Cost of setting up a battery manufacturing plant

- Advertisement -
- Advertisement -

Observing the immense business potential of battery manufacturing, many players are entering the domain. Significantly, many small and medium enterprises (SMEs) are also trying their luck in this promising and growing sector. However, one must do thorough research before setting up a battery manufacturing plant, particularly regarding the cost of establishing a manufacturing or assembling plant.

By Sandhya Malhotra

Tuesday, August 31, 2010: Investments required
The investment to be made to set up a battery plant depends on the capacity of the plant in terms of how many lakhs of ampere-hour batteries are to be produced. It also depends on the product mix. While setting up a battery plant, a company must calculate all the expenses including process layout, plant machinery selection and procurement, installation and commissioning of equipment, design and development of the entire range of products with unique features, design and development of all moulds and tools for different components and quality standards, and process parameters.

- Advertisement -

“Approximately, the cost of installing and implementing the machinery would be 10-15 per cent of the machinery cost, and the cost of maintaining these machines is normally 2-3 per cent of their cost, annually,” says Rajesh Gupta, director, Okaya Power Ltd.

According to S K Prabhu, principal consultant, Lead Technology, Navaress consultants “Investment plans vary depending on the volume of batteries to be produced. It can vary from $10,000 for a small scale battery manufacturing plant to above $100,000 for a medium scale plant. Moreover, the quality and type of battery also impact the cost.

Says Prabhu, “The cost of battery manufacture is much lower than importing batteries. Hence, small and medium scale battery players prefer setting up a plant, whereas large manufacturers go for imported batteries. To produce 2,000 batteries per month of 150 ampere-hour 12 volts batteries, an investment of about Rs 30 million is estimated.  This includes certification from the Pollution Control Board (PCB), land, buildings and machinery.”

Anil Joshi, general manager, projects, Artheon Electronics, says, “ The amount to be invested depends entirely on the type of technology, plant capacity and desired level of automation. It can range anywhere between Rs 100-150 million to set up a basic manufacturing facility with a very limited product range. However, a good facility will cost anywhere between Rs 500 million to Rs1000 million.”

Machinery cost
The manufacturing unit should be equipped with a strong integrated production system, with a wide range of rugged high speed automatic machines to achieve high levels of accuracy and consistency. Says D D Sharma, CEO, Fluid-o-Matic, a maker of battery manufacturing machinery, “We have solutions for all types of battery machines, starting from single entry level models to full assembly line of semi- automatic machines. Buying machinery is a long term investment, since all our machines have a 10 year lifespan. Apart from this, another benefit of buying machines locally is that one can be free of any worries about breakdowns and changing spare parts.”

Above all, maintaining and installing machines are quite economical and simple as they do not require any special platforms or base erection. Arora adds, “Like any other machinery, battery manufacturing machines require maintenance from time to time, due to wear and tear. Costs are nominal except for some critical spares, which are expensive. However, by adopting preventive maintenance practices, breakdowns can be reduced thereby keeping the overall maintenance costs low.”

Other costs
“Before embarking on manufacturing batteries, it is imperative to study a proper project report to arrive at the total investments required and the profitability factors,” Prabhu points out. Besides this, one should budget for the cost of land, manpower, machinery, infrastructure like building, sheds, power, compressed air, raw and treated water, storage facilities, material handling equipment such as pallet trucks, fork lifts, EOT, cranes, licence fees and product testing equipment.
Land: Selection of land should be done with care. Ideally, a battery plant should be set up in special economic zone (SEZ) to avail government exemption from taxes. If the plant is an export oriented one, it should be close to a port.

Manpower: Though India is facing a scarcity of trained manpower, it is essential to have suitable funds to conduct monthly or quarterly training programmes. “While technology and R&D play an important role in battery manufacturing, investments should be made in hiring the right kind of resources. It is also viable to create a large pool of talent, conversant with the latest in the world of battery technology,” says Kapil Sood, CEO, Fusion Power Systems.

