Ola Cell Technologies Pvt Ltd (OCTPL), a subsidiary of Ola Electric Mobility Ltd (OEML), is set to invest over ₹2,000 crore in FY25 to scale its lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu. The company has already invested ₹1,200 crore by September 2024 under Phase 1(a), establishing a 1.4-GWh production capacity. The lithium-ion cells manufactured at OCTPL’s Krishnagiri plant have secured BIS certification and are currently in the homologation phase with Ola Electric’s vehicles.
The company plans to integrate these cells into its electric two-wheelers by Q1 FY26, with production expected to scale significantly after that. As part of its expansion under Phase 1(b), OCTPL is increasing its manufacturing capacity from 1.4 GWh to 5 GWh and aims to further expand this to 20 GWh in subsequent phases.
To finance the ongoing expansion, OCTPL has earmarked ₹2,200 crore in capital expenditure for FY25, which will be funded through a combination of debt and equity. Additional funds raised through Ola Electric’s IPO are expected to increase production capacity to 6.4 GWh.
However, ICRA recently revised the company’s outlook from stable to negative, citing intensifying competition and a longer-than-expected timeline to profitability. The company has also received benefits under the ACC-PLI scheme for its 20 GWh battery unit, qualifying it for subsidies contingent on achieving value addition targets over a five-year period starting in FY25. These subsidies are expected to significantly enhance project returns over the medium term, though their realization depends on meeting the outlined production goals.
OCTPL’s liquidity position remains strong, supported by periodic financial infusions from its parent, Ola Electric, and an undrawn term loan of approximately ₹1,288 crore as of September 2024. The company also held unencumbered cash and liquid investments worth ₹1,335 crore as of September 30, 2024, bolstered by proceeds from the parent company’s IPO. As a pioneer in lithium-ion cell manufacturing in India and a key supplier to Ola’s EV ecosystem, OCTPL is strategically positioned to leverage the government’s push for EV adoption and the growing demand for electric vehicles in the domestic market.
The lithium-ion cells manufactured at OCTPL’s Krishnagiri plant have secured BIS certification and are currently in the homologation phase with Ola Electric’s vehicles. The company plans to integrate these cells into its electric two-wheelers by Q1 FY26, with production expected to scale significantly after that. As part of its expansion under Phase 1(b), OCTPL is increasing its manufacturing capacity from 1.4 GWh to 5 GWh and aims to further expand this to 20 GWh in subsequent phases.
To finance the ongoing expansion, OCTPL has earmarked ₹2,200 crore in capital expenditure for FY25, which will be funded through a combination of debt and equity. Additional funds raised through Ola Electric’s IPO are expected to increase production capacity to 6.4 GWh. However, ICRA recently revised the company’s outlook from stable to negative, citing intensifying competition and a longer-than-expected timeline to profitability.
The company has also received benefits under the ACC-PLI scheme for its 20 GWh battery unit, qualifying it for subsidies contingent on achieving value addition targets over a five-year period starting in FY25. These subsidies are expected to significantly enhance project returns over the medium term, though their realization depends on meeting the outlined production goals.
OCTPL’s liquidity position remains strong, supported by periodic financial infusions from its parent, Ola Electric, and an undrawn term loan of approximately ₹1,288 crore as of September 2024. The company also held unencumbered cash and liquid investments worth ₹1,335 crore as of September 30, 2024, bolstered by proceeds from the parent company’s IPO. As a pioneer in lithium-ion cell manufacturing in India and a key supplier to Ola’s EV ecosystem, OCTPL is strategically positioned to leverage the government’s push for EV adoption and the growing demand for electric vehicles in the domestic market.
