Amara Raja plans to invest Rs. 2,350 crores in Log9 Materials
Amara Raja plans to invest Rs. 2,350 crores in Log9 Materials

Amara Raja plans to invest Rs. 2,350 crores in Log9 Materials

December 26, 2022

Log9 Materials, the Bangalore-based start-up which generates, develops, and researches nanotechnology began producing batteries for electric two- and three-wheelers in December of last year and is now producing 8,000–10,000 units annually.

Log9 materials are known to manufacture RapidX batteries, this company claims to be the industry’s fastest charging method. It also partners with businesses to create an electric vehicle charging infrastructure network across the country.

Amara Raja Batteries aims to become a manufacturer of battery packs for all market segments backs Log9 Materials with an investment of 2350 crores in a span of four years.

Nearly Rs 200 crore of the entire budgeted expenditure would go toward expanding the company’s current battery pack plant, and Rs 150 crore will be used to construct a cell manufacturing facility.

The founder and CEO of Log9 Materials, Akshay Singhal told Money Control;

“We are investing Rs 150-160 crore in the battery pack facility, another Rs 150-200 crore on the cell manufacturing facility. Beyond that in FY2025, we plan to invest Rs 2,000 crore in a mega Gigafactory as part of our expansion plans.”

Log9 Materials, which has already explored the E2W AND E3W markets, is now trying to make a difference in the E4W market, trials for four-wheeler electric commercial vehicles have already begun.

Log9 has earlier partnered with businesses like Hero Electric, EKA (a subsidiary of Pinnacle Industries Limited), Omega Seiki Mobility, and Northway Motorsport (to launch e-4Ws) across two-wheeler, three-wheeler, and four-wheeler platforms.

ARBL has prestigious original equipment manufacturers like Maruti Suzuki India Limited, Hyundai Motors India Limited, Ford India Limited, Tata Motors Limited, Mahindra and Mahindra Limited, Honda Cars India Limited, Renault Nissan, Honda Motorcycles & Scooters India Private Ltd, Royal Enfield, Bajaj Auto Ltd, and many more as its clients. The Company’s Industrial and Automotive batteries are exported to 32 countries across the globe.

Vikramadithya Gourineni, executive director at ARBL, mentioned in a statement;

“This will mark the first in a series of interesting developments that we plan to execute in the future. Log9 has made great progress in developing a range of technologies that will prove very promising in emerging mobility applications. This investment is in line with our core purpose and our values.”

Log9 has succeeded in putting forth a record of 200 batteries across two-wheeler, three-wheeler, and four-wheeler platforms and this has resulted in an order book of 20,000 batteries which will be manufactured in the coming year.

Log9 is seen to scale up its outputs, i.e. 50,000 units for two and three-wheelers and 400,000 units for two, three, and four-wheelers per annum by FY24.

Log9 Materials also looks forward to spending 2,00 crores to set up a gigafactory in FY2026 once both the battery pack and call manufacturing facilities will be ready. A Gigafactory is a common term given to all factories and services that produce and manufacture EV batteries on a large scale. Gautam Adani-led AdaniGroup and Mukesh Ambani led Reliance Industries have also imprinted that they will be focussing and installing gigafactories in the near future.

To raise funds for its capital expenditure Log9 is in talks with global players.

“Our deep understanding and knowledge of chemistry and materials will add to our competitive advantage in setting up our world-scale battery manufacturing facility,’’

Singhal mentioned adding further;

“For funding this growth (the Rs. 2,000 investment), we either look for debts or dilute our stake or even go for an IPO. We are yet to take a call on that.”

As per Fintrakr’s estimates, Log9 is valued at around Rs. 1700 crores. Fintrakr is an online financial health Analysis of Indian start-ups. Additionally, it provides information on investment rounds, ESOP allocation, and the progress of various enterprises.

Log9 Materials to date has raised a sum of $50 million in funding in a cycle of 7 rounds. The latest seen is the Series B round of $9.5 million on 16th September 2022.

The hailing Bangalore start-up is funded by great venture capitalists like Sequoia and Exfinity Ventures and strategic investors like Amara Raja Batteries.

This year the company recorded a revenue of 24.5 crores hoping to reach the three-digit number by the end of FY22.

Read More: Amararaja signs MoU with Telangana Govt to set up a Lithium-ion Battery Gigafactory

The post Amara Raja plans to invest Rs. 2,350 crores in Log9 Materials appeared first on E-Vehicleinfo.

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