Easy funds
Getting a bank loan to start a battery manufacturing plant is quite hassle free. Indian banks give finance for complete projects. State and central government financial institutions extend credit for various requirements. Public and private sector financial institutions also finance new industries, says Arora.
Prabhu says, “Funds are available from banks to the extent of 75 per cent of the value of buildings and equipment. Finance is available for all types of battery manufacturing plants, both large and small scale. Moreover, private and public banks/ financial institutions will give loans to buy imported machinery.”

“Although we don’t sell our machines on credit to our customers, getting a loan from banks to buy battery manufacturing machinery is a simple process,” says Sharma.

Ways to reduce production costs

While manufacturing batteries, it is necessary to control the recurring costs. One can control it by operating units at their full capacities, thereby, reducing overheads and increasing the production output. “Moreover, attempts should be made to  automate the production process in some of the critical areas/bottlenecks as this will help achieve higher volumes. At the same time, there will be manufacturing consistency, which, in turn, will help reduce rejections and failures,” advices Arora.
“Our production line is largely automated, so labour costs aren’t much of a concern. I would advice companies to invest more on automated machines rather than on manual machines,” signs off Sharma.

Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine

- Advertisement -

Related Artcles

73 COMMENTS

  1. Hello startup’s
    Here am consultant for business advisory for 8 sectors
    1) hospitality
    2) automobile components
    3) beverage
    4) it service
    5) batteries
    6) pharmaceutical
    7) industrial revolution 4.O
    8) FMCG

    Kindly contact me at [email protected]
    Or contact me at 8708881773
    Kindly dedicated business owners only call me

  2. Wants to start e Rikshaw battery, solar batteries and other types manufacturing plant and consultancy in small scale industry in Haryana.
    Please send the detail on this email – [email protected], whatsapp +91 9810782910
    BRIJ MOHAN SINGH

  3. Hi, I’m planning to manufacture lithium-ion batteries for automobile. How can you help me. Can get in contact with me on 9442261646

  4. Dear sir ,
    We want to start manufacturer lithium ion batteries.can you guide us start to end product,(choice of plant and machinery, production,QC, despatch,etc

  5. i am interested in importing Lithium ion battery pack with Battery management system from china for the material handling equipment like electric pallet truck , stacker ,forklift reach truck and for the imported material handling equipment replacement market . Kidnly kind me what all we need to check before importing .
    write to me on [email protected]

  6. I am interested in manufacturing of latest low cost manufacturing technology for lithium ion battery manufacturing, inetially for two and three wheelers and subsiquently for electric car and cell phones.
    We are in search for technocrat/know how technology transfer/consultants for this establishment.
    Do mail on our id.

  7. I planned to start a automotive battery manufacturing plant and I had simple unique idea from other battery companies for quick charging so please guide me to startup battery manufacturing plant & mail to [email protected]

  8. I am intrested to start lithium battery assembling or manufacturing for small scale items I.e scooter mcycle rickshaw etc
    Pls mail me

  9. Greetings, I would like to know where can I buy the machinery to setup a Lithium Ion battery factory for EV cars in Saudi Arabia. I would also like a ballpark figure on costs of machinery,

  10. I am interested for battery water manufacturing plant so please send me business plan and feasibility studies of the setting up all types of battery water plant in Gujarat contact me on 9974440880 or Mail me [email protected]

  11. hello hello startups
    Am here a consultant and manufacturer
    For making lead batteries and solar panels
    Like
    E rickshaw batteries
    Two Wheeler batteries
    Inverters batteries
    solar panels
    For any information contact me
    But pls don’t waste time of mine and your self by calling me as a fake .

