Neuron Energy Private Limited, a manufacturer of lithium-ion for electric 2W and 3W in India, plans to invest INR 50 Crore in the Li-Ion battery pack segment. The investment will be split between 35 crores of working capital financing and 15 crores of equity from the promoters and strategic partners. 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. Neuron also has plans for backward integration into stocking raw materials and handling production along with a contract manufacturer in the near future.
Besides increasing capacity, 40 percent of the investment will be used to fulfill orders from large OEMs. As part of its growth strategy, the company intends to focus on the battery pack business. The investment is also expected to increase cash flow considering Neuron has always been a profitable company.
Commenting on this funding, Pratik Kamdar, Co-Founder of Neuron Energy Private Limited says, “At Neuron Energy, we are committed to facilitating the transition to a sustainable and eco-friendly future for India’s automobile sector. Towards our mission of transforming the EV industry, we are planning to expand our production capacity and enhance research and development. Also, in order 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 fulfil 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 Depot network is expected to remain the same for the next six months in Mumbai, Delhi, Chennai, and Kolkata. In the near future, Neuron may venture into battery research for deep technology as a result of the increase in its R&D team. As part of its expansion plans, Neuron has planned to construct a mega-plant by 2025 that will serve the EV2W and EV3W segments.