Three foreign investment funds have committed ₹1,250 crore over three years to Elest, a company linked to Rajesh Exports, which has no current operations but is set to supply land, machinery, and technology to ACC Energy Storage Pvt. Ltd, the battery division of Rajesh Exports, according to livemint.com. This investment coincides with Rajesh Exports being selected under the government’s Production Linked Incentive (PLI) scheme to build 5GWh of lithium-ion battery capacity.
The funds’ infusion into Elest explains its steep valuation despite the absence of operational activity. Elest has agreed to provide critical infrastructure and technology to ACC Energy Storage, which is spearheading the battery manufacturing initiative. The PLI scheme aims to incentivize domestic production of lithium-ion batteries, with Rajesh Exports positioned as a key beneficiary. The three foreign investors’ capital injection aligns with the government’s push to develop a local battery manufacturing ecosystem.
This investment highlights the growing interest in India’s battery manufacturing sector, driven by government incentives and rising demand for electric vehicle components. Rajesh Exports’ battery business is valued at around ₹50,000 crore, reflecting the sector’s potential. The deal underscores the strategic importance of lithium-ion battery production in India’s energy transition and the role of private and foreign capital in scaling capacity. Comparable initiatives in the sector have attracted significant funding as companies race to meet domestic and global demand.
Rajesh Exports’ ACC Energy Storage plans to build 5GWh of lithium-ion battery capacity under the PLI scheme, a project supported by the ₹1,250 crore investment in Elest. The government’s scheme targets a total production capacity of 20GWh, with Rajesh Exports among the selected winners, marking a concrete step in India’s battery manufacturing ambitions.