    Thank you
    Vikas patnaik
    S&B.UC {Solar and Battery unit consultant}
    consultant for battery unit setup and solar power unit setup
    Business phone no. +91 7027891346
    Business gmail id : [email protected]
    Professional linkedin id : vikas patnaik. (entrepreneur investor and CEO at vigorous)
    Website : search vigorous batteries
    Am here a consultant and manufacturer
    For making lead batteries and solar panels
    Like
    E rickshaw batteries
    Two Wheeler batteries
    Inverters batteries
    solar panels
    For any information contact me
    But pls don’t waste time of mine and your self by calling me as a fake .

    Thank you
    Vikas patnaik
    S&B.UC {Solar and Battery unit consultant}
    consultant for battery unit setup and solar power unit setup
    Business phone no. +91 7027891346
    Business gmail id : [email protected]
    Professional linkedin id : vikas patnaik. (entrepreneur investor and CEO at vigorous)
    Website : search vigorous batteries

  12. hello startups
    Am here a consultant and manufacturer
    For making lead batteries and solar panels
    Like
    E rickshaw batteries
    Two Wheeler batteries
    Inverters batteries
    solar panels
    For any information contact me
    But pls don’t waste time of mine and your self by calling me as a fake .

    Thank you
    Vikas patnaik
    S&B.UC {Solar and Battery unit consultant}
    consultant for battery unit setup and solar power unit setup
    Business phone no. +91 7027891346
    Business gmail id : [email protected]
    Professional linkedin id : vikas patnaik. (entrepreneur investor and CEO at vigorous)
    Website : search vigorous batteries

  13. HELLO VIKAS JI IM INTRESTED IN TWO WHEELER BATTERY MANUFACTURIN IN RAIPUR CHHATTISGARH PLEASE SUGGEST ME DINESH JAIN MO9893509096

  14. Hi this is muzammil iam looking after to start a battery manufacturing plant in south india. I need your advice so kindly contact me through this number (91-9843575786). I really need to know about the capital we need to invest and also government facilities and its support for the production and also the tax.

  15. hello startups
    Am here a consultant and manufacturer
    For making lead batteries
    Like
    E rickshaw batteries
    Two Wheeler batteries
    Inverters batteries
    For any information contact me
    But pls don’t waste time of mine and your self by calling me as a fake

    If u really need my help
    Contact me
    feel free
    7027891346 vikas
    or gmail me [email protected]

  16. Hi,

    This is Rajesh Pai, based in Kolkata. I am a manufacturer of Fire Doors, in Eastern India. I am looking forward for a medium scale battery assembly and manufacturing plant in Kolkata / Ponducherry.

    This is a part of our companies diversification program.

    Regards

    Rajesh Pai

    • hello rajesh pal
      Am here a consultant and manufacturer
      For making lead batteries
      Like
      E rickshaw batteries
      Two Wheeler batteries
      Inverters batteries
      For any information contact me
      But pls don’t waste time of mine and your self by calling me as a fake

      If u really need my help
      Contact me
      feel free
      7027891346 vikas
      or gmail me [email protected]

  17. I am interested please send me business plan and feasibility studies of the setting up car batteries assembling plant in bhopal m.p.state India

    • Hello VINEET
      Am here a consultant and manufacturer
      For making lead batteries
      Like
      E rickshaw batteries
      Two Wheeler batteries
      Inverters batteries
      For any information contact me
      But pls don’t waste time of mine and your self by calling me as a fake

      If u really need my help
      Contact me
      feel free
      7027891346 vikas

  18. I am interested please send me business plan and feasibility studies of the setting up car batteries assembling plant in bhopal m.p.state

  19. I am interested please send me business plan and feasibility studies of the setting up car batteries assembling plant in Nigeria Lagos state.

