Shares of HEG Advanced Material Ltd were trading in the red and 3% lower on 30 September after announcing that its subsidiary Replus Engitech signed a memorandum of understanding (MoU) with Indus Towers to explore battery energy storage solutions for India’s telecom infrastructure. 

Under the agreement, Replus plans to make available a dedicated Battery Energy Storage System (BESS) production capacity of 1.5 GWh over two years. The proposed collaboration is aimed at addressing the growing power requirements of telecom networks. 

Replus plans to expand its portfolio of telecom-focused energy storage products, including higher-capacity battery systems. The company will also explore technologies such as sodium-ion batteries, which could improve reliability, energy efficiency and lifecycle performance in telecom applications.

The MoU builds on an existing commercial relationship between the two companies. Earlier in September, Replus received orders worth 217.56 crore from Indus Towers for the supply of lithium-ion battery banks. Those orders are scheduled to be executed by March 31, 2027, unless the companies mutually agree to an extension.

Replus is an integrated energy storage and clean energy company focused on battery technologies, BESS, telecom energy solutions and electric mobility. It designs and manufactures lithium-ion battery systems and also provides system integration, EPC, operations and maintenance and lifecycle energy asset management services.

For HEG Advanced Materials, the agreement provides another opportunity to expand its presence in India’s energy storage market following the restructuring of its business. The company is now focused on advanced battery materials, battery energy solutions, graphene and green power, with applications across EVs, BESS and other energy storage segments.

The planned 1.5 GWh capacity is intended to support telecom requirements over a two-year period, but the MoU itself represents an intention to collaborate and does not disclose a confirmed order value or guaranteed revenue from the proposed capacity. The actual financial impact will depend on subsequent contracts, deployment and utilisation.

The development nevertheless strengthens Replus’ relationship with one of India’s major telecom infrastructure companies. It also gives HEG Advanced Materials greater exposure to the growing demand for reliable backup power and energy storage solutions across India’s telecom network.

At 11:55 am, the shares of HEG Advanced Materials were trading 3.27% lower at Rs 240.35 on NSE.

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