HEG Advanced Materials Ltd shares jumped 5.22% on Wednesday morning, snapping a three-session losing streak after the company secured an official incentive nod worth ₹609.50 crore for its clean-energy subsidiary.
Trading desks moved early. Buyers took the counter higher within minutes of the opening bell, lifting the stock to reverse recent losses and extend its one-month rally past 30.6%. The buying followed a regulatory filing confirming that TACC Ltd—a wholly-owned unit of HEG Advanced Materials—received an approval letter under the central government's Electronics Component Manufacturing Scheme (ECMS).
Funds will back TACC's Synthetic Graphite Anode Material project located at the Sirsoda Industrial Area in Dewas, Madhya Pradesh. Run by the Ministry of Electronics and Information Technology, the ECMS framework directs capital subsidies toward domestic component production to plug acute gaps in global electronics and clean-technology supply chains.
The approval under ECMS is a strong endorsement of TACC’s technology and of our belief that India can build a globally competitive battery materials value chain at home.
Riju Jhunjhunwala, Chairman, Managing Director and CEO, HEG Advanced Materials Ltd
The Dewas manufacturing campus covers over 100 acres. HEG has designed the asset to address strict technical benchmarks set by domestic and international lithium-ion cell makers seeking non-Chinese raw material sources.
Phase one targets an annual throughput of 20,000 metric tonnes per annum (MTPA), scheduled for commissioning by June 2027. Under the primary master plan submitted to exchanges, total site capacity will scale beyond 30,000 MTPA by financial year 2029. Yet escalating domestic and export inquiries for anode and graphene supplies pushed management to revise ultimate targets higher, lifting overall planned anode capacity to 44,000 tonnes.
"Our Dewas facility is designed to deliver high performance synthetic graphite anode material that meets the standards of global cell manufacturers," said Ankur Khaitan, Managing Director and CEO of TACC Ltd.
| Operational & Capital Metrics | Target Allocation / Figure |
|---|---|
| ECMS Approved Government Incentive | ₹609.50 crore |
| Total Planned Capital Outlay | ₹5,500 crore |
| Planned Debt Financing | ₹3,400 crore |
| Planned Equity Financing | ₹2,000 crore |
| Phase 1 Commissioning Deadline | June 2027 (20,000 MTPA) |
| Expanded Full-Run Anode Capacity | 44,000 MTPA |
The Dewas buildout forms part of a larger ₹5,500 crore capital expenditure roadmap. Management structured the financing using ₹3,400 crore in long-term debt coupled with ₹2,000 crore in internal accruals and equity, including dedicated lines for backward integration through an in-house crucible project.
Parallel growth is emerging in grid storage. Jhunjhunwala confirmed that the group's Battery Energy Storage System (BESS) division will ramp up deliveries over the next two quarters. The unit operates close to operational break-even on current baseline revenue of roughly ₹500 crore, with volume expansions designed to absorb fixed overheads.
Management projects the BESS division will generate approximately ₹2,000 crore in annual revenue by financial year 2028 while delivering operating margins between 8% and 10%. Institutional order books are already firming up; group subsidiary Replus recently entered an agreement with telecom infrastructure operator Indus Towers to supply 1.5 gigawatt-hours (GWh) of energy storage systems.
Market Context: Global battery cell fabricators are actively seeking alternative synthetic graphite sources outside East Asian supply lines. With federal capital subsidies now committed, HEG's transition from legacy industrial carbon products to tier-one electrochemical anode materials provides the domestic EV and grid storage sectors with an integrated local supply line ahead of 2027 production cycles.
| FY28 BESS Revenue Target |
| ₹2,000 crore (8–10% EBITDA) |
| 1-Month Share Price Advance | 30.6% |