Vikram Solar Approves INR 4,371 Crore Capex for 5 GWh BESS Manufacturing Plant in Tamil Nadu
Vikram Solar has approved a capital expenditure of about INR 4,371 crore to set up a 5 GWh battery energy storage system (BESS) manufacturing facility in Tamil Nadu, through its subsidiary VSL Powerhive, as part of its phased BESS expansion strategy.
December 18, 2025. By Mrinmoy Dey
The capex will be undertaken through VSL Powerhive, a wholly-owned subsidiary of the company, for Phase 1 of its BESS manufacturing roadmap, the company stated in a regulatory filing.
It further added that Powerhive’s long-term roadmap outlines a planned 30 GWh of battery cell, module/pack, and BESS manufacturing capacity to be developed in a phased manner. As part of Phase 1, VSL Powerhive will commission a 5 GWh BESS manufacturing facility at Oragadam, Tamil Nadu, by FY27, it said.
Further, the company is also advancing backward integration into battery cell manufacturing, establishing a 7.5 GWh cell manufacturing capacity scheduled to be fully operational by FY29.
“A core component of this venture will be a dedicated R&D lab, tasked with developing future-ready battery products and innovative solutions to maintain market leadership,” it said.
The proposed capital expenditure shall be funded through a combination of debt and equity, it said.
Earlier this month, the company appointed Arun Mittal as the CEO of VSL Powerhive.
In November 2025, Vikram Solar announced the commissioning of a 5 GW solar module manufacturing facility in Tamil Nadu, raising its total capacity to 9.5 GW. The company is now executing the next leg of its growth plan with a further 6 GW module expansion underway, set to raise total capacity to 15.5 GW, the company stated earlier.
It further added that this will be complemented by a 12 GW solar cell capacity currently being executed for commissioning in FY27, reflecting the company's commitment to deepening backward integration and strengthening India's solar manufacturing ecosystem.
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