Servotech Signs MoU with Haryana Government to Set Up New BESS Manufacturing Plant
Servotech Renewable Power System Ltd. has signed a memorandum of understanding (MoU) with the Haryana government to expand its manufacturing footprint in the state, according to company management. The MoU supports a new BESS manufacturing plant that the company is setting up to address current capacity constraints.
Speaking during the company's Q1 FY27 earnings call, Managing Director Raman Bhatia said the company's existing battery pack production capacity is fully utilised and unable to meet current demand, prompting the move into a new production phase.
The company has outlined a phased capacity expansion roadmap for its BESS business. Production capacity is targeted to double within six months, triple by March 21, 2027, and reach ten times current levels within two years. Management clarified that the tenfold target applies to production capacity, not capital expenditure, and that capital outlay for the expansion will be comparatively smaller.
Alongside the new manufacturing capacity, Servotech is expanding its distribution network by adding channel partners across North, South and North-East India. The company indicated that funding for the expansion may lean more toward debt financing rather than equity issuance, while aiming to maintain its debt-equity ratio.