioneer in the battery industry, is uniquely positioned to capitalize on the growing demand for energy storage solutions. The company is one of the few players globally to manufacture three distinct battery types: lithium, lead-acid, and sodium-ion. This diversified product portfolio enables Livguard to cater to a wide range of applications, from electric vehicles to renewable energy storage.
Expanding Production Capabilities
To realize its ambitious growth plans, Livguard is expanding its existing energy storage systems (ESS) plant in Manesar, Haryana. This facility, which utilizes lithium-ion phosphate batteries, will see its capacity increase to 1.2 GWh by February 2025. The company has already invested Rs 380 crore in this expansion.
Additionally, Livguard is considering the construction of another ESS plant in a strategic location closer to a port. This new facility is expected to have a capacity of 5 GWh and will serve both domestic and international markets.
Financial Strategy and Future Outlook
Livguard plans to finance its expansion through a combination of equity and debt. The company aims to raise between Rs 1,270 crore and Rs 1,697 crore in equity and a similar amount in debt. This infusion of capital will fuel the growth of its lithium and solar facilities, enabling the company to achieve a projected turnover of Rs 10,000 crore.
The company’s strong distribution network, coupled with its brand recognition, positions it favorably to capture a significant market share. Livguard’s recent investments and strategic initiatives are expected to drive substantial growth, with a projected topline of Rs 6,500 crore in the current fiscal year.
While the company hasn’t finalized its plans for an Initial Public Offering (IPO), it is considering various options, including private sales and public issues. The decision will ultimately depend on market conditions and the overall investment environment.
Solar Power Push
Livguard is also making significant strides in the solar energy sector. The company recently launched hybrid off-grid solar inverters, which have already gained a 4% market share. The company aims to increase this share to 8-9% by the end of FY25 and further to 15% by FY26.
Livguard’s solar business is poised for significant growth, with revenues projected to reach Rs 700 crore by FY25 and double to Rs 1,500 crore by FY26. The company’s strong presence in the PM Suryagriha Yojana, with a 7-8% market share, further solidifies its position in the solar energy market.
With its strategic investments, innovative product portfolio, and strong market position, Livguard is well-positioned to emerge as a dominant player in the energy storage and solutions industry.
