Lithium‑ion Battery – Acquisition Mandate
INVESTOR REQUIREMENT
LITHIUM-ION BATTERY MANUFACTURING & ENERGY STORAGE SOLUTIONS
STRATEGIC ACQUISITION MANDATE | INDIA
M&A ADVISORY SERVICES PROVIDED BY:
CA Dhiraj Ostwal & Co.
YOUR VISION, OUR EXPERTISE— SEAMLESS M&A SOLUTIONS.
PRIVATE & CONFIDENTIAL
INVESTOR MANDATE
Investor Profile & Strategic Objectives
Investment Thesis: Our investor is seeking to acquire a majority stake or strategic position in a distressed but technologically sound lithium-ion battery manufacturing business. The target operates in India's high-growth energy storage sector with proven infrastructure, defence-sector approvals, and significant untapped capacity. The opportunity offers immediate scale-up potential with working capital infusion.
Investor Credentials
Strategic Value Proposition
- ✓ Capital infusion for raw materials and working capital revival
- ✓ Capacity expansion from current 25% to 90% utilization
- ✓ Access to defence and government tender ecosystem
- ✓ Technology validation (BMS IP, ARAI certifications)
- ✓ Support for PLI scheme qualification and export development
- ✓ Solution to founder's succession and capital constraints
Target Company Snapshot
Sector & Product Requirements
- ✓ Lithium-ion Battery Pack Manufacturing
- ✓ Battery Energy Storage Systems (BESS)
- ✓ Defence & Submarine Battery Applications
- ✓ Telecom Infrastructure Power Solutions
- ✓ Solar Street Lighting & Inverter Backup
- ✓ Electric Vehicle (E-2W, E-3W) Battery Packs
Operational Characteristics
- ✓ Operational since 2014 with proven track record
- ✓ Full-scale Li-ion manufacturing launched in 2020
- ✓ Peak revenue achieved: ₹8 Crore PA (pre-COVID)
- ✓ Manufacturing capacity: 500 batteries/day (800 kWh/day)
- ✓ Signed NDAs with Defence (Mazgaon Docks) and Telecom (Indus Towers)
- ✓ Past supplies to Indian Army (co-developed tank battery pack)
Succession & Turnaround Context
- ✓ COVID-impacted business requiring working capital revival
- ✓ Founder seeking strategic partner for growth
- ✓ All infrastructure and equipment ready for immediate restart
- ✓ Ideal for acquirer wanting established manufacturing footprint
Financial & Operational Parameters
Historical Financial Performance
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 4.24 | 0.96 | 1.32 |
| EBITDA (₹ Lakhs) | (28.6) | (63.7) | (34.6) |
| PAT (₹ Lakhs) | (47.4) | (84.0) | (52.2) |
Additional Key Financial Metrics (as of FY25)
Projected Operating Metrics
Manufacturing Capabilities
| Category | Details |
|---|---|
| Facility Location | Bhiwandi, Thane, Maharashtra |
| Equipment Investment | ₹2+ Crore (specialised machinery) |
| Production Capacity | 500 batteries/day (800 kWh/day) |
| Current Utilization | ~25% (working capital constraint) |
| Key Equipment | Cell formation/grading (5k cells/day), auto spot welding, aging machines, BMS tester |
| Product Mix | Solar packs (70%), cell grading (30%), forklift/defence packs |
| Certifications | ARAI, BIS, CE, ISO (product/model specific) |
| Customer Base | Govt (MHADA, CREA), Defence (Indian Army, Mazgaon), EV OEMs (Odyssey, Seeka) |
| Intellectual Property | In-house BMS design and know-how |
Note: The company is currently underutilized due to working capital shortage. All machinery is operational. Immediate capital infusion can restart production at 30-40% capacity within 90 days.
