Shares of Mahanagar Gas Ltd were trading in the green and 1% higher on 8 November after the company announced that they would form a Joint Venture (JV) with International Battery Company to manufacture, market, distribute, and sell battery cells to consumers in India.

MGL said it had signed a share subscription agreement (SSA) and a shareholding agreement (SHA) with International Battery Company, Inc. (IBC US) in a regulatory filing issued after trading hours on Thursday. In order to create a joint venture, both parties will invest in International Battery Company India Private Limited (IBC), which is presently a 100% subsidiary of IBC US.

MGL said last month that it had signed an indicative and non-binding term sheet with International Battery Company, Inc., a Delaware Corporation, for a projected investment of up to Rs 385 crore, or a minimum of 40% of IBC.

The headquarters of IBC US are in California, USA. The company has established a li-ion cell development and production pilot plant in Seoul, South Korea, and has obtained certifications for its prismatic NMC cells, including UN 38.3, BIS, and AIS.

A gigafactory is being established in Bangalore by IBC US and MGL to meet the needs of the local market. MGL plans to acquire at least 40% of IBC. This technology-driven plant in India will first manufacture prismatic NMC Li-ion cells, which are widely used in the mobility and battery storage industries. 

MGL has made a name for itself as a major CGD firm and a major force in India’s energy sector, according to Ashu Shinghal, managing director of the company. MGL has already made commitments to investments in the production of electric vehicles, CBG, and retail LNG.

It will improve its standing in the changing energy market by entering the battery cell manufacturing market, which is consistent with MGL’s goal of a cleaner future. The workforce at IBC is skilled and knowledgeable, having worked with top tech firms around the world.

MGL and IBC US will establish a giga plant in India to produce indigenous battery cells through IBC. Customers will be able to purchase battery cells locally instead of importing them as they currently do. Increasing the sector’s level of competition.

As a city gas distribution (CGD) company, Mahanagar Gas currently distributes natural gas to residential, commercial, and industrial consumers as well as CNG vehicles.

Although the company’s net revenue from operations increased by 9% to Rs 1,711.62 crore in Q2 FY25 compared to Q2 FY24, its standalone net profit fell by 16.5% to Rs 282.8 crore.

However, at 12:53 pm, the shares of Mahanagar Gas were trading 0.98% lower at Rs 1,423.50 on NSE.

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