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Amara Raja Energy to Invest ₹5.5 Billion in Subsidiaries

The investment will support its lithium-ion battery gigafactory development and manufacturing requirements

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Battery manufacturer Amara Raja Energy & Mobility has approved additional investments totaling ₹5.5 billion (~$57.64 million) in two of its wholly owned subsidiaries to support its lithium-ion battery gigafactory development and manufacturing requirements.

The investment includes an additional ₹5 billion (~$52.4 million) in its advanced battery manufacturing subsidiary, Amara Raja Advanced Cell Technologies (ARACT), to support gigafactory development.

This funding is in addition to an existing investment approval of ₹20 billion (~$209.61 million) for the subsidiary. Including the latest approval, the total investment approved for ARACT Technologies stands at ₹25 billion (~$262.02 million).

The company said it is building a state-of-the-art gigafactory in Divitipally, Telangana, with a long-term target capacity for lithium-ion cell and battery-pack manufacturing of up to 16 GWh.

The approved investment also includes an additional ₹500 million (~$5.24 million) in funding for Amara Raja’s electronics and charging solutions arm, Amara Raja Power Systems (ARPSL). This investment aims to support the subsidiary’s further operational and manufacturing requirements.

The latest funding is in addition to an existing approval of ₹500 million (~$5.24 million) for ARPSL, taking the total approved investment to ₹1 billion (~$10.5 million).

Both investments can be made through loans, equity, or other modes in one or more tranches.

Amara Raja is focused on lithium-ion cell and pack manufacturing, EV charging products, and energy storage solutions. Its existing manufacturing footprint includes a stationary pack assembly capacity of approximately 1.2 GWh at Tirupati and a mobility pack assembly capacity of around 1.5 GWh at Divitipally in Andhra Pradesh. The Tirupati facility also houses an EV charger assembly plant producing 7.4 kW Type-1 AC chargers.

This February, Amara Raja announced its plans to incorporate a wholly owned U.S. subsidiary, ARE&M US Inc. The company had approved an investment of up to $5 million in the entity, which would operate in the energy and mobility segment, including battery and component distribution.

India added 4.6 GWh of battery energy storage capacity in the first quarter (Q1) of 2026, a 941% increase from 442.7 MWh added in Q4 2025, according to Mercom India Research’s Q1 2026 India’s Energy Storage Landscape Report. The country’s cumulative installed battery energy storage capacity reached 5.9 GWh as of March 2026.

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