According to foreign media reports,India's Tata Group is considering spinning off its battery businessThe spin-off may be listed on the Mumbai** stock exchange at a later date, and the valuation of Agratas after listing could be between US$5 billion and US$10 billion (about 35.9 billion yuan to 71.9 billion yuan).
However, the person also said that the plans were in the early stages of consideration, and Tata Group declined to comment.
In June 2023, Tata Group signed an agreement to build a battery plant in Sanand, in the northern Indian state of Gujarat. The investment in the new plant is approximately INR 13,000 crore, with an initial planned production capacity of 20GWh.
Just a month after announcing the construction of its first battery factory, the Tata Group announced a £4 billion investment in the UK to build a battery plant with an annual capacity of 40GWh to supply batteries for Jaguar Land Rover's electric vehicles.
However, although Agratas has deployed battery production capacity on a large scale, its main customers are still Tata Motors and Jaguar Land Rover, both under the Tata Group, and the export channel has not been opened.
At the same time, as battery competition has entered the white heat, battery giants such as CATL, BYD, and LG New Energy are competing for the global market. In the Indian market alone, South Korea's Hyundai Group, Vietnam's Vinfast, Ola Electric and other companies are also planning to build electric vehicle battery factories in the local market.
Under market pressureThe spin-off of Agratas will help its battery business raise capital to expand in the Indian renewable energy and electric vehicle markets.
It is worth mentioning that at a time when the involution of the new energy industry is becoming more and more serious, many companies have put the spin-off of the battery business on the agenda, in order to gain a glimmer of life in the highly competitive market.
In July 2023, Sunwoda announced that the company intends to spin off its Sunwoda Power Technology to be listed on the GEM. Sunwoda's intention is very clear, after the independent listing, it not only raises the valuation of the power battery business, but also provides more chips for listing and financing, and enhances its profitability and comprehensive competitiveness. According to incomplete statistics, more than 10 listed companies have planned to spin off lithium battery-related businesses to go public. Among them, Xiamen Tungsten New Energy, Ruitai New Materials, Tongguan Copper Foil, etc. have completed the spin-off and listing, and BYD's Fodi Battery, Ganfeng Lithium's Ganfeng Lithium Battery, Lishen Battery Plate, and Polyfluorine Multi-battery Plate have also expressed their intention to spin off, and are in preparation or in the process of listing. It is expected that with the continuous development of the new energy industry, spin-off and listing may become a new driving force for the expansion of the company's industry.