The investment is planned to be divided into two segments which first is Rs 35 crore of working capital and Rs 15 crore of equity from the promoters and strategic partners.
Indian lithium-ion electric two- and three-wheeler manufacturer Neuron Energy Private Limited plans to invest Rs 50 crore in the lithium-ion battery sector.
“This move by the company is to cater to the increasing demand in their order book. The increase in demand for Li-Ion batteries is a testament to the fact that there is a substantial increase in demand for electric mobility owing to the rising eco-consciousness among consumers,” the company communicated in a press release.
Neuron also plans to reverse-integrate raw material storage and product handling with contract manufacturers soon. As it is considered for the growth strategy, the company plans to focus on battery production. Given that Neuron has always been a profitable company, the investment is expected to increase cash flow as well.
Pratik Kamdar, co-Founder of Neuron Energy said, “Towards our mission of transforming the EV industry, we are planning to expand our production capacity and enhance research and development. Also, to further the EV 2W and 3W segment in the country, we have always been focused on producing high-quality, user-friendly batteries,”
“This investment will help us equalize the demand-supply ratio for batteries. We are confident to fulfill the increase in demand in our order book through this financing at the designated time.”
“Among the advantages of Neuron’s Li-ion battery product line are the microprocessor-based BMS, the 4 temperature sensors, the appropriate cell spacing for thermal management, and the Neuron App for remote assistance,” the company said.
