Chemicals maker SRF will spend about ₹600 crore on a plant in Madhya Pradesh that makes aluminium foil for lithium-ion and sodium-ion batteries. The plant will be built in two phases, the first due by September 2028.
At a glance
- The plant will have capacity of about 12,000 tonnes of battery foil a year.
- It will be built at Jetapur by SRF's wholly owned subsidiary, SRF Altech, in two ₹300 crore phases.
- SRF's quarterly profit rose 31% to ₹509 crore on the day it announced the plant.
Background
Lithium-ion battery cells use a thin aluminium foil at the positive electrode to collect electric current, which is why battery makers need a steady supply of high-quality foil. SRF is an Indian company whose businesses include chemicals, performance films and foil, and technical textiles.
What happened
SRF's board has approved a battery foil plant costing about ₹600 crore, the company said in a regulatory filing on October 21, The Economic Times reported. The plant will make aluminium foil for lithium-ion and sodium-ion batteries used in electric vehicles and energy storage.
It will be built at the existing Jetapur site of SRF Altech, a wholly owned subsidiary, in Madhya Pradesh. Total capacity will be about 12,000 tonnes a year.
How it will be built
SRF will invest in two phases of ₹300 crore each. The first is due to be completed by September 30, 2028, and the second by September 30, 2030.
SRF's businesses "delivered a strong performance, despite an uncertain and volatile global environment," said chairman and managing director Ashish Bharat Ram. He said the company's spending on new sectors positions it well for the future.
The quarter behind it
SRF announced the plant alongside its second-quarter results. Consolidated net profit rose 31% from a year earlier to ₹509 crore, and revenue from operations grew 35% to ₹4,904 crore.
Its performance films and foil business, which the new plant will add to, grew revenue 51% to ₹2,122 crore. The chemicals business grew 25% to ₹2,079 crore.
What it means
The plant would give India's battery industry a domestic source of a key cell component, though not before 2028. For the aluminium market, 12,000 tonnes a year is a small amount, so the plan matters more for India's battery supply chain than for aluminium prices.
Our read
Outlook: neutral. A 12,000-tonne foil plant due from 2028 is too small and too distant to affect aluminium prices.
What to watch
- Progress on the first phase, due by September 30, 2028.
- Supply deals with Indian battery-cell makers for the new foil.
- SRF's performance films and foil revenue in the coming quarters.
For information only, not investment advice.
Aluminium price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-21: SRF's board approves the ₹600 crore battery foil plant and the company reports second-quarter results.
- 2028-09-30: Target date to complete the first ₹300 crore phase.
- 2030-09-30: Target date to complete the second phase.
Demand Drivers
Growth in electric vehicles and energy storage is creating demand for battery-grade aluminium foil in India.
Supply Drivers
The plant adds 12,000 tonnes of domestic battery-foil capacity in two phases to 2030.
What could lift prices
- New battery-foil plants add a growing, higher-value outlet for aluminium.
- SRF says its spending on "sunrise sectors" remains strong, which points to more such projects.
What could weigh on prices
- 12,000 tonnes a year is a tiny share of world aluminium use.
- The first phase will not be complete until September 2028.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | The plant would give Indian battery makers a domestic source of aluminium foil. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Battery Manufacturing | Positive | Indian cell makers gain a planned local supplier of battery foil. |
| Electric Vehicles | Positive | More local battery components support India's EV supply chain. |
Who gains, who loses
- Indian battery-cell makers: They could buy foil locally from 2028.
- Foreign battery-foil suppliers: A domestic plant could replace some of their sales to Indian cell makers.
Other ways this could play out
- If Indian cell-making capacity grows quickly, SRF could speed up the second phase.
- If battery demand slows, the second phase planned for 2030 could be delayed.
Price risks
- Aluminium prices depend on global smelter output, not single foil plants.
- Any effect on demand will not start before 2028.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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