Key Risks (Transparent Disclosure)
- Historical revenue drop due to director dispute (now resolved)
- Customer concentration risk (single customer for projected growth)
- Inventory includes slow-moving/obsolete items
- Negative net worth requires balance sheet restructuring
- Working capital intensive business model
Asset Base & Inventory Composition
Inventory note: Includes raw materials, WIP, finished goods. Portion slow-moving/obsolete – valuation adjustment needed. Fresh working capital required for new raw materials aligned with confirmed orders.
India's Battery Revolution – Market Tailwinds
- ✓ EV Revolution: 30% EV penetration target by 2030; E‑2W/3W market growing 40%+ annually
- ✓ Energy Storage Boom: 500 GW renewable target by 2030; BESS mandatory for new projects
- ✓ PLI Scheme Advantage: ₹18,100 Cr PLI for batteries; import duty protection (20-30%)
- ✓ Defence & Infrastructure: Growing demand in drones, submarines, forklifts, cranes
- ✓ BESS & AI Boom: Data centre backup market projected at $300B
- ✓ Supply Shortage: Domestic capacity insufficient; import substitution opportunity
Target Applications & Product Segments
Geographic Focus
| Priority Region | States/Areas | Rationale |
|---|---|---|
| Western India | Maharashtra (Bhiwandi, Thane) | Existing ops, port proximity, industrial hub |
| Central India | Chhattisgarh | Government tenders executed (CREA) |
| North India | Uttar Pradesh, Bihar | Active tender participation |
| Pan-India | All regions | Scalable via partner networks and tenders |
Investment Thesis – Distressed Asset, High-Growth Market
Proposed Deal Structure
Post-Acquisition Value Creation
- ✓ Immediate Production Restart: 30-40% utilization in Q1
- ✓ Order Fulfillment: ₹3 Cr pipeline identified (NDAs & tenders)
- ✓ Capacity Scaling: 60-70% in 6 months, 90%+ in 12-18 months
- ✓ Customer Diversification: expand to 5-8 new clients
- ✓ Regulatory Upgrades: leverage certifications for new variants
- ✓ Export Market Development: PLI scheme & cost advantage
- ✓ Technology Enhancement: R&D for advanced BMS & cell assembly
Why Invest Now: “The infrastructure is ready. The market is exploding. All we need is the right partner with capital and strategic vision. This is an asymmetric return opportunity with limited downside—distressed asset pricing combined with massive sector tailwinds.”
Confidential Evaluation Process
Stage 1: Initial Screening
- Submission of expression of interest
- Execution of mutual NDA
- Access to high-level financial summary and pitch deck
- Preliminary valuation discussion
Stage 2: Due Diligence
- Financial due diligence (3-year audited statements: FY23, FY24, FY25)
- Operational assessment and facility visit (Bhiwandi, Thane)
- Legal and regulatory compliance review (certifications, NDAs, contracts)
- Customer and supplier validation
- Inventory and equipment physical verification
- Management interviews (founder, production manager)
Stage 3: Transaction Execution
- Final valuation and term sheet negotiation
- Share Purchase Agreement / Asset Sale Agreement drafting
- Founder transition and handover planning (3-6 months support)
- Regulatory approvals and closing
- Integration and scale-up planning
Timeline: Indicative transaction completion in 60-90 days from term sheet signing, subject to due diligence.
NEXT STEP: CONFIDENTIAL INQUIRY
We look forward to exploring this strategic partnership opportunity with you.
CA DHIRAJ OSTWAL & Co.
Your Vision, Our Expertise— Seamless M&A Solutions.
To Submit Your Expression of Interest:
Send your inquiry to dhiraj.ostwal@gmail.com with subject line: "Strategic Acquisition - Battery Manufacturing Opportunity"
All inquiries will receive a response within 48 hours. Initial discussions are completely confidential and non-binding. A mutual NDA will be executed before sharing detailed information.
**Private & Confidential:** This document contains confidential information regarding an acquisition mandate. Not for distribution.
Lithium-ion Battery Mfg | Investor Mandate – Private & Confidential
CA Dhiraj Ostwal & Co. (M&A Advisory)