KP Group plans a ₹5,000 crore, 10 GWh battery cell plant as storage moves to the centre of its KP 3.0 roadmap
Gujarat's KP Group is planning 10 GWh of battery cell manufacturing with more than ₹5,000 crore of investment, the most concrete step yet in its KP 3.0 roadmap. Storage assembly is due first and cell production later, though reported timelines differ.
Gujarat-based renewable energy group KP Group is planning 10 gigawatt-hours (GWh) of battery cell manufacturing capacity with an investment of more than ₹5,000 crore, Business Standard reported on 11 November 2026. Business Standard gives a March 2028 target for the first phase. The company roadmap separately targets BESS assembly in FY2027–28 and cell production in FY2028–29. Trade outlet Solarbytes put the investment at about $533 million. It said the group has hired three consultants to help it apply for support under the relevant government schemes.
Affan Faruk Patel, whole-time director of KP Group company KPI Green Energy, said the company expects to launch the project in around one to one-and-a-half years.
How it fits KP 3.0
The cell plan is the most concrete step so far in KP 3.0, the roadmap presented at its 30 September 2026 investor day and reported in October. By FY32, that roadmap targets:
- 10 GW of owned renewable generation assets, led by KPI Green Energy;
- 10 GWp of third-party engineering, procurement and construction (EPC) work; and
- 10 GWh of integrated battery capability, from battery energy storage system (BESS) assembly up to cell manufacturing.
Battery storage sits with a separate subsidiary, Sun Drops Energia. The group has appointed battery technologist Erez Schreiber as chief executive of its BESS business, and has reportedly lined up a ₹4,000 crore IPO plan for Sun Drops Energia as storage becomes a core growth bet.
Assembly first, cells next
The timelines are worth reading closely, because they do not all match. KP's own KP 3.0 material lists BESS assembly production starting in FY28 and cell production starting in FY29. A TradingView/Moody's report describes a 5 GWh BESS assembly line in FY28 followed by a 5 GWh cell unit in FY29, with both meant to scale to 10 GWh each at a proposed 110-acre campus in Gujarat. The Business Standard report cites a March 2028 first phase. It also carries a line saying the plans relate to battery storage development rather than cell manufacturing, which contradicts its own headline.
The most consistent reading is a staged build. KP Group will start by assembling storage systems, which can begin with externally sourced cells, and then move into making cells, the technically harder and more capital-intensive step. Investors and policymakers should treat the cell-plant dates as targets until land, technology partners and scheme approvals are confirmed.
Why cells are India's missing link
India has added battery pack and BESS assembly capacity quickly. But most lithium-ion cells, the electrochemical heart of every pack, are still imported, mainly from China. That leaves the country's fast-growing storage pipeline exposed to supply shocks, trade restrictions and currency swings, and it means much of the value in each storage project goes abroad.
The government's production-linked incentive scheme for advanced chemistry cells was designed to close that gap, but progress on commercial cell output has been slower than planned. Each new domestic entrant with a credible cell plan adds to the industrial base. A renewable developer with its own project pipeline also has a natural in-house buyer for its cells.
That is KP Group's pitch: vertical integration. A company that builds solar and wind farms, executes EPC contracts and now makes storage systems and cells can capture margin at each step, and can offer firm, dispatchable renewable power instead of output that varies with the weather. As India's grid takes on more solar, that kind of firm power is increasingly what buyers are paying for.
What to watch
The key signals will be KP Group's choice of cell chemistry and technology partner, whether it wins support under central or state schemes, and whether the BESS assembly line starts on time in FY28. Those milestones will show whether the 10 GWh cell ambition becomes a factory or stays on a slide.
Sources
- https://www.business-standard.com/amp/industry/news/kp-group-to-invest-over-5-000-crore-in-10-gwh-battery-cell-manufacturing-126111101404_1.html
- https://solarbytes.info/battery-and-energy-storage-system/kp-group-10-gwh-battery-cell-manufacturing-inr-5000-crore-kpi-india-12803750
- https://solarquarter.com/2026/10/08/kp-group-unveils-kp-3-0-targets-10-gw-ipp-10-gw-epc-and-10-gwh-battery-manufacturing-capacity-by-fy32/
- https://kpgroup.co/kp-3-0-3/
- https://www.tradingview.com/news/moodys:004c7c8c01ef6:0-kp-group-plans-4-000-crore-sun-drops-energia-ipo-as-storage-becomes-core-growth-bet/
- https://www.energetica-india.net/news/kp-group-unveils-kp-30-with-10-gwh-battery-manufacturing-goal
- https://urbanacres.in/kp-group-sets-10-gw-renewable-power-target-plans-10-gwh-battery-capacity/