    • Hello startups
      Am here a consultant and manufacturer
      For making lead batteries
      Like
      E rickshaw batteries
      Two Wheeler batteries
      Inverters batteries
      For any information contact me
      But pls don’t waste time of mine and your self by calling me as a fake

      If u really need my help
      Contact me
      feel free
      7027891346 vikas

  20. Hello
    This is Vikas Sharma from Delhi.
    I want to go for manufacturing of mobile battery so humbly request please suggest cost and property for this kind of business and provide me full details of given details
    Vikas sharma
    8178797389
    Mail I’d is [email protected]

    Reply

  21. I am Nazir,from kerala , want to establish a car battery manufacturing ,and recycle unit in Doha Qatar,I want your valuable advice,and the help to factory setting with technicians and I want to know the cost of related machineries. My e mail id is [email protected] mob.9495787748

    • Hello nazir
      Am here a consultant and manufacturer
      For making lead batteries
      Like
      E rickshaw batteries
      Two Wheeler batteries
      Inverters batteries
      For any information contact me
      But pls don’t waste time of mine and your self by calling me as a fake

      If u really need my help
      Contact me
      feel free
      7027891346 vikas

  22. Hello startups
    Am here a consultant and manufacturer
    For making lead batteries
    Like
    E rickshaw batteries
    Two Wheeler batteries
    Inverters batteries
    For any information contact me
    But pls don’t waste time of mine and your self by calling me as a fake

    If u really need my help
    Contact me
    feel free
    7027891346 vikas

  23. TO, THE MANAGER MATERIALS / PROJECT MANAGER

    Sub: Your Valuable Enquiries for Stainless steel Industrial Raw Material Supply
    Dear Sir,

    We take this opportunity to introduce ourselves as one of the Leading Importer & Manufacturers of Pipe-Fittings, Flanges & Fabricated Pipes in Stainless Steel, Alloy Steel, & Nickel Alloys. Importers, Stockists and suppliers of Sheets, Pipes, Tubes, plates, Rods & Wires in Stainless Steel, Alloy Steel, Copper, Brass, Aluminium, Bimetal, Titanium, Tantalum, Monel, Cupronickel, Inconel, Hastalloy, Zircorium, Barellium & many other Nickel / Super Alloys.

    We are in these line from long time and regularly supplying to largest Refineries, Chemicals, Power, Petrochemicals, Fertilisers, Pharmaceuticals, Cement, Oil & Gas, Steel, Paper, Defence & Engineering units.

    Items stocked & dealt by us are manufactured by world class / ISO certified manufacturers and we provide original Manufacturers Test Certificate / Government Approved Laboratory Test Certificate and third party Inspection Certificates and Guarantee / Warranty Certificates for the supplies.

    We are very keen to start business with your Esteemed Organisation as well. Kindly enlist our name in your Approved Suppliers List and send us your each and every Purchase Enquiries for your requirements in above items so as to enable us to submit our most competitive offers. If any Form is available for Firm Registration, please send us the same.

    If you required any more information, please feel free to contact us.

    Thanking you and awaiting for your early and favourable response to start a long and fruitful business relationship.

    Yours faithfully,

    DINESH SHAH

    +91 97690 09422

    M/s. Saachi Impex

    45/47, Kawa Bhavan,

    Ardeshir dady street,

    Ground floor,

    Near Alankar Cinema,

    Mumbai – 400 004,

    Maharashtra, (India).

    Tel: +91 22 6651 8603 / 6752 1192

    Email: [email protected]

  24. My name is Adekunle Isakin and I am interested in this industry. Can we discuss over the email and if you are interested in my proposal we can meet. My email address is [email protected]. Please contact me over the email

    Regards

    • Hello startups
      Am here a consultant
      For making lead batteries
      Like
      E rickshaw batteries
      Two Wheeler batteries
      Inverters batteries
      For any information contact me
      But pls don’t waste time of mine and your self by calling me as a fake

      If u really need my help
      Contact me

      7027891346 vikas

  25. Hello startups
    Am here a consultant
    For making lead batteries
    Like
    E rickshaw batteries
    Two Wheeler batteries
    Inverters batteries
    For any information contact me
    But pls don’t waste time of mine and your self by calling me as a fake

    If u really need my help
    Contact me

    7027891346 vikas

    • Dear Sir,
      I am interested in setting up a battery plant initially for two wheeler and E rickshaw please share the details and requirements for the same.
      We are looking for assembly plant of lithium ion batteries for the same too can you help on this also.
      What are the returns?

