Pace Digitek Arm Clinches ₹158.7 Crore Battery Pack Order from Reliance

Pace Digitek material subsidiary Lineage Power Private Limited, has received a Purchase Order worth ₹158.71 Cr (Including GST) from Reliance Industries Limited to Supply Li-ion Battery Packs. In a regulatory filing while sharing these details, Pace Digitek said, "The delivery of Battery Packs of Li-ion 48V 15S1P 314 AH is expected to be completed by August 31, 2026."

Pace Digitek Limited, which is currently among the few manufacturers with end-to-end battery pack capabilities, spanning cell-to-pack through to cell-to-container production, Chairman and Managing Director Venugopal Rao Maddisetty, said that, apart from its comany there is limited domestic production capacity at the cell-to-pack stage. “Some players are converting packs into containers, as cell-to-pack manufacturing is critical. At present, many are sourcing packs and assembling containers,” Maddisetty said.

“However, when it comes to cell-to-container capability, I can say strongly that we currently have this capacity. That said, one or two companies may become ready over the next eight to twelve months,” he added.

Pace Digitek’s Strategy to Improve ROI in BESS

Explaining the return on investment (ROI) metrics for battery energy storage, Rajavendhan P, Chief Financial Officer at Pace Digitek Limited, said that battery energy storage systems as a product typically offer margins of around 13% to 15%. He added that the company enhances returns through in-house value addition, converting lithium-ion cells into packs, then into racks, and finally into containers at its factory.

Rajavendhan P also outlined the company’s plans to expand its battery energy storage system (BESS) manufacturing capacity to 5 GWh, up from its existing 2.5 GWh facility, which is currently operational and expected to reach full capacity by March.

He said the company’s focus on operational efficiencies is expected to improve margins. According to his estimates, margins of around 13% are likely to increase to 15% as efficiency gains are realised.

Additionally, he indicated that margins could improve by a further 1% through backward integration, supported by the company’s upcoming container fabrication facility.