Gujarat-based renewable energy company KP Group sets out over ₹5,000 crore to establish 10 GWh of battery cell manufacturing capacity, with the first phase expected to be operational by March 2028.
The proposed facility marks the group’s entry into battery cell manufacturing as it looks to expand beyond renewable energy generation and engineering, procurement and construction (EPC) into the battery energy storage value chain.
KP Group targets battery storage projects in overseas markets
Alongside cell manufacturing, KP Group is looking to expand its battery energy storage system (BESS) development business in international markets.
The company has a reported 5 GWh BESS project pipeline in Botswana and is considering a similar development model in Europe after 2030. Its overseas expansion plans also cover Zambia and Tanzania, as well as Gulf Cooperation Council markets such as Saudi Arabia and the UAE.
Existing BESS orders and project pipeline
KP Group is already active in India’s BESS segment and has received cumulative orders of approximately 1.5 GWh from Gujarat Urja Vikas Nigam Limited (GUVNL).
Under these projects, the company will store electricity and supply it during peak-demand periods. The associated power purchase agreements are also being worked out, according to Patel.
The company’s proposed cell manufacturing investment could add a domestic manufacturing component to its existing storage project development business. However, the company has not yet disclosed the proposed plant’s location, battery chemistry, production configuration or phase-wise capacity split.
Renewable energy portfolio targeted to reach 10 GW
KP Group’s independent power producer (IPP) portfolio currently stands at approximately 3.2 GW, while its renewable energy EPC portfolio is around 6.2 GW.
The group aims to increase both portfolios to 10 GW by 2032. It is also exploring opportunities in green hydrogen, including a pilot project at its own facility and an order from NTPC.
The proposed 10 GWh battery cell facility would position KP Group across additional stages of the storage value chain. Its progress will depend partly on securing incentives, project financing and establishing the manufacturing timeline.
Gujarat Emerges as a Battery Manufacturing Hub, but Execution Remains a Challenge
KP Group’s proposed investment comes as Gujarat strengthens its position in India’s battery storage manufacturing ecosystem. According to Mercom India’s October 2026 Energy Storage Manufacturing Ecosystem Report, Gujarat accounts for 51% of the country’s battery storage manufacturing capacity under construction, the highest share among Indian states. However, the expansion of manufacturing announcements has yet to translate into equivalent operational capacity. Only 21.6% of India’s combined operational and planned battery storage manufacturing capacity is currently operational, while battery cell production remains a relatively small part of the domestic manufacturing base. This presents a key challenge for new entrants such as KP Group: establishing production capacity will need to be followed by competitive manufacturing costs, consistent product quality, reliable access to raw materials and sufficient utilisation of the facility.