VSL PowerHive, a wholly owned subsidiary of Vikram Solar Limited, has announced plans to establish a 7.5 GWh per annum Battery Energy Storage System (BESS) assembly facility at Oragadam, near Chennai, Tamil Nadu. The proposed plant is designed to expand to 15 GWh in subsequent phases and forms part of the company’s broader strategy to develop 30 GWh of total battery manufacturing capacity by 2030.
The upcoming facility will be spread across approximately 1.65 lakh square feet and is scheduled for inauguration in January 2027, with commercial operations expected to commence in April 2027. The investment marks a significant expansion of Vikram Solar’s presence in the energy storage segment, complementing its existing solar manufacturing operations and supporting India’s growing demand for domestically manufactured battery storage solutions.
The development comes amid increasing demand for energy storage infrastructure as India continues to expand its solar and wind power capacity. Battery energy storage systems are becoming essential for managing renewable energy variability, supporting grid stability, shifting surplus electricity to peak-demand periods and enabling round-the-clock renewable power supply.
According to projections from the Central Electricity Authority (CEA), India will require approximately 47 GW of energy storage power capacity and 236 GWh of storage capacity by 2031–32. The anticipated growth in storage requirements is expected to create significant opportunities for domestic battery manufacturing and reduce dependence on imported energy storage technologies.
As part of its long-term expansion strategy, VSL PowerHive also plans to enter battery cell manufacturing through a 7.5 GWh programme beginning in 2028. This initiative is intended to establish an integrated domestic battery manufacturing ecosystem, covering both battery cells and complete energy storage systems.
The company is also developing indigenous battery technologies and has initiated multiple patent filings to strengthen its intellectual property portfolio and reduce reliance on imported technical expertise.
Once operational, the Oragadam facility will manufacture lithium iron phosphate (LFP)-based battery energy storage systems for utility-scale and commercial and industrial (C&I) applications. Its product portfolio will include 5.016 MWh and 6.25 MWh liquid-cooled BESS containers, PowerHive P261 battery cabinets, utility-scale storage systems and renewable energy-integrated battery storage solutions.
The proposed manufacturing operations will be developed under the Make in India initiative, with a focus on strengthening domestic energy storage production capabilities and supporting the country’s expanding renewable energy infrastructure.
Commenting on the announcement, Gyanesh Chaudhary, Chairman and Managing Director of Vikram Solar, highlighted the importance of energy storage in supporting India’s transition towards reliable, round-the-clock clean electricity. He stated that the ability to store renewable energy efficiently would play a critical role in the next phase of India’s energy transition and emphasised the need to develop these capabilities domestically.
Chaudhary further noted that the proposed facility would extend Vikram Solar’s participation in the clean energy value chain beyond solar power generation technologies into energy storage solutions.
Arun Mittal, Chief Executive Officer of VSL PowerHive, highlighted the increasing demand for battery energy storage systems across India’s electricity sector. He stated that the company aims to establish advanced domestic battery manufacturing capabilities, beginning with 7.5 GWh of assembly capacity and subsequently expanding into cell manufacturing and an integrated battery production ecosystem.
The planned facility is also expected to create skilled employment opportunities, support local talent development in advanced battery technologies and strengthen Tamil Nadu’s emerging clean technology manufacturing ecosystem.
Through its phased manufacturing expansion and focus on indigenous technology development, VSL PowerHive aims to position itself as a domestic supplier of battery energy storage solutions for utilities, renewable energy developers and industrial consumers.
The proposed 7.5 GWh facility, together with the company’s planned expansion to 15 GWh and its broader 30 GWh manufacturing target by 2030, represents a step towards strengthening India’s battery energy storage manufacturing capabilities and supporting the country’s transition to a more flexible, reliable and renewable energy-based electricity system.
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