  26. Thank you so much for such great information.

    I am Abdul Azeem interested to start manufacturing in india
    Mob / Whats app : 00966564818048

    Thank you.

  27. I intrested in Battery manufacturing To seeing brite future in this field .I have 1300 sq yard land with construction near delhi at sonipat (HR) I feel needs consultant What am I right

Leave a Reply to Ak rana Cancel reply

Please enter your comment!
Please enter your name here

Exclusive

5G RedCap To Transform IoT Module Shipments

0
Over 60% of IoT module shipments will originate from the Asian & Oceania region. Automotive sector is expected to be a significant driver. The...
XR Headset Quest 3, Meta

Global XR Headset Shipments See A Major Decline, Sony Rises

0
Sony grabbed a market share of 24% in 2023 up from 1% in 2022. Bulky form factor, and lag, hinder adoption by serious...

Indian PC Market Grows 4% In Q4 2023, Local Manufacturing Efforts Ramp Up

0
IT procurement by enterprises and SMBs, delayed in the first half of 2023, is starting to take place and is expected to accelerate...

Buzz

Tenstorrent- RISC V cores

MosChip Collaborates With Tenstorrent For Advanced RISC-V Cores

0
Tenstorrent has selected Moschip due to their tape out expertise in design services. India’s MosChip Technologies has announced partnership with computing company Tenstorrent and to...

BYD Aims For 20% Increase In Yearly EV Sales

0
The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure...

RRP Electronics To Invest ₹5000 Cr In OSAT and R&D In Maharashtra

0
Cricket legend Sachin Tendulkar is investing in this semiconductor facility. Such celebrated personalities investing in the sector could be a great asset to the...

Important Sectors

BYD Aims For 20% Increase In Yearly EV Sales

0
The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure...

RRP Electronics To Invest ₹5000 Cr In OSAT and R&D In Maharashtra

0
Cricket legend Sachin Tendulkar is investing in this semiconductor facility. Such celebrated personalities investing in the sector could be a great asset to the...

Subsidy Cuts Push E2W Makers Towards Budget Models

0
Electric two-wheeler manufacturers face reduced government subsidies and growing competition from established petrol vehicle brands in the upcoming fiscal year. These challenges compel them...

Nissan To Invest In Renault’s Ampere For EV Roadmap

0
The alliance aims to introduce both five-seater and seven-seater models for each brand in India. Japan's Nissan Motor has committed to investing in Renault's electric...

TPEM And HPCL Team Up To Enhance EV Charging Infrastructure

0
The collaboration seeks to enhance the experience of electric vehicle owners in India and promote greater adoption of electric vehicles among the population. Tata Passenger...

Manufacturing

JLR To Hire 250 Electrical Technicians For Future EVs

0
These new roles, part of a £15 billion investment, are in addition to 300 positions created last year by the British car maker. Jaguar Land...

Altmin India Partners With WMG To Advance Battery Tech

0
Altmin and WMG will collaborate to strengthen their global battery materials supply chain position by optimizing cathode materials and developing diverse cell designs across...

EVs To Cost Less Than Gas Vehicles by 2027, Says Gartner

0
Gartner predicts a faster decline in production costs compared to battery costs, which represent the most significant expense in an electric vehicle, accounting for...
MG

MG Motor To Set Up Battery Assembly Unit At Halol Facility

0
The company plans to investigate battery cell production in collaboration with external partners. Automaker MG Motor India is actively exploring the possibility of assembling and...

Servotech Boosts India’s EV Charging Infrastructure With Manufacturing Facility

0
The new facility is poised to start with an annual production capacity of 24,000 power modules and plan to scale up to 2.4 lakh...